To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.
The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
DMCFinder Concierge
Hotel Market Beat 2025 H1 – Germany
Hotel Market Beat 2025 H1 – Germany
INVESTMENT ACTIVITY
The German hotel investment market showed a remarkable increase in transaction volume in H1 2025 compared to H1 2024, nearly reaching the total annual volume of 2024. However, the market is still considerably behind the pre-COVID levels.
The investment activity in H1 2025 was driven by single-asset transactions, such as the Mandarin Oriental in Munich. This deal has set a new price-per-room record, reportedly amounting to approximately €2M per room. Overall, more than half of the transaction volume during H1 2025 was concentrated in the top-5 cities.
PRIME YIELDS
In the first half of 2025, prime yields remained mostly stable, albeit some high-profile transactions of trophy assets commanded sharper yields. The investor appetite for hotel assets has increased due to the stability of the hospitality market, with resilient demand and sound development of KPIs.
SUPPLY & DEMAND
Germany’s hotel market is expanding in 2025, with over 15,000 new rooms expected to open by the end of the year, within the major hotel brands alone. There were also several major re-openings across all segments, such as Radisson Collection Berlin (427 rooms), Kimpton Frankfurt (155) or Motel One Munich Hauptbahnhof (386). Furthermore, a competitive dynamic is unfolding, marked by M&As, brand changes, and strategic partnerships.
PERFORMANCE
In 2024, RevPAR in Germany grew impressively by 6.8% YoY, but this slightly reversed in H1 2025. RevPAR declined by 1.0% due to a 1.8% YoY drop in occupancy. However, performance among the Top-5 cities varied significantly, with Munich recording a substantial growth of +19.2%, while RevPAR in Düsseldorf sharply declined (-22.2%), attributable to the trade fair cycle.
source
Comments
More posts