German hotel market: operators more courageous than investors in tapping into new markets

Hotel operators and investors in Germany continue to perceive the mood on the hotel real estate market as positive according to the Sentiment Report Hotel Market Germany 2019/2020. Due to an increasing product shortage, especially in the top seven cities, investment activities within the various city types have shifted further compared to last year. In contrast to operators, however, investors are still hesitant to invest across the board in C-cities. This year's hotel market survey was conducted by RUECKERCONSULT on behalf of Engel & Völkers Hotel Consulting (EVHC) among approximately 150 national and international hotel operators and investors.

"Despite the optimistic overall assessment, the industry experts believe that the greatest market risks lie in the general economic conditions, such as a growing delta between lease levels and construction costs and the downturn in the global economy,” said Andreas Ewald, managing partner of EVHC. Investors expect further pric