Germany investable hotel market reaches new record level
At €57.5 billion ($65.1 billion), the investable hotel market in Germany reached a record level in 2018. According to the latest analysis carried out by Union Investment and bulwiengesa, the market increased in value by approximately 9.5 percent compared to 2017 (€52.6 billion/$59.5 billion).
The continued strong growth (prior year: +5.1 percent) is due to the sustained high level of new-build activity in the hotel sector and increasing asset values, reflecting a further improvement in the economic situation of many hotels in 2018.
“Market conditions for hotels in Germany remain good. Overnight stays experienced stronger growth in 2018 than at any time in the last 10 years, rising by 4 percent compared to 2017. And in the case of approximately 80 percent of top hotels, revenues increased compared to the previous year,” explained Dierk Freitag, departmental head and partner at bulwiengesa. “In terms of value growth, our forecast from the previous year was exce