SIGNIFICANT MARKET RECOVERY IN THE THIRD QUARTER
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After the first nine months of 2024, an investment volume of just under one billion euros (€992 million) was registered on the German hotel investment market. Although the long-term average was missed by 51% (average 10 years: approx. €2 billion), the comparatively weak result from the previous year was significantly exceeded with an increase of 73%.
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The German hotel investment market has continued to recover during the year. In particular, the volume in the third quarter was comparatively strong at around €450 million. The growing market momentum is underlined by a significant increase in registered deals. After the first nine months, more than 60 transactions have already been recorded, around 20 more than in the previous year.
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Nevertheless, the hotel investment volume remains noticeably below the historic highs. The main reasons for this are the increased cost of capital, the lower purchase price level and the declining number of completions in the new construction segment.
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At around €525 million, foreign investors have contributed an above-average market share of 53% (average 10 years: 41%) to the total investment volume to date. Portfolio transactions, the purchase of the Hotel de Rome and a number of smaller transactions contributed to this.
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On the investor side, family offices and private investors are currently much more present with a market share of 26%.