HOTEL MARKET WITH RESPECTABLE RESULT
The first quarter of 2021 shows that hotels as an asset class continue are heavily influenced by the ongoing corona crisis. Overall, the investment volume was a good € 520 million, which corresponds to a decline of more than 50% compared to the exceptional result of the previous year. However, it should be noted here that the prior-year quarter was still largely unaffected by the effects of the Corona crisis, and at the same time the hotel market was able to benefit strongly from the TLG takeover by Aroundtown. However, even compared to the 10-year average, losses of a good 20% were recorded. It is thus clear that many investors continue to be cautious against the background of the unchanged situation in the tourism and business travel markets. Nevertheless, the hotel investment market is far from standing still. Much the contrary, attractive investment deals were registered in all city categories and hotel segments, in some cases with high valuations. Although the permanent lockdown is increasingly affecting the substance of many operators, fire sales remain the exception.
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