At a Glance Q4 2021

Hotel investment market Germany

Hotel-Investmentmarkt Deutschland

SLIGHT RECOVERY ON THE HOTEL INVESTMENT MARKET  

As is well known, hotel real estate is one of the asset classes that suffered most from the consequences of the Corona pandemic. Accordingly, the investment volume for 2021, at a good €2.5 billion, is still some way off the pre-Corona levels. The long-term average, for example, was missed by almost 25%. Compared with the previous year, however, there was an increase of a good 15%. Considering only the single deals segment, the growth is even more pronounced at almost 47%. Single deals worth a good €2.2 billion are already close to the 10-year average. By contrast, the contribution from portfolio deals, at €300 million, is the lowest since 2012. The positive trend over the course of the year is particularly encouraging: While potential buyers were mainly on the sidelines in the first three quarters in view of the uncertain outlook for the national and international travel markets, they noticeably released the brakes in the final quarter: In the fourth quarter, a good €1 billion was invested in hotel properties, which is by far the highest quarterly figure since the outbreak of the Corona epidemic. This shows that the post-Covid scenario is once again increasingly coming to the fore among many investors.

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