PARIBUS IMMOBILIEN ASSETMANAGEMENT | REAL ESTATE MARKETS
Hotel Real Estate market Germany
The Hotel industry and the entire accommodation sector are among the economic sectors most affected by the pandemic. Overnight stays plummeted by up to 90 % at the beginning of the COVID-19-pandemic. The relaxation during the summer months of 2020 mainly benefited the holiday hotel industry; during the following winter months, the second lockdown led to a massive decline in the number of overnight stays. The changing world of work (trend towards video conferencing) and changing tourism are also expected to have a long-term impact on the Hotel market beyond the end of the COVID-19-pandemic.
Although project developments in the Hotel Real Estate market were stopped in individual cases against the background of the crisis, the total number of hotel rooms in Germany rose to around 880.000 in 2020, a new record high. Supply is also likely to continue to increase in the coming years, with around 82.000 new hotel rooms currently projected nationwide. The trend here is towards a reduction in the number of rooms per establishment and a greater share of mixed-use concepts that are integrated into surrounding or newly emerging urban first districts. Large projects with more than 500 rooms are only likely to be realised in exceptional cases.
The circumstances of 2020 were also reflected in the investment market for Hotel Real Estates. Transaction volumes slumped by around 60 %, a large part of the EUR 2 billion turnover (2019: EUR 4.9 billion) also took place in the first quarter of the year. Secondary locations felt this most strongly, with some investors withdrawing from purchase agreements. A shift in demand was also recorded. In line with tourism movements, increased investor interest in holiday and resort hotels was noted. The net yield stagnated at around 4 %, but it is difficult to make a reliable statement in this regard due to the significantly lower number of transactions.
As of: July 2021
- Engel & Völkers Hotel Consulting: Hotel Market Report Germany 2021
- ZIA Zentraler Immobilien Ausschuss e. V.: Spring Report on the Real Estate Industry 2021 by the Rat der Immobilienweisen