Hotel financing has seen a major shift since the credit crunch and subsequent economic recession in 2008. Whereas bank lending was widely available and not a particularly hot topic for discussion, it has since been the focal point of almost every hotel investment conference in Europe and further afield. Despite these constraints shackling hotel transaction activity, Germany is experiencing increased interest from the international hotel investor community. With all the debate over the level of lending and the terms, we want to quantify some of the most important lending parameters and selection criteria.

HVS London conducted a comprehensive confidential survey with the ten major German banks (including private banks, Landesbanken and Sparkassen) that are active in hotel lending. The survey assesses the investment activities and sentiment in German hotel lending. Presented in this article are the results and trends.

About HVS

HVS is the world's leading consulting and valuation services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980, the company performs more than 4,500 assignments per year for virtually every major industry participant. HVS principals are regarded as the leading professionals in their respective regions of the globe. Through a worldwide network of over 50 offices staffed by 300 experienced industry professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. For further information regarding our expertise and specifics about our services, please visit www.hvs.com.

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