What You Need to Know About the Hospitality Industry in Germany
TOPHOTELPROJECTS database shows that of the 10 cities in Europe with the most active hotel project pipelines, four of them are in Germany
It's not a secret that the hospitality industry in Germany is booming. In fact, a recent exploration of the TOPHOTELPROJECTS database found out that of the 10 cities in Europe that have the most active hotel project pipelines, four of them are in Germany. That's almost half of the list.
These four cities are Munich, which has 26 projects for 5,188 rooms in its pipeline; Hamburg, which has 20 projects for 4,966 rooms in its pipeline; Berlin, which has 17 projects for 4,567 rooms; and Frankfurt, which has 17 projects for 3,988 rooms. The significance of this is not to be ignored. That's all a way to say that nearly half of the top 10 cities for hotel construction in Europe are located in Germany.
So, what does the savvy hotel owner and operator need to know about this growth in Germany? Well, there are a few key points we're going to be discussing here today.
Hotel categories
The first is the categories that these projects fit into. Let's operate on a scale of four distinct categories, one that has budget/economy on the bottom and luxury on the top, with upper upscale/upscale and upper midscale/midscale in the middle. From this perspective, the most common project by far to find in Germany is one that fits into either of the two middle designations. The upper upscale/upscale category has the most with 361 projects and 53,817 rooms while the upper midscale/midscale designation has the second most with 270 projects and 31,735 rooms. There are slightly more budget/economy projects than luxury, with the latter having 81 projects for 13,390 rooms and the former having 125 projects for 18,983 rooms.
Year of opening
The next area that bears examining is the year in which these projects are slated to open. The TOPHOTELPROJECTS database shows that roughly 15 percent of them are still forthcoming in 2017, but 2018 is the most active year for the German project pipeline with 292 projects slated to debut then, making up 35 percent of the total. Of our remaining designations, we have 24 percent coming in 2019, 7 percent coming in 2020, and 19 percent coming in 2021 and the years beyond. It should come as no surprise then that there are not many projects in the pre-planning and vision stages, which are stages that typically indicate projects that will open later, rather than sooner. Only 12 percent of forthcoming German projects fall into these designations.
Most common brands
The last bit of info from the database we're going to look at today is the list of most common brands. Express by Holiday Inn is the dominant brand, with 28 projects for 4,362 rooms. That particular brands presence at the top of the list likely indicates that a significant amount of the growth is being driven by business travelers. Another interesting brand presence is Moxy Hotels, which comes in at fourth on the list with 12 projects for 2,359 rooms. Moxy matters because it is a hipper up and coming brand that caters to millennials and younger travelers, who also seemed to be flocking to Germany.
Related projects
The following German hotel projects currently in the pipeline:
Two-phased refurbishment/extension of the Hotel Bayerischer Hof in city center of Munich …[READ MORE]
Hotel am Fischmarkt "Areal West"
Hotel planned at the fish market. St. Pauli Landungsbrücken in Hamburg …[READ MORE]
Hyatt Place Frankfurt Airport will be part of the new Gateway Gardens business quarter …[READ MORE]
More information on German hotel projects can be found on TOPHOTELPROJECTS, the specialized service provider of cutting-edge information of the hospitality industry.
Jule Grass
Marketing Manager
+49 4261 4140 309
TOPHOTELPROJECTS
