Investable hotel market in Germany grows to over EUR 52 billion

The investable hotel market in Germany grew in 2017 by approximately six per cent to EUR 52.6 billion compared to 2016. According to the latest market value analysis carried out by Union Investment and bulwiengesa, the size of the German hotel market has doubled in the last ten years. The key factor in this rise is the continued growth of the branded hotel segment in Germany - which is favoured by investors - as well as a general increase in supply.

This is reflected in an upturn of 16.6 per cent in the number of hotel beds over the last ten years. The strong performance of the German hotel chain segment, which is being driven by rising occupancy and higher room rates, also boosted value. RevPAR(revenue per available room) in the German hotel chain segment increased significantly over the period in question, climbing from EUR 49.9 to EUR 66.7. Budget and mid-range hotels saw above-average value growth.