Skip to main content Skip to footer

Germany: Hotel Investment H1 2020

Download Report
The German hotel investment market posted roughly €1.3bn in transaction volume in H1 2020. Although these results are down 21% yoy, they are still 7% above the 10 year average. The impact of the pandemic was quite tangible in Q2. With hotels closed and visitor numbers down drastically, a number of deals were put on hold in Q2 until the situation stabilizes. H1 results were thus significantly impacted by Q1 activity, in which company takeovers like the TLG acquisition by Aroundtown spurred market activity one more time prior to the pandemic. Therefore, the share of portfolio deals was up to 50%, also the share of international buyers climbed contrary to the market . With the exception of the nhow Berlin high volume deals were missing in Q2, small volume transactions tended to dominate market activity . Secondary and tertiary markets were equally in demand as the Top 7. Despite the small number of deals signed, investors continued to show interest in value stable core assets, causing prime yields to remain stable for the time being. However, there may be considerable risk premiums being priced in for value added products. The risks involved in hotel investments are lessening as travel activity begins to normalize. Hotel assets continue to claim a place on many investor agendas and are also being preferred as a component in mixed use assets. The challenging financing environment around hotel investment will gradually improve and market activity will again pick up once the current uncertainties become manageable. Signs of this renewed activity were already becoming apparent in late Q2.

Research Hotel thumb

Germany: Hotel Investment H1 2020

Download Report
Related Experts

Susanne Kiese

Head of Research | Germany

Duesseldorf

Susanne joined Colliers International Holding GmbH in February 2016 as Head of Research Germany. Before, she worked as a Senior Research Analyst for Hypothekenbank Frankfurt / Eurohypo, a specialist bank for real estate and public finance for almost 12 years. Susanne was also Research Analyst with Deutsche Gesellschaft für Offene Immobilienfonds (DEGI) GmbH, the property related investment company of Allianz Dresdner Property Group (now part of Aberdeen). 

View expert

Marc Steinke

Senior Consultant | Research

Berlin

Marc joined Colliers International in 2018 as a Research Analyst. He was responsible for monitoring and analyzing the national investment and letting markets with a focus on office, retail,  hotel and B&C cities.

Since 2021 Marc works for the Berlin office of Colliers. He supports capital market transactions, pitches, buy-side advisory and letting deals in the german capital. He also writes market reports and works on client studies .

View expert