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Germany: Hotel Investment Q1 2020

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Transaction volume on the German hotel investment market in the first 3 months came to €1.03bn, up 71% yoy and just one percentage point shy of 2017’s record result. Q1’s impressive performance can mainly be attributed to investment in property companies and an uptick in portfolio deals. Portfolios generated over €600m and a market share of 59%. The acquisition of the TLG portfolio in the wake of the Aroundtown amalgamation was the largest portfolio transaction posted in Q1. The deal included the sale of several hotels in Germany. In contrast to this lively interest in portfolio deals, single asset transactions saw more moderate activity. High volume single asset deals were few and far between compared to previous years. German investors took a dominant market position. They accounted for a total of 75% of transaction volume buy side and 94% on the sell side. Transaction volume was evenly spread between locations within and outside of the TOP 7. The growing trend towards investment in 3 and 4 star hotels that we have seen in the past few quarters continued in Q1. Hotel investors remain cautious as the shutdown due to the corona pandemic leads to massive losses in revenue for hotels . According to a current Colliers survey , 17% of surveyed investors express an interest in hotel assets . Increases in rents or purchase prices are not expected . We expect subdued investment activity in the coming months, which will most likely be reflected in transaction volumes as of Q2. It is too early for reliable forecasts, but perhaps we will even see interesting new investment opportunities.

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Germany: Hotel Investment Q1 2020

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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). 

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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 .

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