NUMBER OF TRANSACTIONS RISING, BUT INVESTMENT VOLUME REMAINS AT A LOW LEVEL
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In the first half of 2024, an investment volume of €545 million was registered with hotel transactions. Although the long-term average was once again clearly missed (-58% resp. 10-year average: €1.3 billion), this represents an increase of 40% compared to the weak H1 result of the previous year.
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The overall positive trend towards a further market upturn and an acceleration in transaction activity is underlined in a direct quarter-on-quarter comparison by an increase in the investment volume of almost a third and a doubling of the number of transactions to around 20 in the second quarter.
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Nevertheless, the investment volume remains at a significantly lower level than in previous years, which is partly due to the lower purchase price level across the board and the recent decline in completion figures in the new hotel construction segment. The market share of project developments is also at a below-average level in the low single-digit percentage range.
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The market share of foreign investors stood at an above-average level of 54% at the end of the first half of the year (Ø 10 years: 42%) and their hotel investment volume has more than doubled year-on-year to almost €300 million. This includes purchases such as the Hotel de Rome in Berlin, but also portfolio transactions and investments in smaller properties.
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In contrast to Q1, portfolio sales were registered again for the first time in the second quarter.