HOTEL INVESTMENT MARKET GAINS MOMENTUM, NUMBER OF MAJOR TRANSACTIONS INCREASES
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The German hotel investment market has shown notable growth in recent months. Following two stable quarters in the second half of 2024, each with over €400 million, the market experienced a comparatively weak start in 2025 due to a lack of product. However, the first quarter of 2025 already recorded a broad increase in interest from investors, which was not jet reflected in the investment result of around €238 million. This increase was repeatedly reflected in the processes currently being marketed.
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The registered investment volume of €592 million in the second quarter impressively reflects the increasing market momentum. A hotel investment volume of €830 million can therefore be reported for the first half of 2025. Compared to the same period last year, this represents an increase of 52% indicating that the market is back on track for long-term growth.
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While small-volume deals dominated the first quarter, transactions above the €50 million mark made the difference in the second quarter. The purchase of the Mandarin Oriental in Munich for around €150 million by Eagle Hills was particularly prominent.
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Over the past two years, the proportion of foreign investors has been significantly above average. Convinced by the robust German hotel market and improving performance indicators, these investors are securing attractive investment opportunities, particularly in the premium hotel sector, in the current market environment. Foreign investors currently hold a substantial 70% market share.