SLIGHT RECOVERY OF THE HOTEL INVESTMENT MARKET
While the hotel investment market had achieved an investment result of a good € 1.1 billion in the first quarter, hotel operators and investors felt the consequences of the corona crisis all the more clearly in the second quarter. A volume of just under €280 million represents the lowest quarterly result since 2013, which is not surprising given the drastic slump in global travel. In the third quarter, there are signs of a slight recovery in the German hotel investment market: With a volume of about €450 million, the bottom seems to have been passed, even if the Q3 result is still a long way from last year‘s figures. Overall, the first nine months of the year saw a turnover of a good €1.8 billion, which is around a quarter less than in in the same period 2019. A closer look at the hotel deals in the third quarter reveals that mainly core and core-plus properties with relatively high valuations were sold, i.e. there is still little sign of the sometimes expected accumulation of "fire sales". In addition, the trend continues that hotels are increasingly being sold as mixed-use properties.
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