HOTEL INVESTMENT MARKET REMAINS BUOYANT: BEST RESULT SINCE 2021
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The growing interest in hotel investments, which has been evident in recent months, is now finally reflected in transaction volumes. With total sales of nearly €1.43 billion, hotels saw a 44% increase in volume compared to the same period last year, marking their best result since 2021. The 12-month volume from the previous two years was already exceeded by the end of September. The market momentum that picked up over the course of the year is particularly positive. This is evidenced by two very strong quarters with investment volumes of nearly €600 million each. This follows a weak start to the year due to a lack of products after a strong Q4 2024.
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The result of the revitalized portfolio segment is also encouraging at nearly €380 million. The last time the volume was higher was in 2020. It is also worth stressing that the volume of individual transactions now exceeds €1 billion for the first time since 2022.
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The distribution by size category also demonstrates that the result is not based solely on individual large transactions. Significantly more investment volume was recorded in all categories above €10 million than in previous years. As larger transactions — including portfolios and larger individual transactions, such as the Mandarin Oriental in Munich and the Steigenberger am Kanzleramt in Berlin — are increasingly being recorded, the average transaction volume, around €25 million, is approaching levels last recorded before interest rate reversal in 2022.
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At the same time, investment activity from foreign investors has also increased. They accounted for around 59% of investments by the end of the third quarter.