At a Glance Q4 2020

Hotel investment market Germany

Hotel-Investmentmarkt Deutschland


Due to the drastic decline in global travel and the repeated temporary closure of accommodation facilities in Germany, hotels are among the asset classes that have suffered most from the Corona crisis. This is also clearly reflected in the investment result: a transaction volume of just under €2.2 billion represents the weakest result in seven years. Compared to the strong result of the previous year, a decline of 57% is recorded and the 10-year average (€ 3.2 billion) was also missed by almost one third. A good half of total sales were generated in the first quarter, which was still largely unaffected by Corona (€ 1.12 billion), while only  1.06 billion was added in the three subsequent quarters. At just und € 410 million, the normally strong fourth quarter fell far short of the previous years‘ results. By comparison, in 2019, the first quarter accounted for only 13% of the result, while the final quarter accounted for a good half of sales. It is evident that hotel investors are being very cautious in the current situation. However, core and core-plus properties with relatively high valuations continue to be sold, while classic "fire sales" remain the exception. In addition, the trend for hotels to be increasingly sold as mixed-use properties is continuing.

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