- Investment-relevant market volume grows to 66.1 billion euros
- The transformation of existing properties continues to gain importance in the hotel market
June 30, 2026: In 2025, Germany once again set a new record for overnight stays, with 497.5 million guest nights. As in the previous year, this positive development was driven by robust tourist demand. Against this backdrop, the hotel investment market has also continued to stabilise. Demand for overnight stays continued to show a moderately positive trend at the start of 2026. Domestic demand, in particular, has risen recently; by contrast, however, international demand increased only slightly.
Unlike in 2024, when, amongst other things, the trade fair and conference sector as well as major events such as the European Football Championship significantly bolstered occupancy rates in city-centre hotels, the sustainable profitability of these establishments has come to the fore more strongly since 2025.
Hotel transaction market showing signs of recovery
In this dynamic market environment, transaction activity picked up significantly in 2025. The final transaction volume for the whole of 2025 in Germany amounted to around 1.9 billion euros, which was roughly in line with the average level for the years 2020 to 2024. This represented an increase of more than a third compared with 2024. The market was primarily driven by large-volume individual transactions, which accounted for around three-quarters of all deals concluded. At the same time, strategic portfolio deals made a comeback.
Prime yields in the German hotel sector remained stable overall or fell slightly in 2025 compared with 2024. Whilst the German average remained at around 5.25 per cent, significantly increased market liquidity, larger transactions and the return of core and core-plus investors to selected prime locations led to a moderate downward pressure on prime yields. However, there is no sign of widespread yield compression; rather, pricing remained heavily dependent on the specific property, location, operator and contract terms.
You can now read the press release at the link below
