News & Stories

Hotel property is becoming an investment alternative to conventional asset classes. Findings from a recent study on the yield potential of the German property markets.

In Germany, the hotel asset class is back again. However, it has also been suffering from the common real estate slump. And other markets in Europe are still delivering better KPIs. CBRE Deutschland, the Acron Group, Arbireo Hospitality Invest, Commerz Real, and Magna Asset Management discussed current market figures, trends, and obstacles.

International property experts are still particularly negative about the prospects for offices in secondary locations and retail in many markets. Hotels, on the other hand, are seen as a beacon of hope. A sentiment index confirms this. 

With a total turnover of 416.9 million euros for the 2023 financial year, Novum Hospitality has set another operating record. The cooperation with IHG is set to take things even further uphill. 

The Italian hospitality real estate market has long been characterised by a strong presence of investors with value-add and opportunistic approaches. Last year, domestic owner-operators generated a strong return of transaction volumes. Now the large capital companies are back – with plenty of money in their wallets and open to all types of hotels.

The new, now 12th edition of the USALI (Uniform System of Accounts for the Lodging Industry) provides more detailed standards for recording ESG-related criteria as well as other updates relevant to hotel operators.  

AccorInvest and the hotel REIT Covivio swap assets, as expected. The motivation: Covivio is looking for attractive value creation opportunities. AccorInvest sees better margins and is no longer exclusively tied to Accor brands. 

Last year, the arcona hotel group slipped into insolvency. This was followed by a strict restructuring programme and a reorganisation concept that obviously convinced the creditors. 

The enormous efforts to protect the climate and species are increasingly focussing on the role of the global financial markets. It is becoming clear that "green money" (green loans) - i.e. sustainable investments or loans - are indispensable.

The global hotel investment landscape in 2024 showcases diverse strategies and market dynamics across the regions. Everywhere, there is a dominant sense of optimism driven by "perceived" market stability and attractive investment opportunities. Global experts predicts that investment activity will pick up in the second half of 2024 across all regions.