News & Stories
Berlin. Disappointment on the German hotel real estate market: contrary to expectations, the transaction volume in the second quarter of 2022 was noticeably lower than hoped for. The reasons are the uncertainty caused by the Ukraine war, especially about energy prices, the high inflation rate as well as the significantly increased financing costs. It has thus become almost impossible to make forecasts.
Wiesbaden. The conversions of hotels into offices, the projects on hold, the quiet death of both small and large operators along with the advance of alternative accommodation concepts all mean one thing: the German hotel market is in the grip of structural change. Yet the majority of industry representatives appear still to close their eyes to it. Susanne Stauss investigates the causes of this trend.
London. In several countries, the number of transactions has meanwhile strongly increased again The German hotel real estate market, on the other hand, is just sorting itself out again. Institutional investors have almost every second hotel room on their radar. The value per hotel room is rising again.
London. European hotel transactions made a solid recovery during 2021, with deals totalling 16.4 billion euros and doubling that of 2020. Performance was boosted by a strong demand for single asset properties which saw average sales prices per room reach record levels at 260,000 euros.
Berlin. In the first quarter of 2022, the hotel investment market in Germany is behind the first quarter of 2021. Experts cite a lack of buying opportunities in the core segment as one reason. Sales in other segments partly lead to conversions. Basically, a further increase in buyer interest in hotel properties is expected.
Vienna. With the start of the pandemic in 2020, the Austrian hotel real estate market almost came to a standstill. Then, in the 1st half of 2021, properties worth more than 110 million euros changed hands. The year ended with a total volume of about 400 million euros.
Geneva. Since the 1980s, residences with a hotel brand on the roof have been selling much better than without. The typical branded residence project is asset light. The supply has been growing significantly for years. While luxury has been the dominant trend so far, the market is facing extensive segmentation, especially towards the midscale segment, as well as in Europe and in holiday destinations.
Berlin. Living, especially funded living, has overtaken hotel projects in the pandemic. Nevertheless, the largest German hotel project developer to date, GBI AG, intends to remain loyal to the hospitality sector – amongst other things, with attractive duo or trio projects. Hotels and the other asset classes are keeping the balance in the portfolio for now. GBI's own apartment brands are the most successful assets without restrictions. However, the GBI will break new ground with senior living products soon. Reiner Nittka, Chairman of the Executive Board of GBI Holding AG, talks in detail about the changes on account of corona – in the business and in the market.
Munich. The City of Munich wants to attract more private investors for the accommodation of homeless people. For this purpose, the funding guidelines for flexi homes are to be adapted. The focus is also on vacant hotels.
Frankfurt/Main. The German hotel investment market was much more lively at the end of the year 2021 than in the first three quarters. Larger transactions, but also a plethora of individual deals drove the action, especially in Berlin - until Omicron delayed everything.