Germany had an incredibly successful year in terms of the nation’s hotel industry. RevPAR increased by 6.5%, far in excess of the overall 1.7% GDP growth last year.
This positive trend has not gone unnoticed by hotel investors who no longer consider hotels mere risky operator-run businesses, but rather a serious asset class in the property segment. The image of hotels as an attractive investment vehicle has significantly improved in recent years, not least due to the availability of leasehold assets.
Christie & Co’s research suggests investors focus strongly on business hotels due to Germany’s status as the key economic powerhouse within Europe and a particularly strong trade fair and conference market. Notably, investors and developers are most interested in hotels in the budget and 4 star segments with a selective smaller percentage of overall activity taking place in the five star and luxury segments. Resort properties are solely of interest in either established leisure destinations or within economically strong micro locations.
Source : Christie & Co