The flourishing German hotel market has shown growth for the eighth consecutive year with more overnights being registred in 2017 than in previous years. RevPAR, which increased by 3% was fuelled by both occupancy and ARR growth. At the same time inflation returned and reached 1.8%, which is almost on the European Central Bank's 2% target. It remains to be seen whether increasing inflation will slowly take the pressure off the German hotel investment market. To date, both national and international investors' and brands' interest in the market remains strong. This has resulted in record-low yields and large supply waves.
Source : Christie&Co