Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1} Share on Xing

22 percent increase in hotel transaction volume in Germany in 2021 – operator-free takeovers dominate

Verena Bauer • 12/01/2022

The German hotel real estate market achieved an increase in transaction volume of 22 percent in 2021 compared to the previous year. The 72 transactions generated a total turnover volume of around EUR 2.5 billion (2020: EUR 2.1 billion). On the basis of the preliminary figures Germany thus ranks second in Europe – after the UK - in 2021, which underlines Germany's position as a liquid and safe investment location. The average transaction size was EUR 35 million. The majority were individual property transactions, contributing some 87 percent of the total volume. Portfolio investments were the exception, contributing only 13 percent.

German investors were the most active and responsible for almost 80 percent of the transaction volume, followed by investors from the UK (8 percent), the USA (5 percent), Israel (3 percent) and France (3 percent).

The most active investor type was institutional investors, who were responsible for around 44 percent of transaction volume. This was followed by private investors / family offices (17 percent), hotel operators (13 percent), real estate companies (12 percent), private equity investors (8 percent) and developers (6 percent).

The largest transactions in Q4 2021 included:

  • the sale of the 5-star "Königshof" development project in Munich to the Inselkammer Group. The seller was the Munich hotel group Geiselhotels. When completed in mid-2023, the hotel will have 105 rooms, 180 parking spaces and 1,860 sq m of retail space.
  • the sale of the "Radisson Red" project with 265 rooms as part of the "Laurenz  Carré" urban district development in Cologne to  Corestate. The seller was  Gerchgroup, which is renovating and expanding the listed Senate Hotel. Completion is planned for  2024.
  • the purchase of the "Prizeotel" with 265 rooms in Münster by Hamburg Team as part of the "Hansator" .urban district development The seller and developer is Landmarken AG. In addition to the hotel, 313 apartments, almost 2,300 sq m of retail and gastronomy space and around 100 parking spaces are planned. Completion is planned for the 3rd quarter of 2022.
  • the sale of the hotel duo B&B  and  Arthotel  "ANA Amber" with a total of 258 rooms in Rostock as part of the hotel and office project "Hanse  Tio" to Union Investment.  The hotels already opened their doors last summer. In addition to the hotel, around 3,500 sq m of office space was built. The seller was the developer, List  Develop  Commercial.

Around 60 percent of transaction volume 2021 was contributed by operator-free sales. In most cases, these properties were older or requiring renovation, but also development projects that experienced trouble in the course of the Covid-19 crisis. Buyers included developers and private equity investors who favour a conversion. Especially in the major cities, conversion to office and residential space is being considered with increasing frequency. One of the most prominent examples is the planned conversion of the former "Ellington" hotel building in Berlin into an office building with additional retail and catering use.

Hotel Investmentmarkt Q4 2021

Some financially strong operators also used 2021 to further advance their expansion. The Premier Inn Group, for example, has secured two development projects at Stuttgart and Berlin airports. The Park Plaza Group took over two existing buildings of the Maritim Group on Timmendorfer Strand and in Gelsenkirchen. For the majority of the properties, a continuation of operation, partly with a new operator and new brand, is planned.

"Investors are increasingly looking positively to the future and the potentially less dangerous Omicron variant raises hopes for an early return to normality. The largest challenges, however, remain the reluctance of banks and the general uncertainty regarding the ultimate effects of the pandemic. A mass of emergency sales is also not expected in 2022 however, thanks in part to extended bridging aid. Some of the major operators and franchisees have been re-capitalised and are in a much more stable situation than at the beginning of the crisis. Capital for hotel investments continues to abound, with investors focusing in particular on value-add and core opportunities. Private equity investors, selected institutional buyers, developers and new serviced apartment operators with strong capital partners are already in the starting blocks. In addition, we will again observe a lot of activity in the area of company and operator takeovers this year,"  comments Stefan Giesemann, Head of  Hospitality Germany & Austria at Cushman & Wakefield.



verena bauer
Verena Bauer

Head of Business Development Services, Germany • Frankfurt


Tina Reuter Head of Germany Cushman & Wakefield
Tina Reuter confirmed as Head of Germany at Cushman & Wakefield

Global real estate services firm Cushman & Wakefield has confirmed Tina Reuter as its Head of Germany. She has held the position on an interim basis since December 2023 and succeeds Yvo Postleb who has decided to leave the business to continue his career outside Cushman & Wakefield.

Verena Bauer • 18/04/2024

Investment Market Munich
Q1 results for Munich’s real estate investment market better than full year 2023

Munich’s commercial real estate transaction volume reached EUR 1.24 billion in Q1 2024, a higher result than for the whole of 2023 (EUR 1.18 billion). This is the first time since Q3 2022 that the transaction volume has exceeded the one-billion-euro threshold.

Verena Bauer • 15/04/2024

Office Market Munich
Munich’s prime monthly office rent breaks the EUR 50 mark and reflects demand pressure in the city centre

Take-up of around 139,000 sq m recorded in the Munich office letting market area in Q1 2024 – an increase of 24 percent compared to the equivalent quarter last year.

Verena Bauer • 11/04/2024


Office Fit Out Cost Guide - Web card
Insights • Workplace

Germany Office Fit Out Cost Guide

Utilize our Office Fit Out Cost Guide 2024 to effectively plan and budget your office evolution in Germany. Start transforming your workspace in cities like Berlin, Frankfurt, and Munich today!
Cushman & Wakefield Asset Optimisation Guides

Complete Asset Optimisation Guide

Our asset optimisation whitepapers serve as your comprehensive guide through the multifaceted real estate landscape.
Verena Bauer • 05/03/2024
City Logistics

European City Logistics Reports

Cities – and city logistics – continue to evolve in the post-pandemic environment. And with them, city logistics real estate strategies are also evolving.
Verena Bauer • 07/02/2024


Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.
These cookies ensure that our website performs as expected, for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All