Expectations are very optimistic, especially in the luxury sector, where 40 percent of operators expect a "very good" performance. For budget hotels, even 42 percent expect a very good performance in the next twelve months.
Josef Filser, Head of Hospitality Germany & Austria, explains, "Hotel markets in the DACH regions have recovered robustly since the COVID-19 pandemic, driven primarily by a strong increase in average room rates, while occupancy rates often still lag behind 2019 results. We expect the sector to continue to develop positively despite the macroeconomic challenges.
Berlin, Hamburg, Munich and Vienna remain the hotel markets preferred by hotel operators in the DACH region. Berlin has an attractiveness score of 4.48 (out of 1-5 points) on this scale, compared to only 3.09 for Düsseldorf. The preferred markets benefit from diversified demand and a return of international travel. The strong domestic markets of Leipzig (3.35) and Dresden (3.17) also enjoy operator interest.
In terms of contracting, 60 percent of operators say they discuss or include clauses specifying the reporting of ESG metrics in new contracts or contract renewals. Pandemic clauses are also increasingly being discussed. The survey found that nearly 40 percent of operators are offering more hybrid lease models than before.
The survey shows that almost all project developments are continuing, with only 3 percent of the project pipeline on hold. Still, about 10 percent of projects are currently delayed, mostly by about one to six months. The main reasons for this are rising project development costs, problems with financing or contract terms that are no longer viable.
As far as ESG is concerned, most operators indicated that they are willing to pay higher rents if the properties meet the highest sustainability or building certification standards.