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

Hotel Transaction Activity Remains Low and Yields Continue to Rise

Verena Bauer • 10/10/2023

In the first three quarters of 2023, international real estate consultancy firm Cushman & Wakefield (C&W) recorded a total transaction volume of EUR 540 million in the hotel segment, of which EUR 150 million was generated in the 3rd quarter. The result represents a decline of almost 60 percent compared to the equivalent period last year. Only single-property transactions were recorded. The average transaction volume was approximately EUR 16 million.

Around two-thirds of transaction volume was contributed by German investors. This was followed by buyers from Great Britain with 20 percent and Israel with 13 percent.

Institutional investors accounted for the plurality of the transaction volume, at 38 percent. Hotel operators accounted for 28 percent of total CRE transaction volume. Other market participants such as private equity, family offices and developers contributed 34 percent of the transaction volume.

"Transaction activity remained at a low level.  Above all, operator-free hotels with repositioning or value-add potential were traded. Financially strong hotel operators such as Premier Inn and Leonardo, as well as private equity investors, came into play here. Purchases or sales of core properties with long leases were the exception," comments Josef Filser, Head of Hospitality Germany & Austria at C&W. 

Among the largest transactions in the 3rd quarter of 2023:

  • the acquisition of the 150-room Holiday Inn Mannheim, part of the mixed-use office and hotel development "No.1", by the Hamburg-based investment and asset manager Fondsgrund. The seller was Adler subsidiary Consus. The total price was around EUR 75 million. 
  • the sale of the 190-room Pentahotel Berlin-Köpenick to operator Leonardo Hotels. The hotel is soon to be renovated and repositioned under lifestyle brand NYX.
  • the sale of the Essential by Dorint Hotels in Cologne-Deutz and the nh Hotel in Magdeburg with a total of 260 rooms to the Alchemy Step Hotel Group. The hotels will be renovated in the coming months and integrated into the Marriott system via franchise agreements. 
  • the acquisition of the 84-room nestor hotel in Neckarsulm by Art-Invest. As part of a new long-term lease with The Chocolate on the Pillow Group, the hotel will undergo a major renovation and repositioning. 

Josef Filser on the outlook for the hotel market: "The transaction volume has probably bottomed-out and prime yields have almost reached their peak. In view of the economic situation, further interest rate hikes appear increasingly unlikely, which should lead to greater stability and certainty in the transaction market. Added to this is the continued very good operating situation with strong demand and good performance figures in almost all major hotel markets. In addition, the challenges in the office sector are leading to an increased willingness among many market participants to invest in alternative assets such as hotels."

 

Hotel transaction volume Germany from 2013 to Q3 2023

MEDIA CONTACT

verena bauer
Verena Bauer

Head of Marketing & Communications Germany, Cluster Lead • 60313 Frankfurt am Main

RECENT NEWS

Little White House on the Alster in Hamburg
C&W brokers the sale of the “Little White House on the Alster”

International real estate consultancy Cushman & Wakefield has brokered the sale of the former US consulate in Hamburg, also known as the “Little White House on the Alster”. The seller of the property, the government of the United States of America, was exclusively advised by C&W.

Verena Bauer • 15/02/2024

Skyline Tower Munich
Skyline Tower Munich

The Munich office letting team of international real estate consultancy firm Cushman &  Wakefield has let around 1,000 square metres of office space in Munich’s Skyline Tower building. 

Verena Bauer • 01/02/2024

Rehab Clinics Report
Facts and figures on investment in German rehabilitation clinic real estate

The rehabilitation real estate asset class enjoys great popularity as a component of institutional investors’ portfolios, thanks to stable utilisation rates, secure cash flows via long-term leases, low cost risks and attractive returns.

Verena Bauer • 31/01/2024

INSIGHTS

City Logistics
Insights

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
CW Rethinking Properties Asset Classes
Insights

Rethinking Properties

Discover how our strategic rethinking process in the EMEA region helps you unlock the full potential of your commercial property investments. Expert portfolio assessment, scenario-based solutions, and data-driven recommendations.
Verena Bauer • 31/01/2024

CAN'T FIND WHAT YOU'RE LOOKING FOR?

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.
MORE OPTIONS
AGREE AND CLOSE
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
SAVE SETTINGS