- €2 billion transaction volume for 2025 as a whole – up 50 per cent year-on-year
- Individual transactions dominate
- Prime yields remain at 5.50 per cent
Cushman & Wakefield recorded a total transaction volume of just under €2 billion in the German hotel segment for the full year 2025. This represents an increase of over 50 per cent compared to the previous year. Despite this increase, the transaction volume was still around 30 per cent below the 10-year average.
Among the largest transactions of the year were the sale of Blackstone's 17-hotel Keystone portfolio to Event Hotels in the portfolio segment and the sale of the Mandarin Oriental Hotel in Munich in the single transaction segment.
Overall, single transactions dominated the market, accounting for around 80% of the transaction volume. In addition, more than half of the investment volume was attributable to international investors. A good half of the investment volume in 2025 was generated in the top seven markets, with Berlin clearly leading the way as in previous years, followed by Munich and Hamburg.
Operating market environment drives investor demand
The improved operating environment, supported by rising overnight stays and a recovery in business travel, led to greater confidence and a broader investor base. ‘The hotel market made an impressive comeback in 2025. Investors clearly recognised the recovery in operating figures and once again invested more capital,’ said Christine Mayer, Head of Hotel Valuation Germany & Austria at Cushman & Wakefield.
Among the largest deals in the fourth quarter of 2025 was the sale of the 25hours Hotel ‘The Circle’ as part of the Gerling Garden in Cologne to Deka. The 207-room hotel opened in 2018 in the former headquarters of the Gerling Group. In addition, a portfolio comprising four InterCity hotels was sold by DWS to Leonardo Hotels. Following planned renovations, which will take place during ongoing operations, the hotels will also be operated under the Leonardo Hotels brand in future.
Mayer continues: "The significant upturn in the market in the first three quarters of 2025 has flattened somewhat in the fourth quarter, with no year-end rally. Berlin, Munich and Hamburg, which are also the leaders in terms of key business indicators such as occupancy and average room revenue. Value-add and operator-free hotels dominate the market."
The prime yields for hotel investments have not changed compared to the previous quarter. They remain at 5.50 per cent, as they have been since the end of 2023.
Christine Mayer on the outlook for the hotel investment market: ‘The significant upturn in the hotel segment is a strong signal for the overall market. The increase in transaction volume shows that risk and return expectations are once again better aligned. We see further potential for 2026, particularly from international capital.’
