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Slow first quarter but initial signs of recovery in the German hotel real estate investment market

Verena Bauer • 11/04/2024

International real estate consultancy firm Cushman & Wakefield (C&W) recorded a total hotel transaction volume of EUR 260 million in the first quarter of 2024. This represents an increase of 30 percent compared to the previous year. A major contributor to the result was the sale of the 5-star Hotel de Rome in Berlin. Transaction activity was otherwise subdued, with only five further transactions exceeding the EUR 5 million mark. As a result, transaction volume was around 60 percent below the 10-year average. 

Prime yields have remained unchanged compared to the end of 2023, remaining at 5.50 percent. In the 1st quarter of 2023, the hotel prime yield was 4.80 percent.

The largest deals in Q1 2024 included:

  • The sale of the 145-room Hotel de Rome in Berlin by the Singaporean sovereign wealth funds GIC and Caleus to Italian investor Gruppo Statuto for around EUR 145 million. The operating lease with the Rocco Forte Group is about to expire. 

  • The sale of the 109-room B&B Hotel Frankfurt West to a special AIF managed by Imaxxam for Union Investment Institutional Property. The lease with B&B runs until 2042. The seller was Frankfurt-based a.a.a. Aktiengesellschaft Allgemeine Anlagenverwaltung.

  • The sale of 30 Numa serviced apartments via a residential and commercial building transaction involving Am Wehrhahn 43 in Düsseldorf to the family office Wilhelm von Opel'sche Forst- und Grundstücksverwaltung. The seller was developer Atenor.

Josef Filser, Head of Hospitality Germany & Austria at C&W, on the outlook for the investment market: With the exception of the Hotel de Rome transaction, activity was primarily limited to smaller and operator-free sales. We expect a slight improvement in transaction activity in the second half of the year with some larger deals in the marketing or review phase. In addition, lower prices and stabilising interest rates are making investment in the sector attractive again. Private equity investors and family offices will provide the bulk of the capital here.


  Hotel real estate investment market Q1 2024


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