- 940 million transaction volume from Q1-Q3 2024
- Deals with operator-free properties dominate
- Prime yields remain at 5.50 per cent
Cushman & Wakefield, one of the world's largest property consultancies, recorded a total transaction volume of EUR 940 million in the German hotel segment from January to September 2024. This corresponds to an increase of 114 per cent compared to the same period last year. However, the transaction volume was still around 54 per cent below the 10-year average for the first three quarters of each year. One of the largest transactions of the year to date was the sale of Accor Invest's hotel portfolio to BC Partners Real Estate.
The prime yields for hotel investments have not changed since the beginning of the year. They are stable at 5.50 per cent.
The largest deals in the 3rd quarter of 2024 included, among others
- The sale of the 280-room Roomers Hotel, Autograph Collection in Munich to Elliott Investment Management. The seller was WP Carey. Elliot Investment Management also acquired the Max-Brown Hotel in Berlin.
- The sale of the Femina Palais in Berlin to Vivion. The former Ellington Hotel on Nürnberger Strasse was sold out of the Signa insolvency.
- In addition, Noordkant Investment Partners completed the first acquisition for its newly launched special AIF for holiday and city hotels in tourist locations with the purchase of the A-ROSA Collection Hotel Cêres am Meer in Binz on the island of Rügen.
Christine Mayer, Head of Hotel Valuation Germany & Austria at Cushman & Wakefield, on the outlook for the investment market: ‘Operator-free sales and takeovers by owner-operators continue to characterise the transaction market. An increase in transaction activity is noticeable, albeit still at a restrained level. International investors were dominant in the 3rd quarter and demonstrate confidence in the German market. The majority of transactions took place outside the top 7 markets.’
