- Transaction volume of almost €395 million in Q1 2025, up 55% on Q1 2024
- International investors dominate the market
- Prime yields remain at 5.50 per cent
Cushman & Wakefield, one of the world's leading real estate consultancies, recorded a total transaction volume of EUR 395 million in the German hotel segment in Q1 2025. This corresponds to an increase of 55 per cent compared to the previous year. Despite this increase, the transaction volume was still around 35 per cent below the 10-year average.
The transactions in the 1st quarter are made up almost exclusively of individual deals. These included, among others:
- The sale of the Adina Hotel in Hamburg's Speicherstadt district with 202 rooms. The hotel, which opened in 2017, was sold by Hausinvest Fonds to PGIM.
- The sale of the Pullman Hotel Cologne to the Swedish Pandox Group. The 275-room hotel was sold for around EUR 66 million by an institutional fund of Art-Invest and is to be renovated and repositioned.
- In addition, the twin Ibis / Ibis Budget Hotel Hamburg City was sold by Württembergische Lebensversicherung to AccorInvest. Of the 448 rooms in total, 252 are attributable to the Ibis brand and 196 to the Ibis Budget brand.
Q1 2025 at a glance:
- Prime yields for hotel investments remain unchanged at 5.50 per cent.
- More than half (just under 60 per cent) of the transaction volume was attributable to foreign investors.
- There were no notable portfolio transactions in the 1st quarter; the proportion of individual transactions was over 95%.
- The majority of the investment volume in Q1 2025 (around two thirds) was generated in the top 7 markets, with Hamburg clearly leading the way.
- The hotel segment accounted for 6% of the total German commercial property transaction volume in the first three months of 2025 (€6.13 billion), which was higher than in the same period of the previous year (Q1 2024: 5%). At +55%, the increase in the hotel investment market was therefore significantly higher than the increase in the overall commercial transaction volume (+9%).
Christine Mayer, Head of Hotel Valuation Germany & Austria at Cushman & Wakefield, on the outlook for the investment market in the hotel segment: ‘Owner-operators continue to be among the most active buyer groups. Even though the 10-year average was significantly undercut in the 1st quarter, a clear revitalisation of the market is noticeable. Individual transactions characterised the first quarter, as they did in 2024 as a whole.’
