The investable hotel market in Germany has grown to €61bn over the last 12 years and even during the financial crisis the market expanded slightly, according to the latest calculations by Union Investment and bulwiengesa, which show that the investable hotel market in Germany increased in value by around 6.3% in 2019.
As in previous years, growth in 2019 (+9.5% in 2018) was due to sustained strong new-build activity in the hotel sector and increasing asset values, reflecting the strong tourism and property market environment in Germany in 2019.
“With coronavirus now dominating the headlines, it’s easy to forget that tourism has been one of the fastest-growing industries over the past 12 years. 2019 was an outstanding year, with nearly half a billion overnight stays in Germany,” explained Dierk Freitag, departmental head and partner at bulwiengesa. “Up to and including last year, city hotels benefited significantly from trade show and conference business, for which Germany offers excellent infrastructure as one of the world’s leading destinations for trade fairs and exhibitions. On top of that, the holiday hotel sector recorded an unprecedented level of domestic demand in 2019.”
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