In Q3, hotel investment in Germany was considerably higher than in 2014, according to BNP Paribas Real Estate. With a transaction volume of approx. €2.9 bln, the hotel investment market exceeded last years record by nearly 37%.
Germany’s Big Six locations (Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg and Munich), totalled just over half of the total hotel investment for Germany at €1.56 bln, all cities except Frankfurt noted y-o-y increases. The cities with the highest investment figures were Munich, Berlin, and Hamburg who were separated by only €20 mln. All three cities benefited from substantial transactions in the high double-digit or even triple-digit million range. The Sofitel Bayerpost in Munich and the convention hotel andel’s in Berlin are two examples of this.
The surge in hotel investment in Europe began some two years ago and is showing no signs of slowing down. According to research carried out by the World Travel & Tourism Council (WTTC), Travel & Tourism in Europe generates more income than automotive manufacturing, chemicals manufacturing, banking, agriculture, and the mining sector. This is evidenced by the renewal of AccorHotels partnership with Foncière des Régions for a further period of 12 years.
David Scowsill, President & CEO, WTTC, said: “Travel & Tourism is the second-fastest growing sector in Europe in terms of direct GDP after banking. Forecast to grow at 2.8% per annum over the next ten years, the sector’s growth will outpace the global economy, which is estimated to increase by 1.9% per annum over the next decade.”
Source: BNP Paribas Real Estate Holding GmbH
