Frankfurt am Main,

Strong uptrend in hotel investment volume

  • Hotel investment volume at €1.9 billion in the first half of 2018 – up 9.1 percent year on year

  • Great interest of international investors

  • Investment activities focus on prime locations


The German hotel investment market developed astonishingly well in the first half of 2018, reporting a transaction volume of €1.9 billion on Germany’s hotel transaction market. This result is 9.1 percent higher than the year-earlier level compared with the first quarter that was still 41 percent lower year on year. The result is principally attributable to the sale of a number of large single properties. This is the conclusion of a current analysis prepared by the commercial real estate services company CBRE.

Olivia Kaussen, Head of Hotels Germany
The German hotel investment market holds great appeal for investors. Above all, international investors recently proved to be very active.
Olivia Kaussen, Head of Hotels Germany

. In comparison with the first half of 2017, international players raised their share in the hotel investment market by 10 percentage points to 54 percent. “In the second quarter, we registered a number of large single transactions of existing properties that made up the major part of the investment volume. These properties were bought mainly by foreign investors.” For instance, Aroundtown, a company domiciled in Luxembourg, bought the Hilton Berlin for €297 million and British investment company Invesco acquired the Leonardo Royal Munich for €157 million. One of the few portfolios from the recent quarter was also bought by an international investor. The Fico Corporation sold this portfolio comprising seven hotels and 842 rooms in hotels of the Days Inn, Ibis, Tryp by Wyndham and Wyndham Garden brands for €58 million to Swedish Fastighets AB Balder. “Similarly, the large-scale acquisitions of international investors resulted in an average investment volume per deal of almost €66.5 million, as opposed to domestic investors where this figure stands at just under €28.9 million,” Kaussen explains.

Investors setting their sights on top locations and developments

Developments continue to be hugely significant due to the short supply and accounted for just under one fifth of the entire transaction volume in the first half year. In addition, investors have again increasingly set their sights on primary locations. As a result, an overall investment volume of around €1.5 billion was registered in the Top locations, representing around 76 percent of the entire volume, reflecting an increase of 12 percentage points compared with the year-earlier period.

Buyers from abroad with their increasingly aggressive pricing are expected to put pressure on the market in the future as well and fuel competition. Despite the strong first half year, the transaction volume in the full year 2018 is unlikely to achieve the year-earlier result of €4 billion due to the short supply.

German hotel investment market H1 2018






Source: CBRE Research, Q2 2018.

Hotel transaction volume since 2010











Source: CBRE Research, Q2 2018.

Hotel investment market – buyer groups











Source: CBRE Research, Q2 2018.


Olivia Kaussen
Head of Hotels Germany
+49 (0)89 24 20 60 25

Lorina Callenberg
Senior Analyst
+49 (0)89 24 20 60 30

Jan Schwarze
Associate Director Research
+49 (0)69 17 00 77 150



More information on CBRE:

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide.

CBRE offers a broad range of integrated services for the entire lifecycle of a property, from strategic and technical advice such as in sales and acquisitions or renting and letting, to managing and valuing properties to portfolio, transaction, project and facility management. CBRE offers individual advice for all asset classes from a single source.

Since 1973, CBRE Germany has been represented by its head office in Frankfurt am Main; there are further branch offices in Berlin, Düsseldorf, Essen, Hamburg, Cologne, Munich, Nuremberg and Stuttgart.