The German branded hotel market is undergoing a period of structural change, as evidenced by the latest analysis from the PKF hospitality group. The annual study, which surveys hotel brands with at least ten properties in Germany by number of hotels and rooms, highlights a concentration of growth in the economy segment. The survey was conducted as of 31st March and also includes a retrospective look at the top 10 hotel brands over the past five years.
B&B HOTELS leads the ranking with 240 properties, thus remaining the brand with the largest hotel portfolio in Germany. The company added 15 establishments compared to the previous year. Following in the ranking are Best Western with 123 hotels and Mercure with 87 properties. Premier Inn has moved up to fourth place with 68 hotels, followed by Motel One with 65 and ibis with 64 hotels. The most significant expansion within the last year was shown by the IHG brand Garner, which grew from 18 to 41 properties, thus opening 23 new locations. B&B HOTELS also recorded an increase of 15 properties, elaya/Arthotel ANA by twelve, and DORMERO by nine.
Conversely, some brands reduced their portfolios. Best Western experienced the largest decline with nine hotels, while IntercityHotel, NH Hotels, ibis, and Mercure also minimised their presence. Ulrike Schüler, Managing Director and Head of Germany at the PKF hospitality group, noted that the German branded hotel market was not growing homogeneously, but rather its structure was changing. She emphasised the intensity of competition for scalable and clearly positioned concepts, especially in the economy segment, where brands were expanding, existing properties were being repositioned, and portfolios reorganised.
Dominance of the Economy Segment and Long-Term Shifts
Although the midscale segment still accounts for the largest share of the German branded hotel market with approximately 37 percent of the surveyed hotels, the strongest momentum comes from the economy sector. This segment recorded an increase of 44 hotels compared to the previous year. Key drivers of this development were Garner with 23 additional properties, Coffee Fellows Hotels with eight, Premier Inn with seven, and Motel One with four properties. The budget segment also showed a net increase of nine hotels.
- —Economy segment: Increase of 4,388 rooms, reaching a 32.6 percent market share.
- —Midscale segment: Remains the largest segment with 34.5 percent despite declining room numbers.
- —B&B HOTELS: Leads the room ranking with 24,731 rooms.
- —Premier Inn: More than doubling its capacity from 6,155 to 12,423 rooms between 2022 and 2026.
Room capacities show a similar picture of market movement. B&B HOTELS also leads this ranking with 24,731 rooms, followed by Motel One with 18,239 rooms. Best Western (12,761), Mercure (12,572), and Premier Inn (12,423) complete the top positions. The economy segment recorded the largest increase with a gain of 4,388 rooms, now accounting for 32.6 percent of the total capacity. The midscale segment remains the largest with a 34.5 percent market share, but experienced declining room numbers.
Five-Year Comparison Reveals Sustainable Market Development
The five-year comparison, examined in detail for the first time, highlights sustainable market changes. Among the current top 10 brands, Premier Inn increased its number of properties from 36 to 68 since 2022, representing an 89 percent increase. DORMERO grew from 28 to 46 properties (64 percent) in the same period, while B&B HOTELS expanded from 151 to 240 properties (59 percent). Conversely, brands such as ibis saw a decline of 24 percent, Best Western by 20 percent, and Mercure by eleven percent. In terms of room numbers, the shifts are even more pronounced. Premier Inn doubled its capacity between 2022 and 2026 to 12,423 rooms. B&B HOTELS increased by 55 percent to 24,731 rooms and Holiday Inn – the niu by 44 percent to 8,869 rooms.
Ulrike Schüler concluded by emphasising that the five-year comparison showed that these were not merely short-term shifts. Some brands had significantly expanded their presence in Germany, while established brands were losing properties and capacities. This was leading to a shift in market weights. She also pointed out that events such as insolvencies and brand changes since the survey date had led to further developments, the effects of which would be evident in the next ranking.
