Hotel operators in Germany, Austria, and Switzerland are facing continuously high pressure on margins and cash flow. A current survey reveals that increased cost pressure, particularly due to higher rents, can no longer be offset solely by adjusting room rates. This is leading to ongoing strain on operational results within the industry.
The study “Select Hotel Operator Monitor,” now conducted for the third time, sheds light on this development. Fifty-one operating companies from the DACH region participated in the survey, which took place from April to June 2026. A central finding is that long-term lease durations do not allow for a reliable statement on the actual economic viability of both the hotel properties and the operators themselves.
In a competitive environment, the necessity to increase room rates means that guests will only accept this if additional services and higher comfort are offered simultaneously. This implies an extra investment burden and operational challenge for businesses to enforce pricing in the market.
Owners Facing New Challenges
For property owners, this means that traditional measures such as comprehensive investments in the building fabric (CapEx) or a change of brand are not sufficient to secure the profitability of their hotel properties. Instead, a deeper knowledge of the operational key figures of the respective operating companies is considered crucial for making informed decisions.
Tina Froböse, Managing Partner at Select, pointed out that, for the first time compared to the previous two years, long-term trends are observable in the German-speaking operator market. She emphasised that the viability of business models does not depend on individual property refurbishments, the choice of specific brands, or merely on rising room rates. There is an increased need for operators who, in collaboration with owners, demonstrate innovative strength and convincing profitability across their entire portfolio.
Key Findings of the Operator Survey
- —Continuous pressure on hotel operators' margins and cash flows.
- —Rising rents can no longer be fully compensated by higher room rates.
- —Long-term lease agreements offer no guarantee of economic viability.
- —Owners require deeper insights into operators' operational key figures.
These developments underscore the necessity for strategic realignment and more intensive cooperation between owners and operators to ensure the future viability of hotel properties in the DACH region. An isolated view of individual measures no longer meets the complex market conditions.
