In the first half of 2026, the German hotel investment market reached an investment volume of 720.9 million Euros. This result is 23.8 per cent below the figure for the same period last year. Compared to the average of the past five years, however, the market remains at a solid level. A major reason for the lower transaction volume is the absence of large-volume deals so far. Despite this aspect, market activity remains robust, which is evident in a higher number of transactions compared to the previous year. Investor interest is currently focused primarily on smaller transactions and locations beyond the established investment centres.
Developments in the capital markets led to a slight adjustment in the prime net yield, which rose by 0.15 percentage points to 5.25 per cent in the second quarter. These data come from a current analysis by global real estate service provider CBRE. Hotels are increasingly perceived as a strategic and long-term asset class, combining fundamental stability with potential for value appreciation. Geopolitical uncertainties, however, led to delays in individual processes and a temporarily more cautious initiation of new transactions, as explained by Helena Rickmers, Head of Hotel Investment at CBRE in Germany.
Focus on Value Creation and Active Buyer Groups
The assessment of the hotel investment market is underscored by the CBRE European Hotel Investor Intentions Survey 2026. According to this, the majority of surveyed investors intend to either maintain or expand their allocation in the hotel sector. Market activity is dominated by investors seeking additional value creation through repositioning and active asset management. Consequently, most hotels changed hands unencumbered by operator agreements, offering buyers comprehensive flexibility to exploit existing value-add potential. Investors continue to act selectively and disciplined. Outside the prime segment, this results in greater yield differentiation, depending on location, property quality and risk profile.
The most active buyer groups in the first half of the year included asset and fund managers, particularly from Anglo-Saxon regions, as well as property companies and private investors. Owner-operators used market activity for targeted smaller acquisitions to expand their existing portfolios.
Positive Fundamentals and Outlook
The operational fundamentals of the German hotel market continue to develop positively. A new record of 497.5 million overnight stays was reached in 2025. This moderate upward trend continued at the beginning of 2026. The stable development in the accommodation market thus forms an important basis for the sustained interest in hotel investments. Ms. Rickmers predicted that transaction activity, particularly in the large-volume segment, should pick up again as the overall economic environment further stabilises and uncertainties diminish. The high number of ongoing due diligence processes indicates that many investors are actively seeking suitable opportunities.
