The hotel investment market in Germany showed a differentiated development in the first nine months of 2026. While the transaction volume decreased compared to the same period last year, the number of deals increased significantly. An analysis by BNP Paribas Real Estate revealed a transaction volume of approximately EUR 1 billion, which corresponds to a 27 per cent reduction compared to the strong previous year. In contrast, the number of deals rose by 27 per cent, resulting in the highest number of sales since the first three quarters of 2022.
Alexander Trobitz, Managing Director and Head of Hotel Services at BNP Paribas Real Estate GmbH, noted that market dynamics in the hotel sector remain high but are currently structured in a more granular way. This is reflected in an increase of around 30 per cent across all size categories up to EUR 50 million. In contrast, the turnover from deal sizes over EUR 50 million decreased by almost 65 per cent. Larger transactions included the sale of eleven Pentahotels in Germany, Belgium, and France, as well as two Intercity and Excelsior Hotels in Frankfurt and Munich, which were advised by BNPPRE.
A-Cities and International Investors
Investor interest in hotel properties in Germany's A-locations, which are strong in tourism and economy, remains high. This is reflected in over 20 successfully concluded transactions. Despite the activity, the investment volume in the top 7 cities totalled approximately EUR 508 million, representing a decline of almost 37 per cent compared to the same period last year. Notably, the large-volume core deals that were significant in the previous year are missing here. A limited supply of premium properties and complex acquisition processes currently restrict higher transaction frequencies in this segment.
When considering individual cities, Berlin stands out with a volume of EUR 186 million, boosted by a multitude of smaller properties in various formats. Munich also recorded extensive investments of EUR 131 million, particularly through the sale of the Excelsior Hotel and transactions in the serviced apartment sector. Frankfurt reached EUR 95 million, while Hamburg and Düsseldorf each recorded EUR 37 million, and Cologne EUR 22 million. Performance indicators, especially guest overnight stays, continue to send positive signals; five of the seven examined tourism metropolises reported stable or slightly rising half-year figures compared to the previous year.
Outlook for the Full Year
The prospects for the German hotel investment market are assessed as positive, primarily supported by stable guest numbers and positively developing key performance indicators such as occupancy rates, ADR, and RevPAR. Thriving domestic tourism contributed significantly to this, reaching a new record high for nationwide guest overnight stays by mid-year. Investors continue to act selectively; operators, concept, and performance are central to acquisition decisions, followed by location, market, and property quality for pricing. Alexander Trobitz predicts a nationwide hotel investment volume of approximately EUR 1.5 billion for the full year 2026. He expects deal momentum to increase in the fourth quarter and the volume to rise significantly due to major deals.
