The TREUGAST Rating 2026 reflects the current challenges in the hotel market. Despite a marginally more positive assessment of the business situation by the Hospitality Index, market participants continue to rate the general conditions as strained. A subdued rate level combined with rising operating costs leads to a reduction in operating margins and increases the economic pressure on operating companies.
This manifested in an average decrease of approximately two rating points compared to the previous year for established companies with a long-standing rating track record. Some hotel companies were placed on the watchlist for a potential downgrade in the following year, while others could not maintain their previous rating and had to accept a downgrade. Nevertheless, six operators managed to secure a position on the watchlist for a potential upgrade, signalling positive impulses for further industry development.
AAA Rating Confirmed: B&B Hotels and Motel One
Motel One once again confidently maintained its AAA rating and sets standards in various assessment areas. In April 2025, the group opened its 100th hotel, Motel One Munich-Hauptbahnhof, and plans to open another 100 hotels within ten years. Eight new openings are planned for 2026, including market entry into Portugal with a property in Lisbon, as well as further locations in Vienna, Hanover, and Munich. By acquiring existing properties and integrating them into the new conversion brand Cloud One, Motel One is expanding its portfolio.
Group revenue showed growth of around eight per cent in 2025, exceeding the one-billion-euro mark for the first time. The entry of PAI Partners with a stake of approximately 80 per cent in the operational business in March 2025 marks a new chapter for Motel One. Potential optimisations in revenue management, digitalisation, and growth speed must now be realised to significantly increase company value. Analysts see great opportunities for Motel One to evolve from a national benchmark to an international player. However, the shift away from stable room rates and the increasing proportion of international hotels without the so-called “Motel One Bonus” in Germany also carry risks. Nevertheless, analysts emphasise that the management team around Stefan Lenze and Daniel Müller possesses the necessary expertise for company growth and Motel One will remain a reliable partner for hotel investors in the German market for the foreseeable future.
B&B Hotels, as one of the most profitable hotel chains in Germany, also confirmed its AAA rating. At the end of 2025, the group comprised approximately 240 hotels in Germany and, with owner Goldman Sachs, aims for 500 properties in the Central-Northern Europe region by 2030. Following expansion in 2024 through the acquisition of 30 hotels from the AccorInvest portfolio, the focus in 2025 was on the integration and modernisation of existing properties. A new development partnership with Garbe Commercial Living is set to generate up to 30 additional hotels. The original growth strategy of new builds in easily accessible locations has been expanded to include hotel acquisitions and conversions. Analysts will closely monitor the impact of this expanded strategy on the group's performance. Despite a waning market demand, B&B Hotels significantly increased revenue in Germany and continues to impress with above-average earning power within the budget segment. Its positioning under the motto “Value for People” and focus on operational excellence underpin the group's solid foundation.
New Market Entrants in Focus
The Odyssey Hotel Group debuts in this year's TREUGAST Rating with a solid BBB assessment. Founded in the Netherlands in 2012, the company operates as a white-label provider. Following the gradual acquisition of company shares by real estate investor ActivumSG between 2021 and 2024, Odyssey is preparing for a further scaling phase. Under the leadership of CEO Gonzalo Carpintero Navarro, the group plans to double its portfolio, which currently comprises 30 properties in Germany, the Netherlands, Belgium, Spain, Finland, and Sweden, by 2028. Germany forms the core market for the company, with 20 existing properties in A- to C-cities, predominantly in the midscale to upscale segment under Marriott, Accor, and Radisson brands. Operationally, performance is within the average of the relevant city hotel cluster, which is particularly attributable to its focus on limited-service concepts. The company's financial performance still shows potential for improvement, indicating a build-up phase following the takeover by ActivumSG. Analysts will closely monitor developments in the coming years.
- —Prism (OYO)
- —Vorreiter AG
Two further, divergently positioned hotel companies, Prism (OYO) and Vorreiter AG, which attracted attention through their market entry into Germany, will also be analysed by TREUGAST in the coming year.
