The German hotel investment landscape is showing strong signs of recovery and renewed dynamism as we move through 2026. Overall, hotel investment volume surged by over 78% year-on-year, driven by a strengthening in buyer demand. Full-year figures for 2025 highlight Berlin (€638 million) and Munich (€516 million) as the top-performing cities in terms of transaction volume, underscoring their continued appeal to investors. 

While international investors have rediscovered the German hotel market, private investors and owner-operators continue to dominate transaction activity. These groups are leveraging repositioning opportunities and focusing on long-term value creation, particularly considering constrained new supply. Germany’s diverse market composition - from major urban centres to niche leisure destinations - continues to attract a wide range of investor profiles. Elevated construction and financing costs have limited new developments, creating favourable conditions for value-add strategies and asset repositioning. 

Hotel chains are actively expanding across luxury, economy, and extended-stay segments, responding to evolving traveller preferences. At the same time, digitalisation and AI-powered guest experience tools are being deployed to mitigate cost pressures, address labour shortages, and enhance personalisation.

Our team reports a steady uptick in asset valuations and commercial due diligence assignments, alongside heightened demand for feasibility and project development studies. This reflects growing investor interest in both existing assets and new developments, particularly those aligned with established operational models.