INVESTMENT ACTIVITY
The German resort funding market confirmed a out of the ordinary enlarge in transaction quantity in H1 2025 compared to H1 2024, virtually reaching the total annual quantity of 2024. On the opposite hand, the market remains to be critically dead the pre-COVID levels.
The funding task in H1 2025 became as soon as pushed by single-asset transactions, such because the Mandarin Oriental in Munich. This deal has discipline a brand contemporary model-per-room file, reportedly amounting to approximately €2M per room. Overall, greater than half of the transaction quantity throughout H1 2025 became as soon as concentrated within the high-5 cities.
PRIME YIELDS
In the principle half of 2025, high yields remained mostly stable, albeit some excessive-profile transactions of trophy sources commanded sharper yields. The investor appetite for resort sources has elevated attributable to the soundness of the hospitality market, with resilient demand and sound trend of KPIs.
SUPPLY & DEMAND
Germany’s resort market is expanding in 2025, with over 15,000 contemporary rooms anticipated to open by the high of the 365 days, within the primary resort brands on my own. There had been also quite loads of necessary re-openings throughout all segments, akin to Radisson Sequence Berlin (427 rooms), Kimpton Frankfurt (155) or Motel One Munich Hauptbahnhof (386). Furthermore, a competitive dynamic is unfolding, marked by M&As, stamp changes, and strategic partnerships.
PERFORMANCE
In 2024, RevPAR in Germany grew impressively by 6.8% YoY, however this comparatively reversed in H1 2025. RevPAR declined by 1.0% attributable to a 1.8% YoY topple in occupancy. On the opposite hand, performance amongst the Top-5 cities assorted vastly, with Munich recording a substantial development of +19.2%, whereas RevPAR in Düsseldorf sharply declined (-22.2%), attributable to the change dazzling cycle.
