Hotel Properties Germany.
The general increase in flexibility in the working world has also led to a change in holiday behaviour. In the past, summer and winter holidays were mainly used for holiday trips, but nowadays it is short holidays that are spread out over the year. This is not only good for the tourism industry, which can look forward to a better utilisation of capacity that goes beyond the seasons. It's just as good for the hotel property market. The special real estate hotel is becoming increasingly attractive for investors and investors.
OVERNIGHT STAYS AT THE 500 MILLION MARK
According to the statistical figures, German cities have recorded a high increase in overnight stays over the last 10 years. In 2016 alone, 447.3 million overnight stays were reported by the various accommodation establishments. On average, the number of overnight stays in Germany rose by 2.73 % per year between 2006 and 2016.
This continuous increase is due to several factors. The Federal Republic of Germany has been a very safe and clean country to travel in since its inception. This makes them equally popular with holidaymakers and business travellers. In addition, the German cities offer their guests very attractive events. Congresses, trade fairs, exhibitions and numerous events of all kinds. The world's largest trade fair grounds are located in Hanover. Frankfurt, Cologne and Düsseldorf are also among the 7 largest providers of trade fair venues worldwide.
WHAT IS THE SITUATION ON THE HOTEL MARKET LIKE?
The Federal Republic of Germany has 46,630 accommodation establishments with more than 540,000 employees (as of 2014). Approximately 60% of all hotels are in the 3-star category. After all, around 30% of the companies have 4 stars. A certain proportion of hotels deliberately refrains from staggering, not for fear of poor rating, but because this type of classification is regarded as obsolete and sometimes does not correspond to reality.
Room prices are still considered to be an index of market development. These can vary considerably within Europe. For example, Moscow's hoteliers had to accept a sharp drop in prices in 2015. In the same year, however, they rose sharply in major German cities. Compared to other European cities such as Amsterdam, Milan or Stockholm, however, German room rates are still very moderate.
VERY POPULAR: HOTEL PROPERTIES
The booming tourism market is also having an impact on the speciality of hotel properties. Long-term low interest rates and the resulting pressure on investors to invest ensure a stronger entry into this business. Hotel properties in attractive locations such as Frankfurt, Munich, Hamburg and Berlin have gained significantly in value as investments.
Internationally, however, German hotel properties are still valued very low. Munich is worth about 290,000 euros for the hotel room, while Paris, the number one in the ranking, has more than 700,000 euros per room. In a rising market, Germany therefore still offers a lot of room for growth in a timely entry into investment. Especially since German hotel properties in particular pose low risks.