Hotel investments experience slight decline


The German hotel investment market shrank somewhat last year, even as commercial real estate transactions hit a new record, according to the four big brokerage houses. BNP Paribas Real Estate and Colliers International report a transaction volume of €4bn (or just slightly higher) and are observing a 4%–5% decline. CBRE and JLL report having missed the €4bn mark, while JLL even calculates a 7% decline to €3.85bn. This does not indicate weakening interest in the hotel asset class: “Investors’ hands are tied when there are no suitable (portfolio) offers on the market,” explains JLL hotel specialist Stefan Giesemann. The portfolio share of transaction volume fell to 16%, half of the previous year’s 31%, according to Colliers. BNPPRE, however, suggests that a new turnover record of €3.2bn was achieved if one only looks at individual deals. CBRE states that the share of investments by foreign buyers, due to their preference for large transactions, fell by 9 percentage points to 46%.

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