Germany’s hotel investment market sees a revival in 2025, with capital flowing back in after muted years. Transaction volume rises by 68% to €1.58 billion, but remains below average. Prime hotel yields stable at 5.5%. Major deals in top seven cities show cautious optimism, but operational challenges persist.

Revenues in German hotels drop by 9.3% in July 2025. Survey reveals concerns over bookings and potential losses. Rising costs and price-sensitive guests add pressure. Development Index improves, but Operations Index remains subdued. Investors focus on cash flow resilience amid growing sector divide.

Strong performance seen in lean budget and luxury hotels, while midscale properties face competition. Over 15,000 new rooms set to open in 2025. Investors adopt selective strategies in core city locations. Market growth requires careful analysis of supply and demand dynamics.

Germany remains a key European hotel market attracting global capital. Investors return cautiously due to high risks. Success in 2025 hinges on disciplined asset selection, realistic revenue expectations, and tight cost control. Market recovery uneven across segments, prompting strategic approaches for sustainable growth.

Read more at Yahoo Finance: Investors return to German hotels, but risks remain