24. Januar 2012 
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German hotel investment market to remain stable in 2012 despite the Eurozone crisis
CBRE Hotels reflects on the positive performance of the German hotel investment market in 2011. Hotel transaction volume grew for the second consecutive year. In 2010 transaction volume increased by more than 100% on the previous year and CBRE Hotels recorded a further 22.4% increase in 2011, to €1.1 billion. This includes small transactions below €10million and site acquisitions. Excluding the latter, transaction volume was €950million, up from €800million in 2010.
Olivia Kaussen, Head of CBRE Hotels Germany and CEE said: “With a trading volume of €1.1 billion the German hotel investment market performed very well in 2011. Germany remains one of the most important hotel investment markets in Europe. In particular Frankfurt, Continental Europe’s financial centre, was the focus for investors last year. The recent market turmoil caused by the Euro debt crisis and the emerging difficulties in the banking sector in the second half of 2011 prevented the transaction volume to increase any further.”
Investors’ focus was on upscale hotels which accounted for approximately 90% of total transaction volume. Noticeably, the 177 bedroom Grand SPA Resort A-ROSA Sylt was bought for over €60 million by Deutsche Immobilien Invest, representing the first considerable resort hotel transaction in the past year.
Similarly, other German hotel chain assets attracted attention from investors; the 322 bedroom Steigenberger Airport Hotel project at Berlin-Brandenburg purchased by Swiss Acron AG and the 177 bedroom Steigenberger Grandhotel Handelshof in Leipzig purchased by a private investor.
Due to several high volume upscale single asset transactions, the average transaction volume increased by 30% to approximately €30 million per transaction.
The importance of Germany’s investment market was underlined by the dynamic investment activity of foreign investors who were responsible for approximately 60% of the transaction volume in 2011. 75% of foreign investors were from Europe – more specifically Norway, Great Britain and Switzerland – 25% were from outside of Europe, including Singapore, Lebanon and Israel.
The transaction volume from portfolio sales declined in 2011 with a share of only 17% of the total transaction volume. An NH Portfolio including three hotels in Germany and two in Austria was acquired by Invesco Real Estate. Two Mercure Hotels in Garmisch-Partenkrichen and Friedrichsdorf were acquired by Russian BSHR Investment. In addition, the InterContinental Frankfurt was acquired as part of a European portfolio.
Approximately two-thirds of the capital invested was in hotels run based subject to lease contracts. Especially German investors focussed mainly on leased hotels. An exception was Event Holding from Cologne who acquired the former Renaissance Hotel Munich in autumn 2011.
Olivia Kaussen, Head of CBRE Hotels Germany and CEE said: “With a trading volume of €1.1 billion the German hotel investment market performed very well in 2011. Germany remains one of the most important hotel investment markets in Europe. In particular Frankfurt, Continental Europe’s financial centre, was the focus for investors last year. The recent market turmoil caused by the Euro debt crisis and the emerging difficulties in the banking sector in the second half of 2011 prevented the transaction volume to increase any further.”
Investors’ focus was on upscale hotels which accounted for approximately 90% of total transaction volume. Noticeably, the 177 bedroom Grand SPA Resort A-ROSA Sylt was bought for over €60 million by Deutsche Immobilien Invest, representing the first considerable resort hotel transaction in the past year.
Similarly, other German hotel chain assets attracted attention from investors; the 322 bedroom Steigenberger Airport Hotel project at Berlin-Brandenburg purchased by Swiss Acron AG and the 177 bedroom Steigenberger Grandhotel Handelshof in Leipzig purchased by a private investor.
Due to several high volume upscale single asset transactions, the average transaction volume increased by 30% to approximately €30 million per transaction.
The importance of Germany’s investment market was underlined by the dynamic investment activity of foreign investors who were responsible for approximately 60% of the transaction volume in 2011. 75% of foreign investors were from Europe – more specifically Norway, Great Britain and Switzerland – 25% were from outside of Europe, including Singapore, Lebanon and Israel.
The transaction volume from portfolio sales declined in 2011 with a share of only 17% of the total transaction volume. An NH Portfolio including three hotels in Germany and two in Austria was acquired by Invesco Real Estate. Two Mercure Hotels in Garmisch-Partenkrichen and Friedrichsdorf were acquired by Russian BSHR Investment. In addition, the InterContinental Frankfurt was acquired as part of a European portfolio.
Approximately two-thirds of the capital invested was in hotels run based subject to lease contracts. Especially German investors focussed mainly on leased hotels. An exception was Event Holding from Cologne who acquired the former Renaissance Hotel Munich in autumn 2011.
