The situation in the German hotel investment market is complex, and the mood is differentiated. While the prospects for their own companies and the industry as a whole are improving slightly compared to the previous year, the revenue development of the hotels is uncertain. The polarization of trends is intensifying.
This is shown by the results of the 13th HospitalityInside Investment BAROMETER survey 2025, which is initiated every autumn by the Augsburg-based trade magazine and Union Investment.
Of all four indices, the Development Index is currently making significant gains and is easily compensating for its loss from the previous year. 30% rate the development as good or very good (2025: 17%). Meanwhile, the Operations Index is under pressure. It has continued its downward slide since 2023. Expectations regarding the revenue development of the hotels continue to fall. Only 39% expect good and very good (2024: 55%). 30% expect a bad development (2024: 19%). Nevertheless, the overall index reflects a moderate recovery and selectively expects sentiment to brighten.
Accordingly, investors examine the markets according to their attractiveness and hotel categories according to their investment ability. Southern Europe scores highly – especially Spain with its strong business and leisure segment. However, due to an increasing yield compression, buyers have “spilled over” to Italy. DACH markets as home markets are also in greater demand. In the hotel categories, investors are focusing on budget/economy hotels as well as luxury and lifestyle concepts.
“As with other operator properties, such as retail, polarization in the hotel industry is advancing. In fact, cost-conscious concepts, such as those in the budget hotel industry on the one hand, and hotel concepts in the more price-elastic luxury segment on the other, are generally more successful than concepts in the midscale hotel industry,” says Andreas Löcher, Head of Investment Management Operational at Union Investment. In the midscale hotel industry, according to Löcher, it is therefore particularly important to have a high quality location and a strong brand operator mix in order to survive well in the market.
85% of hoteliers, owners/investors and consultants took part in the survey. The majority of the participants (56%) focused their activities on the DACH region. The survey was conducted between September 26 and October 28, 2025.
