The German hotel investment market continued its recovery in 2025 and achieved a transaction volume of around 1.66 billion euros. This means that the result is significantly higher than the previous year’s figure of 1.39 billion euros, which means growth of 19 percent. The hotel sector’s share of the total commercial transaction volume rose from five percent in 2024 to seven percent, underlining the growing importance of the type of use.
“We see a clear stabilization of factors and an approximate return to reliable valuation bases. Core products with resilient operator concepts, ideally direct leases, as well as properties with very good building fabric, long-term leases and strategically resilient locations were particularly in demand,” explains Sebastian Hoffmann, Associate Director Hotel at Colliers. “This development is also reflected in the structure of transactions: core and core-plus properties were in focus, while value-add properties are still looking for comparable transactions in pricing. Here, pricing is usually even more difficult than in the core segment.”
Market structure and transaction dynamics
The year 2025 was characterized by large-volume individual deals, which dominated the market with around 82 percent of the total volume. Portfolios contributed 18 percent, with the Keystone package representing the largest transaction with 17 hotels under the ibis and Mercure brands. In addition to trophy assets of over 100 million euros, the mid-range segment between 20 and 50 million euros gained noticeably in importance.
Regional focus and buyer groups
The highest volumes were accounted for in Munich, Berlin and Cologne. The market is thus building on the development of the previous year, in which the top locations had already come back into focus. The most active buyer groups were asset and fund managers, followed by private investors and family offices before owner-occupiers. The high proportion of German investors, who accounted for around two-thirds of the volume, remains striking.
Outlook: More dynamism and strategic repurposing
“The transactions carried out in 2025 now represent an important basis for comparison for the further upswing in the transaction market, which has been lacking in recent years,” explains Hoffmann. “For 2026, we expect a further revival and a transaction volume of over 1.8 billion euros. Conversions, especially from office space to hotels, remain a key growth area, offer considerable potential for investors and operators and remain the most complex challenge in implementation.”
