For the German hotel investment market, a transaction volume of around € 790 million can be reported for the first half of 2026. This is the result of the analysis by BNP Paribas Real Estate.
“The market as a whole is thus at the previous year’s level. The strong 2025 result, which was peppered with trophy asset transactions such as the Mandarin Oriental in Munich and the Steigenberger at the Chancellery in Berlin, is marginally missed by almost 4%. In particular, an accelerated second quarter with € 475 million placed contributed to the overall good interim result,” explains Alexander Trobitz, Managing Director and Head of Hotel Services at BNP Paribas Real Estate GmbH.
In a direct year-on-year comparison, the significantly increased transaction momentum is significant. For the first time since 2019, more than 50 contracts were signed at the end of the first half of the year. In the two periods of the previous year, there were around 35 contracts each and in 2023 only 28. The market is much busier across the board, but is largely driven by smaller transactions. As a result, the average deal volume currently amounts to only around €15 million and has thus been at this consistently low level since 2022 – with the exception of the first half of 2025.
Strong performance indicators as well as guest and overnight stay figures, which in many places are at or even above pre-Corona levels, are also convincing international investors of the German hotel investment market. Their market share currently amounts to 52%.
Munich and Berlin are by far the strongest markets, medium-sized deals are drivers of investment momentum
Munich and Berlin remain the strongest hotel investment locations nationwide. For Munich, an investment volume of around € 131 million (-50% compared to H1 2025) is recorded at the halfway point of the year. Berlin follows closely behind with around €128 million (-29%). While the aforementioned trophy assets had a positive impact on the interim result in the previous year, the market in both markets is currently characterised by small and medium-sized deals. In Munich, these include the sale of the Excelsior Hotel, which BNPPRE supports, as well as various investments in serviced apartments. In Hamburg (around €34 million, -32%) and Cologne (€22 million, -73%), the transaction volume was also unable to match the previous year’s level. The situation is different in Düsseldorf, where investment activity has picked up moderately at a low level (€ 22 million). From the field of locations, Frankfurt stands out positively. After three very low interim results in the years 2023 to 2025, a major transaction has now been successfully crossed the finish line for the first time.
The hotel investment market is broadly lively in the middle of the year. The size classes between €10 million and €100 million each contribute 21% to 25% or a total of two-thirds of the investment volume. Small deals account for a good 16% market share, deals in the three-digit million segment around 17%. The driver here was the sale of the nationwide Penta Hotel portfolio.
Prospects: convincing guest and overnight stay figures, lively second half of the investment year expected
The prospects for the German hotel investment market are quite promising. Strong user markets form the basis for attractive investment opportunities. The currently prospering domestic tourism is reflected in above-average guest and overnight stays in the first months of 2026. In the most sought-after holiday destinations as well as in the top destinations for business travel and city tourism, they are above last year’s and also pre-Corona levels. Convincing and continuously improving key performance indicators are proof of the positively developing profitability in the hospitality industry.
“The expanding range of attractive investment products should also have a supportive effect on market dynamics. The pipeline is full, especially in the mid-size volume, where buyers and sellers come together well in the ongoing challenging financing environment. There are also various transactions on the market beyond the €100 million mark. Despite the more expensive financing conditions in response to the interest rate turnaround in the wake of the Iran war and rising inflation, there is a good chance that some major deals will be successfully concluded before the end of the year, which will then also make a significant contribution to investment turnover. A full-year result at the previous year’s level, and thus on course for the €2 billion mark, is realistic,” says Alexander Trobitz.
