- Germany is robust: stable rates, catch-up potential in terms of capacity utilisation and solid medium-term earnings prospects
- Europe is picking up noticeably: selective return of international capital, continued subdued momentum in Germany
- The focus is shifting: operator quality, contract structures and operational performance are increasingly determining performance
- The transaction market is picking up speed: increasingly international and creative deal structures as a sign of a further upturn in the course of the year
In the European context, the hotel investment market is showing a noticeable tailwind at the beginning of 2026. The ongoing recovery of international capital flows to Europe and increasing investor activity led to a significantly higher level of transactions in the first quarter.
In Germany, on the other hand, the momentum remains subdued. With a transaction volume of around EUR 234 million, the result in the first quarter is below the long-term average. The decisive factor here is not so much a lack of investment opportunities as a continuing – albeit decreasing – purchase price expectation delta as well as the increased complexity of the assets, especially in the analysis and evaluation of the underlying operator and operating concepts.
“Operator transformation is currently the central value driver in the market. Investors are no longer focusing solely on buildings, but on scalable, resilient operating models,” says Andreas Ewald, Head of Hotel at Colliers.
The current market movements illustrate a structural change in the valuation of hotel properties: operators, concepts and contract structures are increasingly shaping investment decisions more strongly than the property itself. Investors are increasingly focusing on the operating revenue logic, in particular on the operator’s creditworthiness and scalability, the contract type and the transparency of CapEx planning. In addition, topics such as cost development, indexation mechanisms and exit flexibility are gaining in importance.
Consolidation and new partnership models
At the same time, consolidation in the operator environment continues. Platforms with scalable brands as well as operators with strong cost and technology expertise continue to expand their market position.
At the same time, structured partnerships as well as platform and joint venture models are coming into focus and are increasingly shaping the market structure.
International capital takes a differentiated view of Germany
International Capital is once again focusing more on the German hotel market, but under changed conditions. Germany continues to be perceived as a stable market, but at the same time regulatory requirements, labour-cost-intensive structures and a more moderate rate level lead to a differentiated risk assessment.
“If you want to successfully implement transactions today, you have to think about operator strategy, contract structure and capital requirements in an integrated way – this is exactly where the decisive competitive advantages arise,” Ewald continues.
Investor activity increases – market recovery expected in the course of the year
From Colliers’ point of view, however, there are signs of a clear revival in investor activity. A growing number of international investors are intensively analysing German hotel assets, with different strategies and risk profiles. At the same time, more and more southern European owner-operator structures are examining market entry or are already implementing it.
For 2026 as a whole, there are signs of a gradual revival in transaction activity. While Europe is already benefiting from high liquidity and increasing investor activity, ongoing geopolitical uncertainties and volatile developments in other global markets are leading to increased reallocation of international capital. Europe is thus moving more into the focus of international investors as a comparatively stable investment location.
The first quarter already showed that transactions are increasingly being implemented in a structured and differentiated manner – especially for assets with operational challenges or in restructuring situations. This suggests that the current pricing phase is likely to translate into concrete trades in the coming quarters.
Complexity requires integrated transaction advice
In this market environment, access to national and international market participants as well as close networking with investor, operator and financing circles is a decisive success factor.
The focus is on the economic and operational classification of the assets, in particular the assessment of risks, the analysis of operator and contract structures and the assessment of the viability of the underlying concepts. Especially in the case of more complex transactions, consistent and resilient preparation is crucial for the further course of the process.
