According to Savills, the transaction volume for hotel and accommodation properties from January to September totalled just under 971 million euros*. Compared with the same period last year, the transaction volume fell by 44 per cent. The number of transactions was a quarter lower than in the same period last year.
Sales of traditional hotel properties have dominated the market over the past three quarters. These accounted for just over 819 million euros, or 84 per cent, of the total transaction volume. Serviced apartments achieved a transaction volume of 140 million euros, which could rise to its highest level since 2019 by the end of the year.
Tina Haller, Director of Capital Markets and Head of Hotels Germany at Savills in Germany, comments on market developments as follows: “Following a strong second quarter, comparatively few transactions were completed in the investment market for hotel and accommodation properties in the third quarter. However, we expect a noticeable expansion in the range of properties on offer in the coming months. In particular, challenges faced by some property funds are likely to result in further liquid and easily marketable hotel properties coming onto the market as part of portfolio restructuring. At the same time, investor interest remains high, particularly for established locations, successful operating models and properties with potential for value creation. The combination of a growing supply, stable operational fundamentals and the continued availability of investment capital could provide the market with additional momentum in the coming quarters. We see an interesting development in the serviced apartments segment. After years of strong growth, more operator platforms are reaching operational maturity and can demonstrate robust performance data. This is gradually creating an investable track record, which facilitates the valuation of these still comparatively young operator and contractual models and is likely to attract new buyer groups to the segment in the future.”
* Excluding hotel and accommodation properties that form part of mixed-use neighbourhoods.
