The German hotel investment market reached an investment volume of 720.9 million euros in the first half of 2026, 23.8 percent below the previous year’s figure. Compared to the average of the past five years, however, the market remained at a solid level. The main reason for the lower volume was the lack of large-volume transactions to date. Nevertheless, market activity remained high: significantly more trades than in the same period last year underline the continued investor interest, which is currently concentrated primarily on smaller transactions and locations outside the established investment centres. Against the backdrop of developments on the capital markets, the gross prime yield rose slightly by 0.15 percentage points to 5.25 percent in the second quarter. These are the latest results of an analysis by global real estate service provider CBRE.
“Hotels remain a sought-after asset class and are increasingly perceived as a strategic and long-term asset class that combines stable fundamentals with attractive value appreciation potential. However, the momentum has recently been somewhat slower than at the beginning of the year, as geopolitical uncertainties have led to individual processes being completed later and new transactions being initiated more cautiously at times,” says Helena Rickmers, Head of Hotel Investment at CBRE in Germany.
The most active buyer groups in the first half of the year included asset and fund managers, especially from the Anglo-Saxon world, as well as real estate companies and private investors. In addition, self-operators are also taking advantage of the current market environment to expand their existing portfolios in a targeted manner through smaller acquisitions.
Fundamentals support the investment market
The operational fundamentals of the German hotel market continue to develop positively. With 497.5 million overnight stays, a new high was reached in 2025. The increase continued moderately at the beginning of 2026. The stable development in the accommodation market thus continues to form an important basis for the continuing high interest in hotel investments.
Outlook for the second half of 2026
“As soon as the macroeconomic environment stabilises further and uncertainties subside, this is likely to be reflected more strongly in transaction activity, especially in the large-volume segment. The high number of ongoing acquisition reviews shows that many investors are already actively looking for suitable opportunities,” says Rickmers.
