H&B CUSHMAN 11 en-uk-8.1

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ubdued transaction activity whilst operating markets continue their strong recovery.

In 2022 hotel transaction volumes amounted to €2 billion in Germany. This is 20% below the previous year’s figure and falls almost 60 per cent short of the 10-year average. The year was again characterized by single-property deals, contributing approximately 85% of transaction volume. Only four portfolio transactions were recorded, reflecting the challenge of financing larger volume deals. The weak momentum was due to a changing macro-economic environment with higher interest rates, inflation and fears of a recession. Investors and owners were also challenged by uncertainty around pricing. In contrast, in operating terms markets recovered significantly in 2022 from the effects of the Covid pandemic, with the country wide RevPAR already at 85% of 2019 levels. This was driven by a strong rise in average room rates. As a consequence of this, operators recorded highly positive results in the final quarter of 2022 with a renewed focus on expansion and development. Ongoing strong demand growth is expected to have a positive knock-on effect on investor sentiment going forward.

Germany Josef Filser Head of Hospitality Germany

Germany

HOTEL TRANSACTION ACTIVITY IN 2022

13,306 ROOMS SOLD

€2.04 BILLION TRANSACTED

88 PROPERTIES SOLD

42% OF CAPITAL WAS FROM INTERNATIONAL BUYERS

68% OF VOLUMEN WAS

INVESTED IN ECONOMY, MIDSCALE AND UPPER MIDSCALE HOTELS

TRANSACTION VOLUME PER HOTEL CLASS (% CHANGE, 2022 VS 2021)

HOTEL CLASS

% OF TOTAL VOLUME

% CHANGE

AVERAGE PRICE PER PROPERTY €23M

-41%

12%

LUXURY

35%

8%

UPPER UPSCALE

-77%

12%

UPSCALE

AVERAGE PRICE PER ROOM €153K

28%

20%

UPPER MIDSCALE

27%

41%

MIDSCALE

31%

21%

ECONOMY

Note: the data are updated as in April 2023, and may differ from previous publications

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