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HOTEL PROPERTIES
most important ratio of all, the RevPar,
the average revenue per available room:
in 2016, this rose nationwide by close to
5%. In the past six years, the increase has
actually averaged just over 4%.
As indicated above, the hotel sector
has taken advantage of the good business
environment to invest, in order to make
the range of what it offers more varied
and in tune with the times. By means of
individualised hotel concepts, the aim
is to meet the changing requirements of
tourists and their desire for a heightened
experience and that “certain something”.
Above all the budget hotel segment has
been developing modern, diversified and
trendy concepts in order to reach new and
broader target groups. International hotel
chains have launched several modern con-
cepts to ensure that they will continue to
be able to meet the growing demand for
individualised hotels. Fresh impetus also
comes from the renovation and upgrading
of existing establishments.This trend is es-
pecially apparent in the market segment
of luxury hotels, where guests are also
becoming more demanding. New devel-
opments, for instance in the long-stay and
serviced apartment business, are precisely
noted and responded to appropriately.
HIGHER TRANSACTION VOLUME
In view of
this success story, it is hardly surprising
that the sustained upturn in hotel markets
has also been registered by investors. For
three years now, the transaction volume
in this field has been increasing strongly,
and in 2016 the hotel investment mar-
ket continued to soar. For the first time
ever, turnover passed the 5 bn€ threshold,
setting a new record with 5.18 bn€. This
represented the seventh increase in suc-
cession in aggregate investment. No other
asset class can point to a comparably suc-
cessful trajectory. Single deals generated
almost 3.1 bn€, another new high, while
Success story: By means of
individualised hotel concepts,
the aim is to meet the changing
requirements of tourists and
their desire for a heightened
experience.
market activity in the field of portfolios
was also distinctly dynamic, with a total
for the year as a whole of over 2.1 bn €,
more than ever before. The year-end spurt
was remarkable: around 43%of the aggre-
gate volume was produced during the final
quarter. In the seven key investment loca-
tions (Berlin, Cologne, Düsseldorf, Frank-
furt, Hamburg, Leipzig and Munich), the
transaction volume rose year-on-year by
8% to about 2.93 bn €. But the increase
there was actually considerably lower than
the nationwide rise (+18%), indicating
that hotels are becoming a growing fo-
cus of investor interest outside the major
markets, too. Foreign investors evidently
also consider the German hotel market
particularly attractive and dynamic – this
is shown by the fact that in the past seven
years, the ratio between investors from
abroad and those from within Germany
has been basically quite balanced, with
the former in fact leadingmarginally, with
shares ranging from just under 51 to 63%.
In 2016, foreign investors again finished
out in front, with a proportion of 57%.
All in all, 2016 was another outstand-
ing year for the German hotel markets.
The question now is whether the upward
trend will continue in this present year or
whether the markets will take a breather.
Right now, this is difficult to predict, one
reason being that although risks are ap-
parent, they are difficult to calculate. They
include the possibility of more protection-
ist policies in the USA or turbulence trig-
gered by Brexit. The most likely scenario
at present is that the hotel business in 2017
will continue to be boosted by a favourable
overall economic climate. This includes
stable and robust GDP growth, the fur-
ther reduction of joblessness figures and
record-level employment. The sustained
healthy appetite on the part of consum-
ers and their enjoyment of city visits and
brief breaks will also make a contribution.
And even if one or the other all-time high
should not be bettered this year, that
would not be a disaster. At any rate, there
can be no doubt that overall prospects re-
main positive and pleasing.
«
Alexander Trobitz, Head of Hotel Services,
BNP Paribas Real Estate
Alexander Trobitz, Head of Hotel Services,
BNP Paribas Real Estate
Photo: 4kclips/shutterstock.com
