5-Year Comparison Shows Moderate Decline as Regions Outside the Top 7 Support the Market
According to analysis by Cushman & Wakefield, hotel transaction volume in Germany totalled approximately €960 million during the first nine months of 2026. This represents a decline of 39 per cent compared with the same period last year (€1.58 billion). At the same time, the share of the hotel asset class in overall transaction volume for the first three quarters fell from 10 per cent in the previous year to around 5 per cent in 2026.
The largest hotel transaction of the first nine months of 2026 remains the sale of the German portion of the Pentahotels portfolio, comprising six properties, by Aroundtown SA to a joint venture between the UK-based Ogilvy Capital and the US-based Ironstone Group. The most notable single-asset transaction of the third quarter of 2026 was Art-Invest’s acquisition of the Intercity Hotel at Frankfurt Central Station. The seller was CA Immo.
Compared with the five-year average, transaction volume during the first three quarters of 2026 was 11 per cent lower. “Despite the two ‘outlier’ years of 2021 and 2025, we expect the comparison with the 2021-2025 five-year period to remain relatively moderate by year-end,” comments Christine Mayer, Head of Hotel Valuation Germany at Cushman & Wakefield. In contrast, the comparison with the ten-year average for the first three quarters of 2016-2025 shows a much sharper decline of 47 per cent, reflecting the continued influence of the pre-pandemic boom years.
One of the reasons for the significant decline in transaction volume is the near-complete absence of hotel portfolio transactions, aside from the aforementioned Pentahotels portfolio transaction. Christine Mayer comments: “We are seeing a clear shift in the German hotel investment market. Investors are increasingly acquiring individual hotels, often with the intention of modernising them or converting them into serviced apartments. Investors now require robust operator concepts and realistic capex plans.” The insolvency of the Revo Group has had a localised impact on the market; however, many former Revo properties are being taken over by new operators. Such individual cases are viewed both as market consolidation and as opportunities for well-capitalised investors and expanding operators. Christine Mayer adds: “Investors remain active, but they are selectively acquiring individual assets with stable operating structures or clear repositioning potential. Portfolio transactions are largely absent, apart from the exceptional Aroundtown/Pentahotels portfolio deal. Asset deals and acquisitions by operators are dominating the market. This creates opportunities for buyers seeking to invest in refurbishment or adaptive reuse. Geographically, this trend is currently less focused on hotels in the major metropolitan areas. Instead, assets in Germany’s leisure and holiday destinations are attracting greater interest. This also aligns with the broader trend towards short breaks and weekend holidays within Germany’s tourist regions, not only along the North Sea and Baltic Sea coasts but also in the country’s low mountain ranges.”
One example of a transaction involving refurbishment and subsequent conversion or repositioning as serviced apartments was the acquisition of two former traditional hotels near Cologne Central Station by Centralis Immobilien Gruppe, facilitated by Cushman & Wakefield.
Significantly More Moderate Decline Outside the Top 7
This trend is also evident when analysing regional transaction statistics: with a decline of approximately 21 per cent (to €550 million during the first three quarters), transaction volumes in regions outside the Top 7 markets¹ have fallen far less sharply than in the Top 7 markets, where volume declined by 54 per cent (to €411 million). “Ultimately, it is the transactions outside the Top 7 that are supporting the market,” says Mayer. Rather than large portfolio deals, the market is being driven by individual asset transactions, some in regional centres and others in leisure destinations.
Yields Remain Stable
Prime hotel yields have remained stable at 5.50% for the ninth consecutive quarter, according to Cushman & Wakefield. Whether this stable yield level can be maintained through to year-end following the increase in base interest rates will become clear during the fourth quarter.
¹ Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Munich and Stuttgart.
