The real estate project developer Benchmark Real Estate has published the study "Hotel New Construction in Germany" in cooperation with the analysis company Bulwiengesa. Based on the impact on the hotel real estate industry caused by the Corona pandemic, the experts examine, among other things, developments in the city and vacation hotel sector, the construction of serviced apartments, the importance of long-stay hotel concepts and the rebranding of existing hotels and their concepts.
Overall, it can be observed that the hotel market is restructuring. The study examines, for example, what construction activity currently looks like in the German hotel real estate market, based on new buildings with at least 40 rooms. It can be observed that new construction and the completion of new hotels fell sharply in the pandemic year. While about 20,000 hotel rooms were completed in 2020, only 680 of the 34,000 planned completions had been realized by February of this year. Experts suspect that this downward trend will continue throughout the year.
While the city hotel industry in A-cities is suffering heavily from the effects of the pandemic, investors and project developers are focusing their plans more on German vacation regions and B, C and D locations. Compared to 2019, the market share in this area has increased from 61 to 66 percent in 2020. Here, experts expect that investors will continue to shift their focus to the vacation hotel sector in the future. Likewise, it is becoming apparent that a restructuring of existing hotel concepts is much more in focus than new construction of hotel properties.
Source: Bulwiengesa/Benchmark Real Estate
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