With a transaction volume of 225 million euros, the hotel investment market in Germany recorded its weakest opening quarter since 2014 in the first quarter of 2023, according to a report by real estate consultants Colliers. Hotel transactions accounted for four percent of the total commercial investment volume in the first quarter of 2023. This corresponds to the level of the last three years.
According to Colliers, equity investors and corporates in particular remained active despite the rather difficult market conditions, even if they became more selective. In general, it can be said that the gross prime yield for hotel properties rose to an average of 5.00% in the first quarter of 2023. This corresponds to the fourth consecutive increase and the same level as at the end of 2016. Interest in investing in hotels has increased again following the coronavirus crisis.
There are even portfolios on the market at the moment for which there are already interested parties. "We are also currently seeing buyers and sellers coming closer together in price negotiations," says René Schappner, Head of Hotel at Colliers. The reason for this is that many sellers have now adjusted their asking prices to the interest rate level.
Source and further information: colliers.de
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