- Transaction volume of €1.58 billion in Q1-Q3 2025, two-thirds more than in the previous year
- Individual transactions dominate
- Prime yields remain stable at 5.50 per cent
Cushman & Wakefield, a global real estate consultancy, recorded a total transaction volume of €1.58 billion in the hotel segment from January to the end of September 2025. This represents an increase of 68 per cent compared to the same period last year.
The largest portfolio transaction to date in 2025 took place in the third quarter with the sale of Blackstone's 17-hotel Keystone portfolio to Event Hotels. Despite strong growth, the transaction volume was still around 15 per cent below the 10-year average for the first three quarters. Prime yields for hotel investments remained unchanged compared to the previous quarter. They remain at 5.50 per cent, as they have been since the end of 2023.
Among the largest deals in the third quarter of 2025 were the sale of the Steigenberger Hotel am Kanzleramt in Berlin by Amundi to PGIM. The 339-room hotel is centrally located, not far from the main railway station, and the sale of the 248-room Courtyard by Marriott München City Center by Union Investment to Blue Coast Capital. Union Investment also sold the 169-room Park Plaza Wallstreet Berlin. The buyer was the German Civil Service Association. The lease for the hotel is expiring and its future use is not yet known.
More than half (just under 60 per cent) of the transaction volume in the first three quarters was attributable to national investors. Individual transactions dominate the market, accounting for around 80% of the total in the first nine months of 2025. The majority of the investment volume in Q1-Q3 2025 (almost two-thirds) was generated in the top 7 markets. Munich was the clear front-runner, followed by Berlin and Hamburg.
Christine Mayer, Head of Hotel Valuation Germany & Austria at Cushman & Wakefield, on the outlook for the hotel investment market: "The market recovery is clearly visible. The 10-year average was only narrowly missed in Q1-Q3 2025. The third quarter also saw double-digit growth for the first time this year, with portfolios accounting for around 40% of the total transaction volume, indicating a significant upturn. Investor interest is being driven by the attractive yield gap compared to other asset classes, a continued rise in overnight stays and positive benchmark figures."
