Germany: Hotel Investment Q4 2018
Date Published: 13/02/2019
Although the lack of product prevented 2018 from chasing the record set in 2016, the German hotel market managed to keep pace with 2017's excellent results. Single assets and portfolios proved equally popular, with investors continuing to prefer stock properties and assets under construction. Property developmentswith long lead times, on the other hand, are becoming increasingly difficult to position on the market. Even though yield compression slowed down considerably in the Big 7, we can expect the trend toward secondary and tertiary locations to continue in the coming year. Thanks to the robust market situation and good general economic conditions, we expect 2019 to match 2018's results. It all depends on whether current high demand can be met with attractive investment opportunities.