German Hospitality Market Keeps Expanding | tourism-review.com
German hospitality stakeholders identify a specific trend of the sector. The number of hotels in Germany is decreasing, but the number of guest beds goes up. Nearly 700 new hotels are planned to be built in the next three years, with 100,000 rooms, representing almost 17 billion euros of investment.
If the rising trend of inflow continues like in the past eight years, then the number of extra hotel rooms will be sufficient. Tourism has been flourishing since then. Good economy, political stability, zero interest rate policy. All these factors made travelling in Germany attractive, according to the association's chairman Otto Lindner.
However, according to Lindner, it is a very unpredictable state. Hardly any other industry is so vulnerable to terror attacks or political crises. "Travel costs are the first thing to be cut off in companies," he describes the consequences of a downturn. Therefore, it was questionable if the real estate prices climbed higher and higher, as did the selling prices of hotels and rents for tenants. In some places there are signs of overcapacity within the German hospitality market.
