Berlin Hotel Market Spotlight
Berlin is at the top of the list of the world's favourite destinations for city breaks, both in Germany and internationally. The hotel landscape is correspondingly lively - increasingly sustainable and with numerous modern, new and individual concepts.
After expecting a slight revival in the hotel investment market at the beginning of the year, our latest Hotel Market Spotlight for Berlin now looks at the hotel performance itself.
How have profits and revenues developed within a year (H1 2024 vs. H1 2023)? Have operating costs and expenses increased? And what proportion do wage and labour costs account for? Here are the key findings:
Spotlights
- Despite considerable cost pressure, the full-service branded hotels in Berlin recorded rising profits in the first half of 2024.
- The occupancy rate reached 71% in the first half of 2024, up from 68% in H1 2023.
- While utility costs fell by 23%, the overall operating expenses increased by 13%. Labor costs recorded the strongest growth of 10% compared to the previous year.
- Nevertheless, thanks to 4% revenue growth, the GOP (gross operating profit) per available room rose by 2%.
Christine Mayer, Partner, Valuation & Advisory Services:
'The revenue of hotels in Berlin continues to recover, underpinned by Berlin’s popularity as a tourism and business destination. It is good to see that this also translates into improved nominal profits despite the cost pressures. A good sign for hotel investors and operators.’
Access the full report here
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more.
For additional information, visit www.cushmanwakefield.com
