German hotel investment volume fell to roughly €600 million in the first half of 2026, down from about €1.1 billion in the same period of 2025 — a drop of nearly half — even as operating metrics held firm, with RevPAR essentially flat at €74 and prime yields stable around 6.5%.

The figures come from the Market Beat Germany H1 2026 report, which paints a market defined less by transaction volume than by structural change.

Who is still buying?

International investors accounted for more than half of H1 2026 transaction volume. High-net-worth individuals and family offices led the buyer pool, followed by institutional investors and hotel operators.

The half-year's defining event was not a single trade. It was the break-up of the insolvent REVO Hospitality Group, through which several international hotel groups entered or expanded in the German market for the first time.

What happened to yields?

Prime yields for hotels operated under hotel management agreements have remained largely unchanged at around 6.5% since the end of 2023. Outside the core segment, the picture diverges: yields have become increasingly differentiated according to location, asset quality and risk profile.

Prime assets continue to attract strong investor demand. Secondary locations, by contrast, require more convincing evidence that operational value creation and CAPEX planning can sustainably support returns.

Is supply tightening?

Data from the German Federal Statistical Office shows a slight decline in hotel supply, meaning closures are outpacing new capacity additions. The result: competitive pressures remain contained, which has helped sustain stable operating metrics and reinforced the sector's resilience despite ongoing macroeconomic challenges.

How did operators perform?

Operating performance in H1 2026 was broadly stable year-on-year:

• Occupancy: up slightly to 65%, a 1-percentage-point gain
• ADR: down 1.6% to €113
• RevPAR: essentially unchanged at €74, up 0.1%

The pricing-side softness in ADR offset the occupancy gain almost exactly, leaving revenue per available room flat across the market.

What is the outlook?

August delivered a stronger performance, with RevPAR growth of 4.7%, offering a more positive signal for the second half of 2026. Looking further ahead, market conditions are expected to strengthen in 2027, when the return of several major biennial and triennial trade fairs supports increased corporate travel demand and pricing growth across Germany's key hotel markets.