Munich hotels posted GOP of €68.7 per available room in the 12 months ending August 2026, down 1.1% year-on-year, even as total revenue climbed 2.1% to €196.1 PAR.

The squeeze was plain and simple: costs ran faster than the top line.

At the freshly repositioned The Dean in central Munich, that math plays out across every linen cart and banquet tray. Total operating expenses jumped 3.9% — €4.8 PAR — to €127.4 PAR, dragging GOP margin down 1.1 percentage points to 35.0%.

Where the costs landed

Payroll carried most of the damage. Labor costs rose €3.2 PAR, up 5.0%, to €67.3 PAR. Germany's statutory minimum wage climbed 8.4% on January 1, 2026, layering on top of broader wage inflation and persistent staffing pressure across the Bavarian capital.

Department by department:

• F&B payroll: +€1.0 PAR (+5.0%)
• Sales & Marketing labor: +€0.7 PAR (+13.1%)
• Administration & General: +€0.6 PAR (+7.4%)
• Rooms payroll: nearly flat at +€0.1 PAR (+0.5%)
• I&T: the only decliner, -€0.1 PAR (-9.1%)

Cost of sales climbed 4.4% to €18.1 PAR, with F&B costs driving the move (+€0.5 PAR, +5.1%). Utility costs held broadly steady at €7.7 PAR (+0.4%), as lower electricity (-8.9%) offset higher water and sewer (+15.2%).

Why F&B couldn't save the P&L

Munich's F&B line did what rooms could not. Departmental F&B revenue climbed €4.4 PAR, up 11.5% — by far the strongest line on the statement — while rooms revenue slipped €0.6 PAR (-0.4%) and miscellaneous income fell €0.3 PAR (-9.3%).

But the celebration stops at the column total. F&B expenses rose faster than F&B revenue could absorb, and the spread pushed margins down even as banquet halls and breakfast rooms stayed busy.

RevPAR rounded out the picture. Average daily rate fell 1.5% to €196.3. Occupancy rose 0.9 percentage points to 74.7%. Net: RevPAR dropped 0.4% to €146.7.

Who opened, and who is coming

Four new hotels entered the 12-month window, adding 467 rooms. The repositioning of the former Roomers as The Dean returned a further 281 rooms. On an opening-date-adjusted basis, Munich's supply grew 0.6%.

Concentration was heavy at the top of that list:

• ibis Styles: 358 rooms
• The Dean: 281 rooms
• Combined: 85.4% of identified additions

The ibis Styles landed in the airport catchment, complementing Munich Airport's Terminal 1 Pier expansion in April 2026 — a project adding capacity for up to six million more passengers a year.

Next on the calendar: a 277-room AMANO hotel in Ludwigsvorstadt-Isarvorstadt. Three more projects totaling 523 rooms are slated across Munich and its surrounding market over the next 12 to 18 months, equivalent to a further 0.7% supply bump on opening-date-adjusted terms.

What does this mean for Munich operators?

Margins are thinning even as demand edges up. GOP margin lost 1.1 percentage points in a single year — a slide driven by labor and departmental expense growth, not by revenue weakness alone.

Watch two things in the quarters ahead: whether hoteliers can defend ADR against a supply pipeline that keeps adding rooms, and whether the AMANO opening absorbs demand at price points that hold the €196.3 daily rate.