- Transaction volume of EUR 470 million in the 1st half of 2024
- Prime yields stable at 5.50 per cent compared to the previous quarter
- Deals with operator-free properties continue to dominate
Cushman & Wakefield, one of the world's largest real estate consultancies, recorded a total transaction volume of EUR 470 million in the hotel segment in the first half of 2024. This corresponds to an increase of 43 per cent compared to the same period last year. The increased volume is primarily due to the acquisition of Centro Hotels by the HR Group. In addition, transaction activity was rather subdued with only five further sales in the price segment of over EUR 5 million. The transaction volume was therefore around 30 per cent below the 10-year average for the first half of each year.
The prime yields for hotel investments have not changed compared to the previous quarter. They remain at 5.50 per cent, as they were at the end of 2023.
The largest deals in the 2nd quarter of 2024 included:
- The sale of the 94-room Sir Nikolai Hotel in Hamburg to Fattal Hotels. The seller was the Dutch Sircle Hospitality Group. Following the takeover, the hotel will be operated under the Leonardo Limited Edition brand, making its first appearance in Germany.
- The sale of the future Gambino Hotel with 69 rooms to G&G Holding. The existing building, which is already being used as accommodation, will be completely renovated and remodelled and will reopen as the Gambino Hotel in 2025.
- Long-stay concepts also remain attractive to investors, with a boarding house park in Burbach being sold in addition to the Rioca Stuttgart Posto 6.
Christine Mayer, Head of Hotel Valuation Germany & Austria at Cushman & Wakefield, on the outlook for the investment market: "Operator-free sales and takeovers by owner-operators characterised the transaction market in the second quarter. We expect transaction activity to pick up in the second half of the year. Even if the ECB's first interest rate cut has not yet had an impact on prime yields, the generally stabilising market and lower prices are making investments in hotel properties attractive again. Private equity investors and family offices will provide the majority of the capital for this."
