Market Trends of Hospitality Industry in Germany
This section covers the major market trends shaping the Germany Hospitality Market according to our research experts:
International Brands and their Chains are Occupying a Major Share of the Market
There used to be a huge difference between domestic and international brands in the past years. However, during 2018, the scenario changed. The international brand penetration increased by 15% and reached 131 while the domestic brand penetration was zero and remained at 89. The international chains added more rooms to their existing supply, which was observed to be 7%, whereas domestic chains managed to add 3% more. Mergers and acquisitions helped international brands to record such a growing number in 2018. The new hotel project construction pipeline is also more inclined toward international brand penetration. One of the leading international brands, IHG, announced its plans to add around 85 new IHG brand hotels in the country. If this plan is executed, it may double the brand’s supply in Germany.
Hotel Construction Project Pipeline is Expected to Address the Increasing Demand in the Leading Cities
Berlin has been recording a high number of tourist arrivals since the past few years, followed by Munich and Frankfurt. Berlin welcomed more than 133 million guests in 2018, while Munich welcomed around 8 million guests and Frankfurt welcomed around 7.6 million. In order to accommodate the growing number of visitors, the investors have focused on these cities. Thus, currently, there are more than 200 hotels in Berlin alone. The hotel construction project pipeline for 2018-2021 shows that around 3,000 rooms may be added to the existing supply in Berlin and to the other aforementioned leading cities as well.
