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Hotel Taschenbergpalais Kempinski Dresden – Image Credit Kempinski
- Eight German hotel brands have been acquired by international investors in the past two decades, signifying a growing interest in the German-speaking hotel market.
- Germany and Austria are attractive markets for private equity investors and hotel groups due to their growth potential and innovative hotel concepts.
According to Susann Sparwasser, a consultant at Horwath HTL Germany, Global investors are increasingly showing interest in German-speaking hotel markets. This is reflected in the recent acquisition of Munich-based hotel group Motel One by French investor PAI Partners. Over the last two decades, eight hotel brands in Germany have been acquired by international investors. This trend is also noticeable in Austria, where similar acquisitions are taking place.
These consolidations are enhancing international expansion for the brands and reshaping the competitive landscape in German-speaking markets. The mergers create synergies that enable combined brands to offer a more competitive pricing structure, thereby pressuring independent hotel operators and local brands.
Germany and Austria are compelling markets for private equity investors and major hotel groups seeking to expand, gain market share, and invest in innovative hotel concepts. Despite geopolitical tensions and inflation, the hotel real estate market has shown resilience, with steady asset prices.
Furthermore, Germany and Austria are testing grounds for new hotel concepts, particularly those integrating advanced design, digital processes, and efficient space utilization. Brands like Ruby and Motel One have successfully tapped into shifting guest preferences.
In addition to acquiring hotel brands, investors also buy stakes in operating businesses, as in the case of PAI Partners acquiring an 80% stake in Motel One’s operating company. This allows for continuity in leadership and additional financial resources to accelerate growth.
With the consolidation trend accelerating in the German-speaking hotel market, it seems likely that more acquisitions will occur in the future. The next wave of consolidation could focus on serviced apartments, a rapidly growing segment. As international investors continue to search for high-potential hospitality brands, further deals in the German-speaking hotel market seem inevitable.
