Hotel industry
Despite the lack of guests, investors are building hotels
75 planned hotel projects have been canceled since the outbreak of the corona virus, and 64 more are on hold. Photo: Lino Mirgeler / dpa
© dpa-infocom GmbH
The feared large flight of investors from the hotel industry due to the corona crisis did not materialize. 216 new hotels have been opened since January 2020 – 363 more are in the works.
Despite the dramatic drop in the number of guests, numerous hotels are still being planned and built in Germany. The feared large flight of investors from the hotel industry has not materialized.
Although many city hotels in particular are missing guests again this year, the signs in the hotel industry, which has been hard hit by the pandemic, are pointing to recovery. According to experts, some holiday hotels in holiday regions even did better business this year than they did before the crisis.
In January 2020, 718 hotel projects were planned or under construction in Germany, determined the Hotel Consulting firm of real estate broker Engel & Völkers. “At the beginning of the pandemic there was a brief stagnation because the banks were very cautious about financing for a few months,” says managing director Andreas Ewald. According to the company’s hotel market report, 75 projects and 64 others were put on hold.
“A lot of liquidity on the way”
But 216 houses have now been opened, and 363 more are still in the works. “There is still a lot of liquidity going on in the real estate market,” says Ewald. “We can see that many projects are picking up speed again.”
The corona crisis caused the number of overnight stays to collapse in 2020: from 495 million in 2019 to 302 million. In a report on the German hotel market published in June, the IHA hotel association assumes that the pre-crisis level may not be reached again until 2025. Holiday hotels will presumably fare comparatively well.