Compared with other European countries, hotels in Germany have demonstrated one of the fastest recovery rates in addition to strong RevPAR growth, with hotel trading in most German cities now back to or exceeding pre-crisis 2008 RevPAR levels, according to a new report from consultancy HVS London.
Strong growth in the country’s manufacturing industry, demand for exports and the German VAT decrease from 19% to 7% for overnight stays in hotels have all helped the sector, HVS said.
Although secondary German cities such as Düsseldorf and Stuttgart have showed slower rates of recovery, the performance of Munich has been especially strong. “Munich hit a home run in terms of RevPAR recovery,” said report author Arlett Oehmichen, associate director at HVS London. “In 2010 Munich’s RevPAR was 9.5% higher than it was in 2008, reaching €85.41, indicating that the city has truly recovered. This recovery was due to the return of large conventions and fairs to the city in 2010 as well as increased leisure visitors lured to the 200th Octoberfest.”
Germany also was particularly active in terms of hotel transactions, the report noted, with 15 single-asset transactions having taken place in the first half of this year.