Europe -  Hamburg, Germany

Hamburg, Germany’s second-largest city, is a leading centre for radio and television broadcasting and film production, an important transport hub and a leading player in the aviation industry. The city is also home to the largest port in Germany and third-busiest in Europe. Hamburg benefits from a strong mix of corporate, leisure and MICE demand. The Hamburg Messe and the Congress Centre Hamburg (CCH) together host hundreds of events each year, focusing on trade fairs relating to the shipping and maritime industry as well as medicine and pharmaceuticals. The CCH was one of the first dedicated conference centres in the country. The venue closed for refurbishment at the beginning of 2017 which is likely to have a negative impact on the MICE market in the short run until its reopening, scheduled for the beginning of 2019. An increasing number of leisure visitors are attracted to the city owing to its wide range of cultural and architectural attractions. In addition to various museums, great shopping facilities, several theatres and a vibrant nightlife along the Reeperbahn, tourists are attracted to the historic warehouse complexes in the Speicherstadt and the recently opened Elbe Philharmonic Concert Hall in HafenCity, in the grounds of Hamburg’s biggest redevelopment site which is considered to be one Europe’s largest inner-city developments. These attractions and the accessibility of the city have led to Hamburg becoming an attractive city break destination. 

Growth in visitation to Hamburg has been strong for the past decade with a compound annual growth rate of around 6% since 2006. The continued strong demand for accommodation has allowed the hotel market to absorb the new supply which can be illustrated by a stable occupancy level of around 79-80%. In light of the cyclicity of the MICE market and the biennial events that take place in the city, average rates typically see a strong boost in even-numbered years. Therefore, 2017 was a more modest year, although it still recorded healthy RevPAR growth.

Similar to other key cities in Germany, Hamburg has a heavy hotel pipeline with more than 7,000 rooms in various stages of development scheduled to enter the market by 2021. Notable projects, among others, include the 154-room Fraser Suites Rodingsmarkt (2018), the 277-room Courtyard by Marriott Hamburg St. George (2018) and the 200-room MGallery by Sofitel scheduled to open in 2020 as part of a large mixed-use development scheme.

We highlight that the sale of the Radisson Blu Hamburg for €200 million (€360,000 per key) in March was the largest hotel transaction in Germany in 2017. Other recent transactions include the proposed 289-room Ruby Lotti Hamburg in December 2017, the proposed 291-room Moxy Hamburg in November 2017 and the 94-room Leonardo Hamburg Elbbrucken in October 2017, as well as the 161-room Hampton Hamburg City Centre and the 104-room Holiday Inn Express Hamburg City Hauptbahnhof (both part of the Investa portfolio), although the prices paid for these assets remain undisclosed.   

Change In Value For Market: (€Euro)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Hamburg RevPAR Change (€Euro)

Hamburg RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
sperret@hvs.com
  • +44 20 7878 7722 (w)
Simon Hulten
shulten@hvs.com
  • +44 020 7878-7775 (w)