Europe -  Berlin

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With some 3.6 million inhabitants in 2023, Berlin is the largest city in Germany and regarded as a city of knowledge and culture. It is home to some of the most prominent universities, sporting events, orchestras and museums. The rapidly evolving metropolis enjoys an international reputation for its festivals, contemporary architecture, nightlife and avant-garde arts. A major tourist centre and home to 190 nationalities, Berlin is a focal point for individuals attracted to its liberal lifestyle, urban eclecticism and artistic freedom.

From 2013 to 2019, Berlin experienced impressive growth in visitation, airport passengers, hotel supply and performance, registering a compound annual growth rate of around 3.5% in visitation during this period, mainly thanks to an increase in international visitation which grew at a compound annual rate of around 4.2%. The city benefits from a strong MICE market, but its largest segment is leisure guests. Owing to its strong focus on creative industries, start-ups and the student population, the city’s profile attracts a young and international crowd.

Berlin recorded healthy growth in RevPAR from 2013 to 2019, averaging an annual increase between 2.5% and 5.0%. This was mainly driven by an increase in occupancy, which grew from a little over 70% in 2013 to just under 80% in 2019, despite the city’s strong pipeline during these years. Over the same period, Berlin’s average rate experienced somewhat slower growth, broadly in line with inflationary changes. Following the pandemic impact, performance started to recover more strongly from the summer of 2022. Overall, 2022 RevPAR recovered to more than 70% of 2019 levels. In 2023, while the average rate of the hotel market returned to the pre-pandemic level in real terms, hotel demand remained more than 5% below the levels seen historically, which resulted in RevPAR recovering to just over 90% of the 2019 level in real terms.

Berlin is expecting to see a new-supply increase of around 8% of existing rooms in the next few years, most of which will fall into the midscale and upper midscale categories (more than 60%). Some future openings include the 198-room Zleep Hotel Berlin Airport (opening in June 2024), the 175-room acora Living the City Berlin Airport (December 2024), the 278-room prizeotel Berlin-City (January 2025) and the 157-room Premier Inn Funkwerk Koepenick (December 2025).

In 2023, transactional activity within Berlin’s hotel market was very limited. There were only two hotel transactions during the year: the sale of the 157-room Premier Inn (bought by Premier Inn Group) and the 190-room Penta Hotel Berlin-Kopenick (purchased by Leonardo hotels), both sold for an undisclosed price.

Following the slower-than-expected recovery in Berlin’s hotel performance, the market’s hotel values remained flat in 2023, compared to the previous year, which resulted in values staying around 3% below the pre-pandemic level.

Change In Value For Market: (€Euro)

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: More than -10%

For more information, please contact:

Sophie Perret, MRICS, MBA
Managing Director
[email protected]
  • +44 0 2078787722 (w)
  • +44 0 7725781037 (m)
Julia Dzerkach
[email protected]
  • +44 0 2078787742 (w)
  • +44 0 7912240964 (m)
Clemence Sennavoine
Senior Associate
[email protected]
  • ++44 0 7736273439 (m)