Europe -  Berlin, Germany

Over the past decade, Berlin has experienced impressive growth in visitation, airport passengers, hotel supply and performance. The city benefits from a strong MICE market; however, its largest segment is leisure guests. Owing to its strong focus on creative industries, start-ups and student population, the city’s profile attracts a young and international crowd.

Berlin recorded strong growth in both occupancy and average rate over the past four years, averaging around 4% RevPAR growth over this period. The city suffered from a terrorist attack in December 2016; however, this event did not have a negative impact on the market’s performance in 2017. Berlin’s average rate performance remains at the lower end in a Europe-wide comparison, with even the five-star hotels achieving low rates compared to other major gateway cities in Europe.

The city boasts an impressive pipeline of new hotel projects, most of which will fall into the economy segment, but with significant inventories. The Motel One Alexanderplatz (708 rooms) and the 245-room Meininger Hotel East Side Gallery recently opened in December 2017. Future openings include the 254-room Hampton by Hilton close to the Mercedes Benz Arena, a 283-room Barcelo Berlin, a 119-room Hotel Indigo and the 95-room Hotel Amano Friedrichstrasse.

Looking forward, the hotel pipeline is likely to remain strong, putting further pressure on the existing hotels as well as on infrastructure and most notably the airport operation. Despite this new supply, the long-term forecast looks positive for the German capital, with several upcoming cultural events and the long-anticipated opening of the new Berlin Brandenburg Airport (delayed, again, until 2021), which should help with capacity issues and increase the appeal of Berlin for international travellers as the city’s tourism is still heavily focused on domestic visitors.

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: Less than -10%

Berlin RevPAR Change (€Euro)

Berlin RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Simon Hulten
[email protected]
  • +44 020 7878-7775 (w)