For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:   2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001

With a population of approximately 3.6 million as of the 2022 census, Berlin stands as Germany’s largest city, sprawling across an area nearly nine times the size of Paris. Widely recognised as a centre for culture and education, it is home to leading institutions such as Humboldt University and the Berlin State Opera, alongside major landmarks like the Brandenburg Gate, Museum Island, and the East Side Gallery, a preserved stretch of the Berlin Wall now used as an open-air gallery.

As one of Europe’s most diverse cities, Berlin is home to people from more than 190 nationalities and is known internationally for its festivals, modern architecture, creative arts scene, lively nightlife and sporting events. The city is associated with a liberal way of life, a mix of urban styles, and strong artistic freedom, while also serving as an important base for startups, technology firms and academic research.

Up until 2019, Berlin experienced consistent growth in tourism, with increases in visitor numbers, airport traffic and hotel performance. The launch of Berlin Brandenburg (BER) International Airport in 2020 improved connectivity, and by 2024 it had become Germany’s third busiest airport after Frankfurt and Munich. The airport welcomed just under 26.1 million passengers in 2025, a 2.3% increase over 2024 numbers.

The city benefits from a strong Meeting, Incentive, Conference and Exhibition (MICE) market, but its largest segment is leisure guests. The city’s youthful, international appeal is amplified by its concentration of students, creatives and entrepreneurs.

In the years leading up to the COVID-19 pandemic, Berlin’s hotel occupancy consistently hovered in the high 70% range, while rate growth had begun to decelerate. Despite a steady increase in hotel supply, rising at a compound annual rate of 2% between 2016 and 2019, the market successfully absorbed this expansion thanks to strong and growing demand.

The COVID-19 pandemic temporarily impacted market performance, but recovery began in summer 2022. During that year, RevPAR rebounded to around 90% of 2019 levels in nominal terms. By 2023, average rates had fully recovered in real terms, although demand was still 5% to 7% below previous peak levels. This upward trend continued into 2024, with real RevPAR nearly catching up with inflation since 2019, broadly tracking cumulative price growth over the period. Nevertheless, momentum eased in 2025, with rates softening by mid-single digits despite stable levels of occupancy.

Looking forward, a notable wave of new openings is on the horizon. Roughly 10,000 new rooms, representing about 13% of current inventory, are expected to enter the market in the coming years. Around two-thirds of this pipeline is already under construction and is comprised principally of limited service hotels, including roughly 3,500 rooms in the city centre. Key upcoming projects include the 522-room five-star Estrel Tower hotel (end of 2026), the 161-room A by Adina Kurfürstendamm (end of 2027) and the 375-room Ruby Berlin Kurfürstendamm (early 2028).

Following a couple of slow years, eight hotels transacted in 2025, among which the 412-room InterCity Hotel Hauptbahnhof was sold for a rumoured €84 million (€202,000 per key) in March; the 580-room Motel One Upper West was sold as part of a portfolio of two hotels for approximately €112 million (€193,000 per key) in June; and the 167-room Park Plaza Wallstreet was sold for €36 million (€216,000 per key) in August.

As borrowing costs slightly declined, the sudden decrease in rates across the city negatively impacted the Berlin hotel market value, which decreased by 2.9% in 2025, as outlined in our 2026 European Hotel Valuation Index.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

ADR Change
Market Demand Change
Hotel Occupancy Increase/Decrease
RevPAR Change
Market Supply Growth

Change In Value For Market: (€Euro)

Berlin RevPAR Change (€Euro)

Berlin RevPAR (€Euro)

For more information, please contact:

	Sophie Perret, MRICS, MBA Managing Director [email protected] +44 0 7725781037 (m)
	Maxime Gauthier Senior Associate [email protected] +44 0 7593572865 (m)