Europe -  Frankfurt, Germany

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Frankfurt am Main stands as one of Europe’s foremost financial and transport hubs, distinguished by its modern skyline and role as a major international gateway. Located in the German state of Hesse, the city ranks among the leading financial centres in continental Europe and is widely regarded as the most important banking hub in the Eurozone. It is home to key institutions such as the European Central Bank and the Frankfurt Stock Exchange, alongside numerous global and domestic commercial banks. Frankfurt also maintains a strong position in the global exhibition industry, serving as the headquarters of Messe Frankfurt, one of the world’s largest trade fair operators. Strategically located at the heart of Europe, Frankfurt benefits from exceptional connectivity across air, rail and road networks. Frankfurt Airport remains one of Europe’s busiest aviation hubs, handling close to 60 million passengers in 2025, while Frankfurt Central Station is among the continent’s largest and most important rail interchanges. A significant milestone was reached in April 2026 with the opening of Terminal 3, which increased the airport’s annual passenger capacity by approximately 19 million passengers to around 84 million. Looking ahead, further expansion and optimisation measures could increase total capacity to 90 million passengers, reinforcing Frankfurt’s long-term growth prospects and status as a leading international gateway.

Frankfurt offers a compelling blend of historic character and modern sophistication. The reconstructed Altstadt, including the iconic Römerberg square, contrasts with the city’s high-rise financial district, often referred to as ‘Mainhattan’. The city also boasts a rich cultural landscape, anchored by institutions such as the Städel Museum, alongside a busy calendar of international events and exhibitions.

Frankfurt am Main’s hotel market saw demand broadly return to pre-COVID levels by 2023; however, this recovery occurred alongside a supply increase of over 10%, which has continued to exert pressure on occupancy levels in subsequent years. In 2024, performance was temporarily strengthened by the hosting of five UEFA Euro 2024 matches in the city, which provided a significant but non-recurring uplift to both occupancy and rate performance. This event-driven boost masked underlying structural constraints in the market, particularly the reduced depth of midweek corporate demand and increased supply-driven competition. In 2025, trading conditions normalised without the Euro-related demand effects. Occupancy is estimated to have settled approximately 4-5% below pre-pandemic levels, while rate growth remained subdued due to more limited yield opportunities and a structurally smaller base of fair and corporate demand. As a result, despite nominal RevPAR broadly returning to 2019 levels, the underlying performance remains weaker in real terms, with inflation-adjusted RevPAR still materially below pre-COVID benchmarks.

Frankfurt continues to have a sizeable pipeline, with approximately 2,300 rooms scheduled to be added in the coming years, an 8% increase on the existing supply. Of these, 70% of the hotels are only proposed and 26% are under construction. Upcoming openings include the 280-room Ruby Lola (December 2026), the 189-room Hyatt House Frankfurt City Goetheplatz (January 2027) and the 288-room Super 8 by Wyndham Frankfurt (April 2027).On the investment side, activity remained subdued in 2025, with just one transaction recorded: the 118-room Lindner Hotel & Residences Main Plaza for an undisclosed sum in November.

According to our 2026 Hotel Valuation Index, hotel values in Frankfurt fell by 5% per key in 2025 compared to the previous year, with values falling to 17% below 2019 levels. This reflects yield expansion driven by higher interest rates, alongside more cautious investor sentiment and the slower-than-anticipated recovery in key demand segments such as midweek corporate travel and large-scale trade fairs.

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: More than -10%

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)