For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
2025
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2024
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2023
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2022
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2021
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2020
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2019
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2018
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2017
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2016
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2015
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2014
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2013
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2012
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2011
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2010
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2009
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2008
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2007
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2006
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2005
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2004
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2003
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2002
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2001
Frankfurt am Main, a metropolis in the German state of Hesse, stands as a significant hub in Europe, distinguished by its modern skyline and status as a major international gateway. The city holds the distinction of being ranked among the world’s leading financial centres and the largest in continental Europe. It is home to the European Central Bank, the Frankfurt Stock Exchange, and several large commercial banks. In addition, Frankfurt also boasts a strong tradition of hosting international trade fairs, being the headquarters of Messe Frankfurt, one of the world’s largest trade fair organisers. Strategically positioned in the heart of Europe, Frankfurt offers excellent air, rail and road connectivity. Frankfurt Airport, the sixth busiest in Europe, welcomed approximately 61.6 million passengers in 2024, while Frankfurt Central Station remains one of the largest and most important rail hubs on the continent. Notably, the airport’s third terminal is currently under construction, with the first phase expected to add capacity for 19 million additional passengers, and a potential second phase could raise this figure to 25 million. This major infrastructure investment underscores the city's strong long-term growth prospects and strategic importance as a global gateway.
The city presents a rich blend of historic charm and modern sophistication. From the reconstructed Old Town (Altstadt) and its picturesque Römerberg square to the towering skyscrapers that have earned it the nickname Mainhattan, Frankfurt appeals to both business and leisure travellers. Its cultural offerings are extensive, with highlights including the Städel Museum and a vibrant calendar of festivals and events.
Like many cities, Frankfurt’s hotel market was significantly impacted by the COVID-19 pandemic. By the end of 2022, occupancy had recovered to approximately 70% of pre-pandemic levels. Recovery continued steadily through 2023 and 2024, with rising demand and modest gains in average rates. RevPAR has experienced double-figure growth for three consecutive years. However, despite this sustained growth, it remains below pre-pandemic nominal levels, with performance still trailing 2019 figures. This is primarily due to the slow recovery in corporate travel, trade fair activity, and relatively subdued leisure demand. Additionally, over the past decade, the city’s hotel inventory has expanded significantly, at a compound annual rate of 1.9% between 2014 and 2024. While demand kept pace with this growth until 2019, the increased supply has since exerted downward pressure on hotel performance.
Frankfurt continues to have a large pipeline, with approximately 3,500 rooms scheduled to be added in the coming years, a 10% increase on the existing supply. Upcoming openings include the 100-room Ascott Riverpark Tower Frankfurt (December 2027) and the 180-room Kennedy 89 (September 2025).
On the investment side, activity remained subdued in 2024, with just two transactions recorded: the acquisition of the 109-room B&B Hotels Frankfurt-West by Imaxxam Asset Management for an undisclosed sum in January, and the 73-room ibis budget Frankfurt Offenbach Süd, sold as part of the Accor DE Hotel Portfolio in July for €4.4 million.
According to our 2025 Hotel Valuation Index, hotel values in Frankfurt rose by 3.4% per key in 2024 compared to the previous year. However, overall values remain 13% below 2019 levels, reflecting the city’s ongoing but incomplete recovery.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
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