Europe -  Hamburg, Germany

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Hamburg, Germany’s second-largest city, is a leading centre for radio and television broadcasting and film production, an important transport hub and a leading player in the aviation industry. The city is also home to the largest port in Germany, the third-busiest in Europe. Hamburg benefits from a strong mix of corporate, leisure and MICE demand. The Hamburg Messe and the Congress Centre Hamburg (CCH) together host hundreds of events each year, focusing on trade fairs relating to the shipping and maritime industry as well as medicine and pharmaceuticals.

An increasing number of leisure visitors are attracted to the city owing to its wide range of cultural and architectural attractions. In addition to various museums, great shopping facilities, several theatres and a vibrant nightlife along the Reeperbahn, tourists are attracted to the historic warehouse complexes in the Speicherstadt and the new Elbe Philharmonic Concert Hall in HafenCity, in the grounds of Hamburg’s biggest redevelopment site which is considered to be one Europe’s largest inner-city developments. These attractions and the accessibility of the city have led to Hamburg becoming an attractive city break destination.

Visitation to Hamburg had been strong for the couple of years leading up to and including 2019 which experienced a further increase of around 6%; however, RevPAR performance for the city told a slightly different story. RevPAR had been decreasing on average by 2.5% owing to the new supply entering the market and the closure of the CCH for refurbishment, which had a negative impact on the MICE market. In 2020, the city recorded a severe decrease in visitation, owing to the pandemic. Following the COVID-19 outbreak in March, most hotels closed. Some leisure-oriented hotels reopened in spring, capturing the mostly domestic demand during the summer months. The rest of the year saw successive cross border restrictions and quarantine measures put in place which further hindered hotel performance.  

The city of Hamburg has witnessed a number of openings in recent years, and its pipeline remains substantial at approximately 9,000 rooms. Over 65% of the new supply falls into the midscale and upscale classes. Notable projects include the 454-room Motel One Hamburg Neustadt (2021), the 220-room MOXY Hamburg Altona (2021), the 450-room the niu Lab (2022) and the 511-room AC Hotels by Marriott Hamburg HafenCity (2024).

In 2020, Hamburg’s transaction activity fell by 25%, although the price per room for the transactions that did occur increased by 3%. Noteworthy transactions include the sale of the 221-room IntercityHotel Hamburg-Barmbek, which was sold as part of a portfolio, and the sale of the 347-room niu Yen Hamburg, which was the only hotel sold as a single asset deal.

As a result of the pandemic, hotel values in Hamburg decreased by just below 13% in 2020. Strong domestic demand in Germany should support quicker recovery in the short term, although the substantial pipeline is likely to somewhat slow the pace.

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: Less than -10%

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Nikola Miljković
[email protected]
  • +44 20 7878-7721 (w)
  • +44 7 593572865 (m)