Europe -  Hamburg

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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 COVID-19 pandemic. Following the outbreak in March, most hotels closed. The rest of the year saw successive cross border restrictions and quarantine measures put in place which further hindered hotel performance. This carried on into early 2021 when performance remained heavily impacted. Throughout the summer months of 2021, performance picked up, driven by leisure-oriented hotels which captured mostly domestic demand. The end of the year saw the implementation of further restrictions as a result of the spread of the Omicron variant.

Supply in Hamburg currently stands at close to 270 properties comprising almost 34,000 rooms. The city has witnessed a number of openings in recent years, and its pipeline remains substantial at approximately 11,500 rooms. More than 65% of the new supply falls into the midscale and upscale sectors. Notable projects include the 281-room Premier Inn Hamburg City Klostertor (July 2022) and the 511-room AC Hotels by Marriott Hamburg HafenCity (2024). On top of that, Accor will be adding 1,000 rooms to Hamburg’s supply with its billion-dollar, three-hotel project set to see the light in 2024.

In 2021, Hamburg’s transaction activity fell by 40% compared to 2020, although the price per room for the transactions that did occur increased by 13%. Noteworthy transactions include the sale of the 143-room my4walls Serviced Apartment complex for a reported €21 million (€148,000 per key) as part of Vonovia’s takeover of Deutsche Wohnen.

Hamburg hotel values increased by 5.3% in euro terms in 2021, as reported in our 2022 European Hotel Valuation Index. This still remains 8% below 2019 values.

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
Senior Director
[email protected]
  • +44 20 7878 7722 (w)
  • +44 0 7725781037 (m)
Nikola Miljković
Associate
[email protected]
  • +44 0 2078787724 (w)
  • +44 0 7593572865 (m)