Europe -  Munich, Germany

In recent years, Munich has consistently earned top marks from leading business journals and institutes as a business location. This is reflected in the city’s economic indicators, such as low unemployment and high GDP growth. Munich’s economic importance and strength within Germany is founded on several important pillars: the diverse economic structure, the wide range of growing industries and the successful composition of global players and SMBs (small- to medium-sized businesses), which all offer substantial growth opportunities. Munich is the leader in the sectors of IT and communication technology, media, finance and life sciences, and the city has also risen to prominence as a cultural and artistic centre, benefiting from a number of attractions, including several festivals with international appeal.

The above factors contribute to strong leisure and corporate demand, but the city also benefits from strong MICE demand. As with any major MICE destination, the performance of this segment is dependent on which biennial or triennial events are held in the city in any given year; however, overall Munich typically sees between 1.7 and 2.4 million MICE visitors per year. BAU (the world’s leading trade fair for architecture, materials and systems) and BAUMA (the world’s leading trade fair for construction machinery, building material machines, mining machines, construction vehicles and construction equipment) are the two most important MICE events for the city. BAU occurs every two years and BAUMA every three, meaning both occur in the same year every six years. 

Munich has benefited from impressive tourism growth in the past decade. 2017 saw a continued strong increase in visitor numbers at 10.2% year-on-year, derived from a healthy growth in both domestic and international visitors. Munich’s relatively even split between international and domestic demand, and the good balance of corporate, leisure and MICE demand, provides continued confidence in Bavaria’s capital.

In terms of hotel performance, the cyclical nature of the MICE market must be taken into account when analysing growth trends. Although 2017 had the benefit of the BAU trade fair, it recorded a decrease in both occupancy and average rate, leading to a RevPAR decrease of some 3.0%, impacted by new supply and the terrorist attacks in Germany and other parts of Europe. However, it still remains one of the strongest hotel markets in Germany. Average rates slightly above €160, occupancies in the high 70s and a continued liquid market have resulted in a slight increase in Munich’s Hotel Valuation Index of 3.2%. Assuming no further extraordinary events or terrorist attacks, we expect Munich’s long-term performance to continue to improve, owing in part to an expansion of the Munich Messe convention centre (due to be completed in 2018) and the addition of a third runway at the airport by 2025.

Change In Value For Market: (€Euro)

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%

Munich RevPAR Change (€Euro)

Munich RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Simon Hulten
[email protected]
  • +44 020 7878-7775 (w)