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HVS In-Depth Europe Hotel Valuation Index:   2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001

Munich stands out as one of Germany's most resilient economic centres, maintaining its appeal as a top business destination despite broader national headwinds such as high energy costs, subdued consumer confidence and declining foreign investment. Its strength lies in a well-diversified economy where global corporations and smaller enterprises coexist across sectors such as technology, finance, automotive and engineering. The city is home to world-renowned names such as BMW and Siemens and is increasingly making its mark in biotechnology and artificial intelligence.

Culturally, Munich is equally compelling, with a strong offering of museums, theatres and landmark events, most notably Oktoberfest, which attracts millions of visitors each year. This combination of business and leisure credentials underpins consistently strong travel demand across both segments. Munich also boasts a well-developed MICE sector, drawing between 1.7 million and 2.4 million business event visitors annually. As in many major MICE markets, the city faced a slower recovery in in-person business travel following the pandemic, as remote work and virtual meetings became more firmly embedded. Performance in this segment remains closely tied to the cadence of large-scale biennial and triennial events.

However, 2024 and 2025 saw a significant rebound in international trade fairs, with a notable rise in overseas attendance, signalling renewed strength in the conference and hospitality sectors. Munich Airport supported this trend with a 12% increase in passenger traffic in 2024, and an additional 5% increase in 2025, reaching approximately 43.4 million travellers, recovering to more than 90% of 2019 levels. Tourism growth has been strong over the past decade, with 2025 visitation reaching 9.3 million, 6% ahead of 2019 levels. While Munich traditionally maintains a balanced mix of international and domestic visitors, post-pandemic dynamics have shifted modestly, with domestic travellers accounting for about 60% of total visitation in 2025.

Although 2019 was buoyed by the BAU and BAUMA trade fairs (the city’s most important MICE events), RevPAR declined slightly owing to a decrease in average rate. In the years following the pandemic, the market showed a stronger recovery in rates, followed by demand. In 2024, both occupancy and average rate improved meaningfully as in-person meetings and events regained traction. Momentum remained in 2025, bolstered by the BAU and BAUMA fairs, albeit at a slower pace. As a result, RevPAR increased by close to 5%, narrowing the gap to 2019 levels, in real terms, and has now broadly caught up with inflation over the period. We note that, while supply in the city centre has remained relatively stable over the years, supply in the surrounding areas of Munich has increased by more than 60% in the last ten years. This expansion has added competitive pressure across the broader market, helping to explain occupancy levels that are still normalising in response to the additional capacity, as well as the slower rate recovery observed in submarkets outside the centre relative to those in the city’s core.

Munich’s hotel development pipeline includes more than 3,100 rooms across 16 projects, potentially representing more than 5% of the market’s supply. Nevertheless, only one project is in the city centre: the 277-room Amano Hotel, scheduled to open at the end of 2026.

Transactions in the market have increased year-on-year since 2023, with ten deals occurring in 2025. These include, among others, the 248-room Courtyard Munich City Centre, sold in May for close to €75 million (€300,000 per key); the 73-room Mandarin Oriental Munich, which transacted in June for approximately €150 million (€2,000,000 per key); and the 34-room Hotel Atlas City, sold in November for €11.1 million (€330,000 per key).

Munich remains one of the top-performing hotel markets in Germany, and the only one which recorded a positive RevPAR evolution in 2025, bolstered by the trade fairs. Despite this improved topline, increased operational costs have negatively impacted profit margins, which led to hotel values decreasing by 2.4% in 2025, as observed in our 2026 European Hotel Valuation Index. Nevertheless, given its historical market liquidity, strong mix of leisure and corporate demand, resilient domestic base and trade fair activity, Munich is well-positioned for continued growth.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

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Change In Value For Market: (€Euro)

Munich RevPAR Change (€Euro)

Munich RevPAR (€Euro)

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)