For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:   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 remains one of Germany’s strongest economic powerhouses and a premier business destination. Despite the broader national challenges, including high energy costs, cautious consumer behaviour and declining foreign investment, Munich continues to stand out due to its diversified economic base, dynamic industries and the successful coexistence of global corporations and SMEs (small- and medium-sized enterprises). Key industries such as technology, finance, automotive and engineering are well-represented, with global giants like BMW and Siemens headquartered in the city. Munich is also emerging as a key player in biotechnology and artificial intelligence.

Culturally, Munich is a thriving hub, home to renowned museums, theatres and internationally celebrated events such as Oktoberfest which draws millions of visitors annually. This rich blend of business and leisure underpins strong corporate and leisure travel demand. Additionally, Munich benefits from a robust MICE (Meetings, Incentives, Conferences and Exhibitions) sector, attracting between 1.7 and 2.4 million MICE visitors each year. Like many major MICE markets, Munich faced challenges in reviving in-person business travel post-pandemic, as companies adapted to remote work and virtual meetings. The performance of this segment often hinges on the occurrence of large biennial or triennial events.

However, 2024 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, reaching approximately 41.6 million travellers, recovering to over 85% of 2019 levels. Tourism growth has been impressive over the past decade, with 2024 visitation increasing by 9% year-on-year. While Munich traditionally maintains a balanced mix of international and domestic visitors, post-pandemic dynamics have shifted slightly, with domestic travellers accounting for about 60% of total visitation in 2024.

Although 2019 was buoyed by the BAU and BAUMA trade fairs – the city’s most important MICE events – RevPAR slightly declined due 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. As a result, RevPAR rose by over 10%, narrowing the gap to just 4% below 2019 levels (real terms). 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 over 60% in the last ten years, putting pressure on the Munich hotel market overall, which partially explains the occupancy levels that are still absorbing the additional supply.

Munich’s hotel development pipeline includes over 2,200 rooms across approximately 15 projects, a modest number compared to the city’s supply (less than 5%), primarily concentrated in the city centre. Budget and midscale properties dominate and over half of these projects are independent. Notable developments include the 358-room ibis Styles Munich Airport (expected to open in mid-2025) and the 190-room Premier Inn Munich (scheduled for the beginning of 2028).

With three transactions taking place in 2023, the number rose to five in 2024. These include the 66-room Clarion Hotel Ambiance Rivoli (February 2024), the 69-room Gambino Hotel Goethe (June 2024), the 290-room Roomers Munich for around €80 million (€276,000 per room, in September 2024), the 56-room Hotel Munich (November 2024) at an estimated allocated price as part of a portfolio of around €349,000 per room, and the 162-room Former NH Hotel Munchen City Sud (December 2024). We note that a couple of additional transactions closed as of early 2025.

Munich remains one of the top-performing hotel markets in Germany. Hotel values increased by 4.8% in 2024, fully recovering to 2019 levels. Thanks to its historical market liquidity, strong mix of leisure and corporate demand, resilient domestic base and the return of both BAU and BAUMA trade fairs in 2025, Munich is well-positioned for continued growth. Nevertheless, macroeconomic uncertainty across Germany may continue to weigh on the city’s outlook.

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

ADR Change
Market Demand Change
Hotel Occupancy Increase/Decrease
RevPAR Change
Market Supply Growth

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 2078787722 (w) +44 0 7725781037 (m)
	Margherita Rivetti [email protected] +44 0 278787754 (w) +44 0 7955271797 (m)
	Tabitha Watkins Analyst [email protected] +44 0 2078787724 (w) +44 0 7562956921 (m)