Hamburg: Need for New Business Hotels4. August 2016
At EXPO REAL, Hamburg’s property market presents itself in excellent shape
Hamburg: Need for New Business Hotels
Hamburg’s office market is booming. Halfway through the current year, the Hanseatic city is the only investment market of Germany’s large cities to have increased volumes in comparison to the previous year. Hamburg also took top position in the ranking, with transaction volumes totalling 2.145 bn euro. However, excellent business opportunities for real estate investors are also offered by other market segments. This is particularly true for the hotel market. Dr. Rolf Strittmatter, CEO HWF: “Additional hotel rooms will be needed in Hamburg by 2025. Therefore, hotel investors are an important target group of HWF’s activities at EXPO REAL. Particularly needed are business and conference hotels.“ The international real estate industry will present itself at Europe’s larges trade fair for commercial real estate and investments EXPO REAL in Munich from 4 to 6 of October. The joint stand of the Hamburg Metropolitan Region will feature 56 exhibitors and logo partners. The Hanseatic city also invites providers of multi-storey room concepts for trade, crafts and logistics to call at the stand.
The travel destination Hamburg is booming. In the first five months of the year, around 2.5 million guests visited the Free and Hanseatic City (plus 4.9 per cent). With slightly more than five million nights book, stays increased by 6.8 per cent to last year’s period of comparison.
A steady growth and sustained demand reflect the positive developments of the Hamburg hotel market. Accommodating on offer increased from 334 to 342 hotels (+ 2.4%) in 2016, followed by an 0.6 per cent increase from 342 to 344 hotels in 2015, with capacities increasing to 57,919 beds (+ 3.6%). The majority of hotels are located in the three to four star segment. Given the sustained growth, a demand-oriented capacity increase of the hotel industry is required.
A high portion of Hamburg hotels is rather small in size, with most hotels offering only up to 50 rooms. Only a minority has more than 200 rooms. Nearly half of all hotels are categorised with three or four stars.
Most hotels in Hamburg are privately operated. The hotel chains active in Hamburg are only national or even regional in character. Catching up with international hotel brands is thus the need of the moment, particularly in the premium range. The budget segment, however, is proportionally better set up in Hamburg than in Berlin or Munich.
To hotel investors, Hamburg is one of Germany’s most attractive hotel locations. According to the global commercial real estate company Colliers International, Hamburg boasts the best key figures of the hospitality industry next to Munich.
Enormous investment activities, positive developments in demand and supply, and a stable performance of the exhibition and convention sector characterise the hotel market in Hamburg. Given the very good accessibility of Hamburg, the increased demand in MICE, and the general rise in popularity, Hamburg is well positioned as a travel destination also in regard to the steadily rising city tourism. In regard to international demand, there is still development potential.
Demand, coupled with a high potential, can also be found in Hamburg in regard to international congresses, conferences, and the MICE segment. From this, a corresponding need for congress / conference hotels and for the MICE sector can be derived. Due to its excellent position and huge potential as an economic hub, the demand of the business segment, coupled with respective hotel concept, is still high.
Hamburg will participate at EXPO REAL with a joint stand of 640 square metres large in size at its accustomed position in hall B2. 56 companies and institutions are partners of the joint Hamburg stand at EXPO REAL. They reflect the entire bandwidth of the Hamburg real estate industry. New exhibitors include the Fonds & Friends Verlagsgesellschaft mbH (Die Immobilie), HanseMerkur Grundvermögen AG, meravis Bauträger GmbH, MOMENI Projektentwicklung GmbH, Nord Project Immobilien und Beteiligungsgesellschaft mbH, Rheinmetall Immobilien GmbH, Senectus Gmb, and VITZTHUM Projektmanagement GmbH.
About EXPO REAL
EXPO REAL is Europe’s larges B2B trade fair for real estate and investments. It represents the entire supply chain of the international real estate sector — all the important sectors are there, from conception and design through investment and financing, realisation and marketing to operation and use.
Key facts of EXPO REAL
- 64,000 square metres of exhibition space in six halls
- 37,857 participants from 74 countries
- 1,707 exhibiting companies
- 1,000 journalists and media representatives
- 400 experts in the conference programme