Germany is a great model for the European hospitality industry, with insiders citing its burgeoning hotel pipeline in three cities as a wonderful success story to inspire other markets.
Berlin, Hamburg and Munich have three of the most active hotel pipelines in Europe, with hundreds of new hotels currently being built and set to shape a new era for the hospitality industry. For hoteliers with properties in Germany, or those seeking to increase their share in their own nation, understanding how accommodation brands in Germany are extending their inventory can provide useful food for thought.
Hamburg is one of the top 10 most liveable cities in the world so it’s perhaps no surprise that a mix of independent and big name accommodation providers are looking to the city for their next hotel opening. There are currently 43 new hotels being built – if your hotel brand is considering a new location in Germany, Hamburg is not only a top 10 liveable city, it’s also one of the top three cities in the world according to Smart Travel and one of the 52 Places to Go in 2017 according to the New York Times.
With its strong design heritage and cool image, Hamburg is a millennial favourite – making it a strong choice for brands looking to attract and win over this heavyweight of the travel industry consumer base.
Munich rivals Hamburg not just in terms of its youthful image and power to attract the desirable millennial traveller, it’s also a hot spot for hotel construction in Europe currently. There are an approximate 43 hotel projects currently in the hotel pipeline within the city limits. In January, industry figures showed that there were over 2524 new rooms in either the construction, final planning or planning stages, making Munich one of the most dynamic and busiest cities for new inventory in Europe.
While Berlin has an estimated 40 hotel projects in its city pipeline, the country’s capital is only the third biggest pipeline in Germany as a whole. Thanks to its political, historic and cultural attractions, Berlin has a diverse mix of accommodation providers, ranging from smaller, independent bed and breakfast and motel options up to five star luxury resorts from big name chains. One of the biggest new developments is in the East Side of the city.
While these three cities have the largest hotel pipelines, numbers show that new hotel developments are in the works across Germany. Frankfurt boasts no less than 30 new hotel projects in the pipeline, with 21 in Dusseldorf and a further 15 in Stuttgart. There are 13 in Cologne and 9 in Dortmund, showing a decent spread of development across the length and breadth of the country.
For hoteliers with properties in Germany already, the increased competition comes as a double edged sword. The investment is proof that the Germany travel market is flourishing, indicative of increased demand from travellers for a range of accommodation options. With more inventory comes more competition however, meaning a strong marketing strategy and effective booking engine are ever more crucial.