Berlin is at the top of the list of the most popular city travel destinations in the world, both in Germany and internationally. The hotel landscape is correspondingly lively – increasingly sustainable and with numerous modern, new and individual concepts.
After we expected a slight revival of the hotel investment market at the beginning of the year, our latest hotel market spotlight for Berlin is now dedicated to the performance of the hotels themselves.
How have profits and sales developed within one year (H1 2024 vs. H1 2023)? Have operating costs and expenses increased? And what share do wage and labor costs account for? Here are the most important findings:
Headlights
- Despite considerable cost pressure, the full-service branded hotel industry in Berlin recorded increasing profits in the first half of 2024.
- Capacity utilization reached 71% in the first half of 2024, compared to 68% in the first half of 2023.
- While utility costs fell by 23%, total operating costs rose by 13%. The largest increase was in labor costs, up 10% compared to the previous year.
- Nevertheless, thanks to a 4% growth in revenue, GOP (gross operating profit) per available room increased by 2%.
Christine Mayer, Partner, Valuation and Advisory Services:
“Revenues at Berlin hotels continue to recover, driven by Berlin’s popularity as a travel destination and business location. It is encouraging to see that this is also reflected in improved nominal profits despite cost pressures. A good sign for hotel investors and operators.”
The full report can be found here
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core real estate, asset and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and corporate accolades for its award-winning culture and commitment to diversity, equity and inclusion (DEI), sustainability, and more.
For more information, visit www.cushmanwakefield.com
Christine Mayer
partner
Cushman & Wakefield
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