The consultancy firm Horwath HTL offers an annual analysis of hotel development in the DACH region, an acronym that in fact covers Germany, Austria and Switzerland. Three countries whose culture and economic and social structures share many similarities. For example the predominance of independent hotels in all three countries. In Germany, 40% of rooms are affiliated with branded hotels. Brand penetration in Austria is even weaker, with a market share of 31%. At Switzerland finally, 17% of the total room offer is reserved for brands.
However, Horwath HTL notes that steady growth in hotel groups in the DACH region, particularly in major cities such as Berlin, Munich, Frankfurt, Vienna and Hamburg. With almost 900 hotels in all segments and around 162,000 rooms, these metropolitan areas account for a third of all hotels in the region.
On the 3 DACH markets, the number of rooms in hotel chains reached a record high of 489,813including 81 % in Germany, 10 % in Austria and 9 % in Switzerland. That's just over a third of the total supply per room.
By hotel group, Accor dominates with 476 hotels corresponding to 65,611 rooms, followed by Marriott International with 157 establishments and 30,891 rooms, Best Western with 210 units and 22,123 rooms, Intercontinental Hotels Group with 111 hotels and 21,505 rooms. A German chain comes fifth, Motel One GmbH with 71 establishments and 20,222 rooms.
The German market, more mid-range and price-sensitive
The German hotel market - the largest in the DACH region - remains dominated by the mid-range, economy and very economy (budget) segments.. In this segment, nearly 57 % belong to international chains. In total, the number of rooms in Germany exceeds 986,000. With the projects under development over the next two to three years, Germany should pass the million-room mark by 2025.
Accor has established itself as Germany's most important channel with 357 establishments flirting with the 50,000-room mark. The French chain is followed by Marriott International (115 hotels and 24,062 rooms) and Best Western (177 hotels and 19,613 rooms). By individual brand, B&B Hotels and Motel One dominate with over 17,000 rooms each, followed by Mercure with over 13,000 rooms.
Germany's seven largest cities are the most popular destinations for the country's hotel chainswith nearly 1,000 hotels for a total of 174,000 rooms. Berlin accounts for 27.8% of the supply, with 48,368 rooms, followed by Munich (18.7%) and Frankfurt (16.3%). Hamburg, on the other hand, has the highest number of projects, with 15 hotels being built, representing an additional 3,243 rooms.
Horwath HTL also notes that less than 2% of the tariffs analysed for Germany were over 300 eurosThis indicates that the German hotel market remains extremely price-sensitive. Germany remains a market with good value for money for business travellers.
