Berlin is at the top of the list of the world’s favourite destinations for city breaks, both in Germany and internationally. The hotel landscape is correspondingly lively – increasingly sustainable and with numerous modern, new and individual concepts. After expecting a slight revival in the hotel investment market at the beginning of the year, our latest Hotel Market Spotlight for Berlin now looks at the hotel performance itself. How have profits and revenues developed within a year (H1 2024 vs. H1 2023)? Have operating costs and expenses increased? And what proportion do wage and labour costs account for? Here are the key findings: Spotlights Despite considerable cost pressure, the full-service branded hotels in Berlin recorded rising profits in the first half of 2024. The occupancy rate reached 71% in the first half of 2024, up from 68% in H1 2023. While utility costs fell by 23%, the overall operating expenses increased by 13%. Labor costs recorded the strongest growth of 10% comp…
