Budget hotels are an increasing presence in Germany, both in respect of RevPAR (revenue per available room) and new properties. Just in March the RevPAR of budget hotels increased by 6.2 per cent to 48.10 Euro. Currently 54 new budget hotels are in the pipeline, according to data released by TOPHOTELPROJECTS, a worldwide provider of global b2b hotel data.
The five most powerful budget hotel brands are currently operating 250 properties in Germany. Motel One, one of the leading chains, is greatly expanding its presence in Berlin – two new hotels will be added to the eight existing ones. This year a 239-room hotel will open at the “Leipziger Platz”. In two years another Motel One with 582 rooms will open at the Zoo Station. A further three openings by Motel One will take place in Germany: in summer a 180- room property in Leipzig (“Augustplatz”) will be inaugurated, followed by two properties in Bremen (254 rooms) and in Magdeburg (150 rooms) in autumn.
In Hamburg, there are currently three new properties in the pipeline by budget hotel brands. Accor will be opening an Ibis hotel (252 rooms) and an Ibis Budget (196 rooms) on a large area in prime location close to the main train station. Budget hotel brand Prizeotel will also open a second 216-room property in June.
Hostel operator A&O (currently 22 properties) is also expanding in Germany, In July a new hostel (132 rooms) will open its doors in Weimar and in Munich another property (160 rooms) will open in September. In early-2016 another low budget A&O hostel will follow in Stuttgart (130 rooms).
One of the fastest-growing budget hotel chains in Germany is B&B. The French hotel concept owns 63 properties (more than 6,000 rooms) in Germany. According to TOPHOTELPROJECTS, currently 13 new hotels with a total number of 1,575 rooms are in its pipeline in Germany. In the capital, B&B is operating three properties with another two in development.
Hotel market experts believe that the segment of low cost, budget and economy hotels will increase further. International hotel companies such as Hilton (Hampton by Hilton), IHG (Holiday Inn Express) and Wyndham (Super 8) know about the potential of the German market. The first low budget hotel by the US brand Super 8 will open in autumn 2015 in Munich-Laim (160 rooms).
Largest budget hotel operator remains Accor with its brand Ibis and 183 properties in Germany. Eight openings are planned for this year.
