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Low-cost segment is booming: new budget hotels in Germany.
Thursday, 22nd May 2014
Ibis, Motel One, B&B and A&O are expanding – US hotels brands enter more and more the German market.

Budget hotels increase its presence: in Germany the budget hotels put on 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. This data has been revealed by TOPHOTELPROJECTS, the worldwide leading provider of global b2b hotel data.

The five most powerful budget hotel brands are currently operating 250 properties in Germany. Also Motel One is one of the leading chains. The hotel chain 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. In Germany further three openings by Motel One will take place: 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 currently three new properties arise by a famous budget hotel brand. Accor plans on a large area in prime location close to the main train station the opening of a Ibis hotel (252 rooms) and an Ibis Budget (196 rooms) for this spring. Also a Prizeotel (photo) will arise: the second property by this budget hotel brand with 216 rooms will open in June.

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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. In Munich another property (160 rooms) will open in September. Early-2016 another low budget hostel will follow in Stuttgart (130 rooms).

One of the most 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 the pipeline in Germany. In the capital B&B is operating three properties, another two are in development.

Hotel market experts are sure that the segment of low cost, budget and economy hotels will increase further. In the UK and France the number of properties with less than hundred is small. International hotel companies such as Hilton (among other with its hotel brand 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.

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