Hotel markets have recovered significantly from the coronavirus pandemic. Accommodation numbers, capacity utilisation and room rates have increased noticeably again in most markets. In Germany, the average hotel capacity utilisation in the past twelve months as of June 2026 was around 68 percent, the average room rate was 116 euros and the RevPAR, i.e. the turnover per available room, was 79 euros.¹ Many markets in Europe also show robust fundamentals again. So it’s no wonder that, according to CBRE, more than 90 percent of European hotel investors surveyed want to maintain or increase their allocation to hotels in 2026.²

However, this does not mean that the segment has simply returned to old patterns. The hospitality industry has undergone structural changes: Travel and booking behaviour, cost structures and user expectations are now more heterogeneous than they used to be. A hotel concept that is rigidly focused only on one target group or one purpose of travel can suffer more from volatile demand. This applies to purely business hotels as well as to classic holiday hotels on the Mediterranean, for example. A clear distinction between premium on the one hand and budget on the other is also sometimes no longer effective.

More resilient are concepts that connect different sources of demand. This includes the so-called B-leisure trend, i.e. the mix of business and leisure trips in the cities. But this also includes hotels that are price-conscious, efficient and comfortable at the same time, without seeming cheap. Limited service concepts can play an important role here: They address several target groups: City travellers, business travellers, project staff or guests who are looking for flexible, functional and well-connected accommodation but spend little time there and can therefore forego one or the other convenience. In some cases, the boundary between serviced apartments can be blurred, but there is still a relevant difference between housing and hotels: the length - or better: Short - of the stay. 

At the same time, hotel concepts need to keep an eye on their cost base more than ever. Increased personnel, energy, maintenance and sales costs can have a significant impact on the operating margin. Digital processes for booking, check-in or guest services can help, provided they are used sensibly and do not compromise the guest experience. Franchise operator models also usually have a cost disadvantage. Finally, the sales structure is also crucial. Those who are too dependent on online booking portals (OTAs) give away a significant part of their value creation to them. Operators with a strong brand, clear positioning and direct customer access therefore benefit.

As hotels are in greater demand again, the project pipeline is growing again in many places. This is basically a good sign of confidence in the asset class. However, this can again lead to overcapacities in individual cities. This makes it all the more important to select modern, flexible and cost-efficient concepts at sustainable locations. In the future, the target group approach is likely to be further differentiated, for example with regard to older travellers, long-stay guests or hybrid travel occasions. This does not contradict flexibility, on the contrary: Good hotel concepts are clearly positioned and can also adapt to changing demand.