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Regional overview: DACH to gain over 900 new hotels in coming years [Construction Report]

by | 24 Feb 2020 | Projects

The impressive Student Hotel Vienna is currently the DACH region’s largest project. (Photo: The Student Hotel)

Over 900 new hotels are planned in the DACH region with a strong focus on the mid-scale and upper-midscale market.

In the coming years, 916 openings will add 134,666 rooms to the hotel market in the DACH region.

We find out more about the promising growth markets and the main segments it will focus on.

Setting the pace in the DACH region

Germany, Austria and Switzerland make up the high-performing DACH market and while all three countries have a healthy hotel project pipeline, Germany clearly takes the lead with 774 hotels and 110,762 rooms slated to go live soon.

Switzerland comes in second with 97 properties and 11,599 rooms while 90 projects are underway in Austria set to bring 12,305 new rooms.

2020 will be a busy year

With 304 planned hotel openings across the region, 2020 is the strongest year in terms of hotel growth in the near future and will bring 41,553 rooms.

267 openings with 39,810 rooms are planned for 2021, followed by another 128 hotels and 21,175 rooms in 2022. 262 more hotels are in the pipeline for 2023 and beyond.

A strong focus

With all categories from 1-star to 5-star luxury seeing new openings, the 3- and 4-star segments come out way ahead of the rest.

The 4-star segment will see the strongest growth with 1,444 properties and 52,403 rooms in the pipeline. The 3-star category is not far behind with 1,146 new properties and 51,516 rooms planned.

470 5-star hotels will open across the region and add 13,271 rooms to the luxury offering, while 232 2-star hotels and 8 1-star hotels will bring 17,476 rooms to the budget category.

Top 10 fastest growing urban hotel markets in the DACH region

Hamburg takes the lead with 48 projects and 9,812 rooms, followed by Berlin with 36 hotels and Düsseldorf with 28.

The banking capital of Frankfurt am Main, Vienna and Munich will each see 27 openings while Frankfurt will boast the highest number of new rooms to its properties being larger.

Cologne will get 16 additional hotels, just ahead of Stuttgart with 15 properties. Hanover and Leipzig close out the top 10 with 12 and 11 properties respectively.

Top 5 hotel brands expanding in the DACH market

With the strong focus on the 3- and 4-star market, it’s unsurprising that brands such as the niu and Holiday Inn Express take the lead with 36 and 29 openings respectively.

Moxy Hotels will add 17 hotels to its portfolio, closely followed by Ibis Styles with 16 new hotels and Dormero with 14.

Noteworthy hotel projects around the DACH market

The largest property set to open in the DACH market is the 822-room Student Hotel Vienna which will launch in Q2 2020. It will include a mix of contemporary student rooms, hotel rooms and co-living studios. The expansive ground floor has been designed as an open and inviting area for guests and the local community. It will include a wide variety of services such as study and gaming areas, meeting rooms, close to 1,500 sqm of co-working facilities dedicated to start-ups and local businesses, restaurants, bars, gyms and sports facilities.

In Basel, a new Mövenpick hotel will replace the recently demolished Hilton. From Q2 2020, the 19-storey Mövenpick Hotel Basel will offer guests 264 large and airy rooms and suites, including 50 Mövenpick Sleep rooms where guests can enjoy a good night’s rest in individually adjustable beds. The Executive Lounge will be another highlight with its floor-to-ceiling window front and a furnished terrace with park views. The hotel will offer 1,800 sqm of meeting space, including a 500-sqm ballroom able to accommodate up to 600 guests.

Slated to open in late 2021, the 234-room Scandic Munich Macherei will be part of a new neighbourhood which will undergo a complete transformation from being an industrial area to becoming home to a vibrant community with space for art, culture, modern offices and open gathering spaces. The property will be close to the city centre and connects easily to the New Messe exhibition centre.

Let’s take a look at some more hotel projects in the DACH region:

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