Focus on Price Adjustments
Over the past three years, many hotel operators have significantly increased their room rates. According to the survey, 50% of respondents reported raising their average daily rates by more than 10% since 2022. Looking ahead, 76% plan further price increases within the next two years—a notable rise from 62% reported last year. “Operating costs have increased faster than revenues in recent years, creating pressure to raise room rates. Whether higher prices can be sustained depends heavily on local competition and demand,” explains Tina Froböse, Managing Partner of Select Hotel Consulting.
Lease Costs and Contract Durations
Shifts are also apparent in leasing conditions: 62% of operators expect rent increases in 2025, with rent costs currently averaging 22% of revenues. Satisfaction with current lease terms averages 6.1 out of 10—down from the previous year. Around 40% rated their rent costs at five or below, considering them relatively high. However, 74% of operators report having lease terms exceeding ten years.
Expansion Remains a Strategic Priority
Despite economic challenges, growth remains high on the agenda: 74% of respondents plan to expand in the coming years through acquisitions, new lease agreements, or franchise development. “For many operators, expansion is a key to achieving synergies and economies of scale. With new builds stagnating and some markets reaching saturation, acquisitions will continue to play a central role,” says Froböse.
Energy Renovations Not Yet a Priority
Energy efficiency upgrades are not currently a primary focus. Only 28% of owner-operators plan related investments within the next two years. “Lengthy lease terms often hinder comprehensive renovations. Most owners are currently focused on securing stable rental income,” Froböse notes.
Future Challenges
The most pressing challenges cited by hotel operators are rising cost pressures (93%), followed by a shortage of skilled labor (48%) and increasing bureaucracy (28%). These issues could significantly impact the industry’s future growth trajectory.
About the Survey
The survey was conducted between April and May 2025 and includes responses from 46 hotel operators—half of whom manage more than 10 hotels with over 1,000 rooms. 82% of the participating businesses belong to the midscale or upscale segments. Collectively, respondents operate more than 2,000 hotels with over 200,000 rooms globally, with two-thirds of those located in Germany. This represents approximately three-quarters of the larger hotel operator market in Germany.
Stay tuned for more updates in our Blogs to keep up with top news in the hotel Industry.
Photos Source: ClickUP
