Motel One Breaks Billion-Euro Mark, Savills Reports Record Serviced Apartment Investments
Munich, May 1, 2026 – The Munich hotel market is currently experiencing remarkable dynamism. Motel One Group has announced a record-breaking revenue of over one billion euros for the 2025 financial year, while real estate service provider Savills reports record investments in serviced apartments. Concurrently, the 60th anniversary of the Munich Frühlingsfest is driving hotel prices to unprecedented levels.
Motel One’s Impressive Growth and Profitability
The Motel One Group revealed today that its revenue for the 2025 financial year exceeded one billion euros for the first time. This approximately eight percent growth is attributed to consistently high demand. With an operating result (EBITDA) of 279 million euros and a margin of 26 percent, the group demonstrates impressive profitability. As of year-end, the company operated 104 hotels with over 29,000 rooms. For 2026, the management plans eight new openings, including one in Munich itself.
Record Investments in Serviced Apartments
In parallel, a market report from Savills highlights Munich’s attractiveness for institutional investors. In 2025, 1.2 billion euros flowed into European serviced apartments, marking a record. Analysts have observed an annual demand growth of almost six percent since 2019. In Munich, technology, finance, and automotive companies are driving this trend. Additionally, regulatory restrictions on short-term holiday rentals make professionally managed apartments equally appealing to investors and guests.
New Culinary Leadership and Design Accolades
The Louis Hotel on Viktualienmarkt welcomes Marius Pieper as its new head chef today. The 30-year-old previously worked in renowned establishments in Arlberg. His culinary approach combines classic French techniques with Asian flavors and regional products. This appointment is considered a strategic move in Munich’s increasingly competitive culinary landscape. In interior design, the “Pfistermühle” suites at the Platzl Hotel received an award in a competition for the most beautiful hotels and bars yesterday. The design concept by Dreimeta GmbH impressed the jury with its successful storytelling, drawing inspiration from the Hofpfisterei’s history dating back to 1578, blending tradition with modern luxury.
Frühlingsfest Drives Record-High Room Rates
The 60th anniversary of the Munich Frühlingsfest is causing extreme price surges. This year, the event on Theresienwiese spans three weeks, concluding on May 10. Travel portals report room rates for today’s public holiday and the upcoming weekend that are two to three times higher than normal. Standard rooms often cost between 390 and 400 euros per night, with luxury hotels like the Rosewood or Mandarin Oriental commanding significantly higher prices. The high demand is a result of the folk festival’s anniversary, Bavarian school holidays, and Labor Day. Many hotels are offering specific packages; for instance, the Rosewood Munich offered special “Stay 3, Pay 2” arrangements until yesterday, while the Mandarin Oriental focuses on exclusive experiences, such as a one-day use of fully electric sports cars for guests of its Signature Suites.
Luxury Segment Leads the Market
The luxury segment is growing at double-digit rates and leading the overall market. In contrast, the mid-range and economy segments face stronger competitive pressure and stagnant revenues. The Bayerischer Hof recently completed a four-million-euro redesign of its entrance area, a response to the increasing quality demands of international guests. The Munich market relies on a mix of business travelers, MICE participants, and leisure tourists. The growth in guests from the USA and Asia, in particular, has stabilized room rates in the luxury sector.
Outlook for the 2026 Summer Travel Season
Experts predict a continuation of the positive trend. Following the Frühlingsfest, the next major events are already on the horizon. Increasing digitalization and the use of artificial intelligence are also helping hotels address the shortage of skilled workers. The combination of investment-driven owners, innovative gastronomy concepts, and a strong event infrastructure ensures that Munich remains attractive for a high-spending audience despite rising prices. While smaller establishments still face challenges with energy-efficient renovations, large luxury hotels and efficiently managed chains appear well-positioned in the current market environment.
