Selling a Hotel in Munich and Surrounds: How to Exit Successfully

As of end of 2024, Munich has approximately 98,000 beds in 469 properties, room occupancy of around 70%, average room revenue of ~€98 – still below 2019 levels but significantly above 2023. Einfach Munich State Capital Munich

Summary / Key Facts (As of: 28.08.2025)

• Event-driven peaks (e.g. EXPO REAL, bauma) temporarily boost ADR/RevPAR significantly – important for timing & pricing.

Publicly listed sales listings fluctuate widely: currently around 3 properties in the city, ~2 in the district (ImmoScout24). Throughout Bavaria ~59. Depending on the portal, 3–9 listings are visible in the city area – Off-Market remains common practice. ImmoScout24 Immowelt

Bed tax: Currently prohibited in Bavaria (state law); Munich is suing against the ban – for sellers/operators, no overnight tax to be anticipated at present. DEHOGA Bavaria Bavarian State Newspaper destinet.de

Munich is a high-demand market with strong conference, trade fair and leisure demand. In 2024, revenues and occupancy increased further; at the same time, bed numbers grew – occupancy thus remained below pre-crisis levels, which buyers should factor into due diligence. For sellers, this means: leverage operational momentum but set realistic KPIs. Einfach Munich State Capital Munich

Why is hotel sales in Munich so special?

Event peaks (Oktoberfest, EXPO REAL, bauma, Intersolar, football matches, etc.) drive ADR/RevPAR pointedly – ideal timing for marketing launches, bidding processes or management meetings.

Regulatory relevance: Bavaria currently has no bed tax; however, political and legal disputes remain a monitoring point for buyers. DEHOGA Bavaria Bavarian State Newspaper destinet.de

The public market is small and fluctuates daily. As a snapshot (today):

How many listings are there on the market?

• City of Munich: approx. 3 hotels "for sale" listed (ImmoScout24).

• Munich district: approx. 2 hotels (ImmoScout24).

• Bavaria overall: approx. 59 hotels (ImmoScout24).

• Portal spread: immowelt sometimes shows 3–9 results in the city area (sometimes also search requests/new building projects). Interpret with caution.

Important: A considerable portion of transactions takes place discreetly Off-Market (especially city hotels & operator properties). This explains the discrepancy between perceived demand and portal listings. Christie & Co hotel real estate sales.de

Price Discovery & Deal Structure: What Buyers Pay Attention To

Valuation / EBITDA Multiple

• Stable 12–24-month KPIs, adjustments (owner's costs, non-recurring), forecast with event calendar.

Yield ranges (core locations top-7) recently ~4.7–5.5%; Munich tends toward the lower end. ASSETPHYSICS

Asset Deal vs. Share Deal

• Asset deal (land/building/inventory) vs. share deal (e.g. GmbH/PropCo/OpCo). Tax effects (property transfer tax, loss carry-forwards, etc.) to be structured with tax advisor beforehand.
• Property transfer tax Bavaria: 3.5% (comparatively low). IHK Munich

Lease, Operator & Brand Contracts

• Terms, rent escalations, indexing, CapEx obligations, key money, HMA clauses, change-of-control.

Permits & Technology

• Fire safety, noise protection, parking spaces, food service license, hygiene, accessibility, energy (GEG/ESG roadmap).

Personnel & Transition

• § 613a BGB (business transfer), collective agreements, shift schedules, outsourcing contracts (housekeeping, F&B, laundry).

CapEx Plan

• Rooms, bathrooms, technical building systems, facades, digital guest journey; three-year CapEx & ROIC justification.

Best Practice: How Sellers Prepare the Process

• Data room (financials, contracts, technology, ESG, CapEx, reports) + monthly P&L/STR-style KPI deck with event calendar.
• Vendor commercial & technical DD – clarify typical red flags proactively.

• Pricing story: document peak events (Oktoberfest, EXPO REAL, trade fair calendar) as planning premise. STR

• Use off-market window to activate qualified buyers first; if needed, later controlled bidding process.

Access to operator chains, family offices, HNWI, specialized funds – many deals don't run through portals. Christie & Co hotel real estate sales.de

Why sell with a specialized hotel & gastronomy broker?

• Confidentiality: protect team, guests & rating – discreet outreach instead of public listings.

• Expertise in operator contracts/HMA & CapEx: purchase price is decided in valuation, not in brochure design.

• Transaction management: DD choreography, Q&A, SPA term sheets, timelines – time-to-close counts.

Your Advantages with Absolut Gastronomie Immobilien (Munich & Southern Germany)

• Focus niche: hotels & gastronomy assets – not "generalists". You're speaking with market insiders for Munich & surroundings.
• Qualified buyer ecosystem: operators, boutique brands, budget & lifestyle chains, investors – curated, credit-checked.

• Off-Market First: discreet pre-placement with perfect fits; optional switch to structured bidding process.

• Value story & figures: EBITDA normalization, event leverage, CapEx plan, return case – prepared as investment memorandum.

• Operational bridge: if desired, operator search (lease/rental agreement) in parallel with investment process.

• Munich expertise: trade fair & event calendar, micro-locations, project pipeline, regulatory logic – critical for deal speed.

Common Mistakes – and How to Avoid Them

• Too late KPI cut-off: QTD/MTD not clean – leads to renegotiations.
• CapEx underestimated: buyers price CapEx aggressively → price discount.

• Unclear contract situation: old supplier/brewery/lease contracts break the story.

• Wrong timing: list without event tailwind or parallel to market-wide offering waves.

With good preparation 4–7 months to closing; share deals often faster than complex asset deals.

FAQ

How long does a hotel sale in Munich take?

Benchmark via EBITDA × multiple (market range, return targets, CapEx). Prime locations benefit from tighter yields. ASSETPHYSICS

What is my hotel worth?

Currently no – Bavarian law prohibits them; the city of Munich is suing. Factor without for calculations at present. DEHOGA Bavaria Bavarian State Newspaper

Is there a bed tax in Munich?

Nationwide, the market picked up again in 2024/25; core investors & chains are selective but active.

How many buyers are active?

Planning to sell your hotel in Munich or the surrounding area? We create a complimentary initial valuation indicator including pricing story, off-market outreach plan and event timing – discreetly and precisely.

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