Operation, Revenue, and Prerequisite of the hotel business in Germany

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Hotel business in Germany

hotel business in Germany

From time to time, our clients ask us about investing in the hotel and hostel industry in Germany. How is its management and operation different from other countries? Is it the right investment in terms of return on investment and income, and finally, what are the prerequisites needed to start working. In this short article, we try to answer all these questions.


The hotel industry in Germany is an important part of the tourism industry and plays an important role in the country’s economy. Here is some general information about the hotel industry in Germany:

Categorization: Hotels in Germany are divided into different categories based on the services offered and the facilities of the hotel. The star categorization ranges from 1 to 5 stars. Some hotels also have their own categories, such as “wellness hotel” or “conference hotel”.

Bookings: Hotel bookings can be made through various channels, such as over the phone, by email or via online booking portals such as Booking.com or Expedia.

Guests: Guests in German hotels come from all over the world and travel for various reasons. Some come for business, others for tourism or events.

Laws and regulations: The hotel industry in Germany is subject to various laws and regulations that set the standards for the safety and comfort of the guests as well as for the operation of the hotels.

Service offer: Hotels in Germany offer various services such as breakfast, cleaning services, wellness areas, restaurants and bars. The facilities and services offered may vary depending on the category of the hotel.

Overall, the hotel industry in Germany is well developed and offers a wide range of accommodation options for guests from all over the world.


The question of whether the hotel business in Germany is lucrative depends on various factors such as the location, category of the hotel, occupancy, seasonality, competition, operating costs and many other factors. Here is some general information:

Location: The location of the hotel plays an important role in profitability. Hotels in metropolitan areas or tourist areas can typically fetch higher prices and have higher occupancy rates than hotels in rural areas or lesser-known cities.

Category: Hotels with a higher star category or with special features can charge higher prices, but also have higher operating costs.

Occupancy: High hotel occupancy is important for profitability. However, the occupancy is usually seasonal and can vary greatly depending on the target group and location.

Competition: The competition in the area can affect the prices and occupancy of the hotel. A high number of hotels in the area can lead to lower prices and lower occupancy.

Running costs: The running costs for a hotel can be high, especially for staff, energy and water consumption, cleaning and maintenance. Good planning and cost control are therefore important to ensure profitability.

Overall, the hotel business in Germany can be lucrative if planned and managed well, but there are also risks and challenges that need to be considered. A detailed market analysis and careful planning are therefore essential to maximize the chances of success.


 Yes, to open a hotel in Germany you need permission from the relevant authorities. Permission is usually granted by the local building control authority after various requirements have been met, such as evidence of adequate fire and safety precautions and a permit to operate an accommodation facility.

In addition, you will also need to submit the appropriate business registrations and applications and may need to obtain further approvals from other authorities such as health and environmental agencies, depending on the type of hotel and services you wish to offer.

It is important to find out in advance about the necessary permits and to ensure that all requirements are met before you start building or opening the hotel. It is recommended to seek legal advice to ensure all necessary steps are followed.

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