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Munich: a lean year for the secret capital

A major business centre, Munich is also famous for its variety of high-end retail options, and remains the gateway to the Land of Bavaria and its castles.

Munich also benefits from the presence of a major airport which welcomed 44.6 million passengers in 2017, an 5.4% increase compared to 2016. In 2018, works for the airport extension will start (construction of a third runway, new port and new central building) with the aim of welcoming nearly 6 million additional passengers per year.

The city also plans to open two exhibition centres as well as a congress centre next to the existing Munich Messe, confirming the city as a major hub for business meetings and congresses.

It should also be noted that the city of Munich applies the same regulations as that of Berlin regarding the overnight rental of an entire accommodation, which is prohibited, making the development of alternative housing such as AirBnB more difficult.

The hotel capacity of the greater Munich area represents nearly 10% of the total chain supply in Germany, a growing weight in 2018 due to a larger hotel chain supply in 2017: +6.6%, via the addition of 1,768 rooms to the existing portfolio.

Several noteworthy openings took place in east Munich, AccorHotels recorded growth in its network through the Mercure and 25 Hours brands. As elsewhere in Germany, H Hotels moved a Ramada property under its own H4 brand (removing Ramada from the conurbation) and is making a major contribution to the development of Trademark, Wyndham's soft brand that jointly operates 4 hotels that are already open in Munich.

The city still has the strongest RevPAR in Germany, at €90.3 incl. tax in 2017, but it decreased over the year (-2.7%), due to stagnation in the occupancy rate (+0.2 point) and a drop in the average price (-2.9%).

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