The hotel market in the Hanover region continued to perform well in 2025. With approximately 4.18 million overnight stays, the high level of previous years was further consolidated, falling just short of the previous record set in 2019. In the state capital of Hanover, a new record was even set with approximately 2.48 million overnight stays. The sustained high demand underscores Hanover’s importance as a venue for trade shows, conventions, and events. At the same time, the hotel supply continued to expand: both the number of lodging establishments and the available bed capacity increased.
Market Sentiment and Trends
Stable demand continues to be driven by both business travel and tourism. Leading international trade fairs, conferences, major events, and concerts ensure consistent hotel occupancy and help Hannover maintain its position as a major hotel destination in northern Germany. At the same time, the range of accommodations is becoming increasingly diverse. In addition to traditional business hotels, lifestyle concepts, serviced apartments, and brand-oriented hotel products are gaining further prominence.
The chain hotel sector is continuously expanding its market position. International operators continue to invest in Hannover, thereby strengthening the city’s appeal for both business and leisure travelers.
Performance Stabilizes at a High Level
The key performance indicators show an overall positive trend: The average occupancy rate rose to around 62% in 2025, while the average room rate declined slightly to 102 euros. At the same time, revenue per available room (RevPAR) increased to 64 euros, reaching its highest level since 2019.
This trend underscores the overall robust demand in the Hannover hotel market. Despite a slight decline in the average room rate, hotels were able to increase their occupancy and further improve RevPAR. Thus, the growing competition from additional capacity has not yet had a negative impact on the market’s economic performance.
Hotel Supply Continues to Grow
Not only demand but also supply continues to grow steadily in the Hannover hotel market. In 2025, the state capital had 134 lodging establishments with approximately 17,600 beds. Compared to 2019, this represents an increase of 23 establishments and more than 3,400 beds. Capacity also continued to expand in the Hanover region. Overall, the number of lodging establishments rose to 364, and bed capacity to just under 34,800.
This trend illustrates that, despite intensified competition, the region continues to be viewed as an attractive destination. The ongoing expansion of the offering has so far been met with stable demand and, at the same time, creates the conditions necessary to accommodate additional trade fair, convention, and event-related travel, as well as growing leisure tourism, in the future.
Hotel Pipeline Is Shaping the Market
The project pipeline underscores the long-term confidence in Hannover as a hotel destination. With the opening of the second Premier Inn in the spring of 2026, the presence of international hotel chains will continue to grow. The new 220-room property complements the existing location on Hamburger Allee and, in particular, strengthens the offerings in the budget and business segments.
At the same time, numerous new accommodations are being created through the revitalization of existing properties. For example, the former Hansa-Haus on Aegidientorplatz is being converted into a Motel One with approximately 200 rooms, with completion currently scheduled for 2027. The former Maritim Grand Hotel on Friedrichswall will also return to the market as a Penta Hotel following extensive renovation. This development is complemented by the conversion of office space into serviced apartments on Karl-Wiechert-Allee.
It is striking that the continued development of the hotel market is increasingly characterized less by traditional new construction and more by revitalizations, repurposing, and changes in operators. In this way, the hotel market is following a general trend in the real estate industry of adapting existing buildings to new usage requirements.
Investment Market
The investment market also remains stable. Following the upturn of recent years, the prime yield for hotel properties in Hanover remains steady at 5.9%. Stable demand and a well-filled project pipeline underscore investors’ continued positive assessment of Hanover as a hotel location.
Outlook: Competition Continues to Increase
The outlook for the hotel market remains positive overall. Hanover continues to benefit from its strong position as a trade fair, convention, and event destination, as well as from steadily growing tourist demand. At the same time, competition will intensify further due to new hotels and additional room capacity. For operators, clear positioning, modern hotel concepts, and a differentiated range of services are therefore becoming increasingly important.
The numerous project developments and revitalization efforts demonstrate that Hannover’s appeal as a hotel destination is highly valued in the long term. International hotel chains, new operator concepts, and the increasing repurposing of existing properties are likely to significantly shape the market’s development in the coming years.
Contact
Dr. Kai Ingwersen
Hanover Region
Economic Development
Department of Economic and Employment Development
