Viewpoints with bite

When entering a hotel in Germany in the year 2000, guests would often still meet the owner personally at the reception desk. Today, check-in is frequently completed digitally via smartphone – efficient, standardised and in some cases without any direct personal interaction.

In Kaiserslautern, ECE plans to convert vacant retail space in the “K in Lautern” mall into a 139-room hotel, raising concerns among existing hoteliers already facing low occupancy rates and recent competition from a 146-room Holiday Inn Express opened in 2023. The project highlights a critical question: who bears the risk of new hotel developments in markets with existing overcapacity, especially when hotel investments are difficult to reverse and failed projects can become permanent urban planning burdens?

Sustainability is no longer a voluntary extra for hotels, but a necessary obligation for long-term competitiveness. “Many corporate clients who book with hotels have to account for the sustainability of the properties they use and are actively requesting sustainability reports,” explains Brigitte Gruber, Managing Partner of Horwath HTL Austria.

The past year has highlighted both the challenges and the resilience of the DACH hospitality sector. Germany and Austria have had to contend with sluggish growth, high energy costs, and persistent inflation, while broader geopolitical uncertainty – from international trade tensions to the ongoing war in Ukraine – continues to weigh on sentiment. Switzerland, by contrast, has remained comparatively stable, supported by strong domestic demand and its position as a high-value global destination. These differing dynamics illustrate the complexity of the region but also underline its importance as one of Europe’s most resilient markets.