Copenhagen's hotel market: German investors focus on growth and sustainability!

Copenhagen's hotel market: German investors focus on growth and sustainability!

The Copenhagen hotel market is currently experiencing a remarkable upswing as German investors show increasing interest in Denmark's capital. Loud AHGZ Demand in the hotel segment is strong, driven by a variety of factors. These include Denmark's economic stability, dynamic urban development, a growing tourism sector and increasing demand for ESG-oriented projects.

The constant increase in tourists not only promotes hotel occupancy but also leads to new hotel investments. German investors are increasingly viewing Copenhagen as an attractive destination for their projects. In this context, urban concepts and hotels in particular are becoming increasingly important for institutional investors.

Stable economic conditions

Copenhagen benefits from stable economic conditions that are valued by investors. With an unemployment rate of just 2.9 percent (as of April 2025) and GDP growth of around 3.6 percent, Denmark shows promising economic health. Inflation is also at a moderate level at 1.5 percent.

The state budget regularly shows surpluses, while public debt remains below the EU limit at 29.7 percent of GDP. These factors ensure a high level of planning security, which is particularly important for investors as the Danish krone is firmly tied to the euro.

Growth in the real estate market

The real estate market in Copenhagen shows high demand, both for residential properties and hotels. According to forecasts, rental growth of around 5 percent per year is expected. This is fueled by the influx of people into the city and the increased interest in modern new buildings and sustainability projects.

Large-scale urban development projects, such as the Nordhavn harbor district, which is intended to provide 40,000 jobs and residents on an area of ​​200 hectares, show the vision of sustainable urban development. ESG criteria are integrated into the planning basis, which increases the range of ESG-compliant real estate projects.

Large investment projects and transactions

The attractiveness of Copenhagen is also reflected in several large-volume transactions. For example, the Quantum Group acquired the “Cactus Towers” ​​in Copenhagen with 500 micro-apartments for DKK 1.4 billion. Other notable investments include the “Svanemølleholm” and “King’s Square Areal” projects by KanAm Grund Group, as well as Pictet Asset Management and VIGA Real Estate’s commitment to “Rødovre Port” worth DKK 1.3 billion.

Local market knowledge and strategic partnerships are crucial for international investors to successfully enter the Danish market. Companies such as Robert C. Spies Nordics, which advise and support investors in real estate transactions, provide support.

Overall, Copenhagen's hotel market and associated real estate projects offer extensive opportunities for investors as the city continues to grow in importance. This is supported by the combination of sustainable development, stable economic conditions and a growing number of tourists, making Copenhagen a very attractive destination.