mrp hotels quarterly with Erste Group, LLB Immo KAG, Lindner Hotel Group and Livory Capital
- Geopolitical uncertainty, rising costs and shifting demand are putting pressure on operators and investors
- Budget and serviced apartment products remain stable, while full-service hotels are facing increasing challenges
- Asset management is evolving into a key steering function across the entire hotel lifecycle
- Operational efficiency, flexibility and partnership-based collaboration are decisive for commercial success
Berlin/Vienna, 7 May 2026. Active asset management is increasingly becoming the deciding factor for the success or failure of hotel real estate in the current market environment. This was the key takeaway from the latest “mrp hotels quarterly”. During the webinar, Martin Schaffer, Managing Partner at mrp hotels, and Hannah Struck, Senior Asset Manager & Consultant at mrp hotels, discussed the industry’s current challenges and strategic priorities with Rainer Singer, Head of Major Markets & Credit Research at Erste Group, Michael Schoppe, Managing Director at LLB Immo KAG, Henning Schneekloth-Plöger, Vice President Portfolio & Asset Management at Lindner Hotel Group, and Christian Habermann, Fund Manager at Livory Capital.
The discussion focused on how hotel real estate can be actively managed under changing market conditions. Performance is no longer driven by demand alone, but increasingly by the ability to manage costs, operations and strategy in a targeted way.
“Today, it is no longer enough to focus solely on rent. Asset management means continuously analysing a hotel’s performance and strategic positioning, creating transparency around its economic development and, where necessary, providing targeted impetus,” says Martin Schaffer.
Uncertain Market Conditions Increase the Need for Action
The economic environment remains challenging. Rising energy prices, geopolitical tensions and subdued consumer spending continue to shape the market. Rainer Singer describes the situation as follows: “We are operating in a highly dynamic environment in which underlying conditions are changing almost daily.” The outlook for monetary policy also remains uncertain. “The longer the crisis continues, the more likely interest rate increases become,” says Singer. For asset managers, this means that strategies must be reviewed continuously and adjusted at short notice where required.
Key Metrics Show Growth — but at the Expense of Margins
A look at the portfolio analysed by mrp hotels, comprising around 20 hotels in the DACH region, illustrates current market developments: demand remains stable, but profitability is coming under increasing pressure. In the first quarter of 2026, occupancy rose by 2.3 percent year-on-year, while average daily rate increased by just 1.0 percent. RevPAR, or revenue per available room, grew by 3.4 percent, driven primarily by higher occupancy.
“The focus was clearly on volume rather than rate. Guests have become significantly more price-sensitive,” explains Hannah Struck. At the same time, costs continue to rise. While GOPPAR, or gross operating profit per available room, increased by 3 percent, energy and labour costs continue to weigh noticeably on margins. Struck adds: “Profitability remains a central issue. In particular, the cost side is moving back into sharper focus against the backdrop of the current geopolitical situation and rising oil prices.”
Demand Is Shifting — Flexibility Becomes Critical
Demand for hotel rooms across all segments is not collapsing, but it is changing significantly. Travel is being planned at shorter notice, regional destinations are gaining in importance, while some international connections are coming under pressure. “We are not seeing a classic decline in demand, but rather a volatility booster,” says Henning Schneekloth-Plöger. “For asset management, this means that markets, target groups and distribution channels need to be actively managed — and in much shorter cycles than before.”
Segment Differences Are Becoming More Pronounced
Hotel market performance is increasingly dependent on segment. “The budget segment is currently performing clearly better than traditional four-star hotels,” says Michael Schoppe. In a market environment shaped by cost and labour pressures, budget and economy hotels as well as serviced apartments with lean service structures are benefiting in particular. “Classic full-service hotels, by contrast, are under significantly greater pressure than they were just a few years ago,” adds Schneekloth-Plöger.
Asset Management Becomes More Operational and More Central
The demands placed on asset management are increasing significantly. In addition to strategic responsibilities, operational issues are moving further into focus. “Hotels that are willing to adapt their concepts and become more flexible operationally are navigating the current environment much more successfully,” says Struck.
At the same time, collaboration between owners and operators is becoming increasingly important. Transparency and regular dialogue are becoming decisive success factors, Schoppe notes. He emphasises: “A structured and open dialogue between owner and operator is indispensable today.”
Investment Is Necessary — but Execution Remains Challenging
Despite clearly identified areas for action, investments are often postponed, particularly in energy efficiency. Christian Habermann sees this as a structural issue: “Especially in the current market phase, we often see economically sensible investments not being implemented because owners and operators are pursuing different interests. This makes it all the more important to develop measures jointly and to create partnership-based solutions. Only when both sides pull in the same direction can the economic potential of an asset be sustainably unlocked.”
At the same time, the industry remains in a state of constant adjustment. “We have been operating in crisis mode for years — and that forces us to become significantly more agile,” says Schneekloth-Plöger.
Conclusion: Asset Management as an Active Value Driver
“In an increasingly volatile market environment, active asset management is becoming the decisive value driver for hotel real estate. Rising costs, uncertain demand and structural shifts can no longer be absorbed passively. They require clear strategic decisions, operational intervention and close alignment between owner and operator interests. Today, asset management is the key lever for positioning hotels in an economically stable and future-proof way. Success is no longer determined by market developments alone, but by the quality of management and control,” Martin Schaffer concludes.
A recording of the online panel (in German) is available via the following link:
https://www.linkedin.com/events/7451929363509391360?viewAsMember=true
