German hospitality sector sees revenue tumble in 2025

Turnover for Germany's hospitality sector was down by a price-adjusted 2.1% in 2025, according to official figures published on Thursday.

While revenue was up 1.4% year-on-year in nominal terms, this was only due to rising prices, the Federal Statistical Office said, citing preliminary figures.

Hotels and other accommodation recorded a real decline in turnover of 2%, while revenue in the catering industry dropped by 2.2%.

A decline in price-adjusted turnover was even reported in the festive month of December, when companies and families traditionally hold Christmas parties.

While German hotels were boosted by a record level of overnight stays in 2025, the catering industry has been under pressure for years, amid rising energy and food costs and consumer restraint.

Going out to eat has become more unaffordable as prices have been rising overall.

While the government cut VAT tax on restaurant food from 19% to 7% at the start of the year, many businesses have so far failed to pass on the change to consumers, citing growing energy, goods and wage costs.

Restaurant meals were 3.6% more expensive in January compared to the same month a year earlier, despite the tax cut, according to the statistical office.