Property Pinch

In Munich, Where Hotels Rooms Are Hard to Find, Local Businesses Begin Building Own Overnight Accomodations

Hotel Bayerischer Hof, Munich, July 2014 Source Hotel Bayerischer Hof
Tourism is rising to Munich, forcing some local businesses, such as BMW, to build their own hotels to accomodate corporate visitors.
  • Why it matters

    Why it matters

    The lack of hotel accomodations in Munich is a threat to local businesses trying to house visitors during the midst of a tourism boom.

  • Facts

    Facts

    • The start-up center attracts scientists and businesspeople from around the world to its trade shows and to Munich’s Oktoberfest celebrations.
    • Other companies such as Ikea already operate hotels and automaker BMW next year plans to open its own 270-room corporate hotel in Munich.
    • The new hotel being built by BMW will need to reach an average of 67 percent occupancy to turn a profit.
  • Audio

    Audio

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Peter Hanns Zobel never planned a career as hotelier.

With his doctoral degree in pharmaceutical technology and executive positions at drug research giants such as Merck KGaA, Novartis Pharma and Horizon Pharma Inc., he seems ill-suited to be choosing furnishings and fixtures for a five-star hotel.

Yet here he is proudly leading tours through the futuristic, elliptically shaped new building that will open this fall on the 25,000-meter campus of the Innovation and Start-Up Center for Biotechnology, known by its German acronym, IZB, in Martinsried near Munich.

“The business model of running a hotel is new to us,” said Mr. Zobel, IZB chief executive officer. “This is really entering new territory.”

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