DACH Hotel & Chains Report 2026
What makes B, C and D locations work
Demand structure, not location class, decides hotel success outside the primary markets
Hotel success in B, C and D locations depends on demand structure. Class B locations such as Dresden rely on diversified demand; Class C locations such as Kiel on a narrower regional base; Class D locations such as Villingen-Schwenningen typically on one key driver. Success conditions: meeting and conference capacity assessed via TRevPAR, online reputation score above 8.0, and proximity to at least two independent demand generators.