A boom in German tourism as global travellers discover the charms of Berlin, old German palaces and festivals year-round is also driving the hotel market, with 193 new hotels rated two stars or higher set to open next year.
Tophotelprojects, a Rotenburg-based market analyst, said about 23,300 new hotel rooms would be added to the market in 2016. So far in 2015 120 new hotels have opened.
The German section of the International Hotel Association (IHA) said the development mirrored the ongoing boom in the country's hospitality sector.
"The causes for the strong numbers are multi-faceted," the IHA said in its latest report on the hotel market.
"Germany is a holiday destination magnet and is attracting more and more foreign guests."
The Germans themselves had also been in a mood for frequent city breaks and the prices of hotel stays were comparatively cheap, the IHA said.
In 2014 the average nightly hotel price was 87 euros ($A130) - not including breakfast or GST - 2 euros lower than the European Union average.
There are 13,000 hotels with about 600,000 rooms in Germany.
The hotel association said the trend was towards bigger hotels.
Smaller hostelries, especially guesthouses and lodging houses which were often family owned, were tending to go out of business, because they could not compete on price or standards.
In 2014 the number of beds increased by 0.5 per cent with the number of businesses decreasing by 2 per cent.
Most of the new hotels had either three or four stars. The average occupancy had also increased by 2.3 per cent to 70.1 per cent.
