Opening a guesthouse or small hotel in Germany: duties and direct bookings

Trade registration and hospitality law

If you accommodate guests commercially, you register the business with the trade office under § 14 GewO (Gewerbeordnung, the Trade Regulation Act). In Germany, you need no special permit for accommodation itself. Breakfast and drinks are also straightforward as long as they are only for overnight guests: under § 2 (2) no. 4 GastG (Gaststättengesetz, the Restaurant Act), serving drinks and prepared food to resident guests as part of an accommodation business requires no licence.

It is a different matter if your breakfast room opens as a restaurant in the evening or the hotel bar also serves guests from outside. Then you are running a restaurant business and, to serve alcohol, you need a Gaststättenerlaubnis or a notice (Anzeige), depending on the state. Our guide to the Gaststättenerlaubnis shows which rule applies in your state. The general start-up process is covered in Opening a restaurant in Germany.

Registration form under the Bundesmeldegesetz

The hotel registration duty is set out in §§ 29 and 30 of the Bundesmeldegesetz (Federal Registration Act). Since the Bürokratieentlastungsgesetz IV (Fourth Bureaucracy Relief Act), in force since 1 January 2025, only foreign nationals have to sign a special registration form by hand on the day of arrival (§ 29 (2) BMG). German guests no longer need to fill in a form. Accompanying foreign spouses, civil partners and minor children are only recorded by number.

• Content (§ 30 (2) BMG): arrival and expected departure, surname, first name, date of birth, nationalities, address, number and nationality of accompanying persons and the serial number of the passport or passport substitute.
• Check: you compare the details with the ID document and note any discrepancies.
• Keep: for one year from departure, then destroy within three months (§ 30 (4) BMG).
• Digital: electronic registration forms are allowed if data protection and technical requirements are met.

Overnight tax and city tax

Many cities levy an Übernachtungsteuer (overnight tax), also called bed tax, accommodation tax or city tax. It is a local expenditure tax: whether it applies, how much it is and which overnight stays it covers is set by each municipality in its bylaws. Typically it is a percentage of the room price or a fixed amount per person per night. As the host, you collect the tax, report it and pay it over to the city.

In 2022, the Federal Constitutional Court (Bundesverfassungsgericht) ruled that such overnight taxes are compatible with the Basic Law and may also cover business trips (order of 22 March 2022, 1 BvR 2868/15 and others). Some cities exempt business trips anyway. Show the tax transparently on your website and in your booking terms so guests are not surprised at check-out.

Fire safety and building law

Special building regulations apply to accommodation businesses. Under the Muster-Beherbergungsstättenverordnung (model accommodation regulation), the special rules for escape routes, fire detectors, emergency lighting and room doors apply to buildings with more than 12 guest beds. The states have implemented this differently: Hamburg and Saarland, for example, adopt the 12-bed threshold, in Bavaria the Beherbergungsstättenverordnung applies above 30 guest beds, and Hesse also starts at more than 30 beds with a guideline. Further requirements such as fire alarm systems often only apply to larger establishments.

Stars and classification

Hotel stars are voluntary in Germany. The Deutsche Hotelklassifizierung (German Hotel Classification) run by DEHOGA, the German hotel and restaurant association, assesses businesses against uniform national criteria; since 2025, a new catalogue with 239 criteria has applied. For guesthouses, inns and Pensionen, there is a separate G-Klassifizierung with stars. A classification costs fees and effort but gives guests orientation and helps on platforms and with tour operators. Important: you may only advertise with stars if you are actually classified.

Booking platforms and best-price clauses

Booking.com, Expedia and other platforms bring reach but charge commission on every booking. For a long time, they required that hotels could not be cheaper on their own website than on the platform. On 18 May 2021, the Federal Court of Justice (Bundesgerichtshof) ruled that these narrow best-price clauses used by Booking.com violate competition law (KVR 54/20). Since 14 November 2024, Booking.com has also been bound by the Digital Markets Act as a gatekeeper: under Art. 5 (3) DMA, the platform may not prevent accommodation providers from offering the same rooms through other channels at different prices or conditions.

For you, this means: you may offer lower prices or better conditions on your own website, such as a direct booking discount, free breakfast or flexible cancellation. Still check your contracts with smaller platforms that do not fall under the DMA, and get advice if in doubt.

Website with direct booking

A good hotel website shows rooms with real photos and prices, breakfast, location, directions and reviews, and leads to a booking in just a few clicks. It also needs a complete legal notice, privacy information and, if guests can complete bookings online, the requirements for accessible digital services under the Barrierefreiheitsstärkungsgesetz (Accessibility Strengthening Act), unless your business is exempt as a micro-enterprise. Which other content matters is explained in our guide to website content. With a review QR code at reception, you collect more Google reviews, which help you win direct bookings.