Germany’s largest cities are shelling out hundreds of millions of euros on housing thousands of refugees in hotels, as local authorities struggle to cope with a lack of social housing and emergency shelters. Despite a decline in the overall number of asylum applications, the inflow of Ukrainian refugees entitled to initial accommodation has left city administrations with little choice but to turn to the private sector.
According to Bild, Germany’s ten largest cities—plus Essen, Dresden, Potsdam, Hanover, Chemnitz, and Rostock—reported that 11,809 refugees were living in hotels and guesthouses at the end of June. The cost in the first half of 2025 alone amounted to more than €193 million.
