The Hirmer group, one of Munich’s most well-known historical companies in the men’s clothing sector, is currently in the process of structural changes.
The group, founded in 1914 and owned by the same family for three generations, currently employs around 800 people (compared to 1,800 in 2019). Its main department store is located on Munich’s pedestrian zone, near the Frauenkirche cathedral, a symbol of the city that was completed in 1494. The board of directors announced that it will now focus again on its core activities, while its large-scale involvement in the real estate sector, which began around 15 years ago, will be gradually reduced.
According to the group’s management, real estate activities have shown a tendency to shrink in recent years. From now on, they will be limited to the active management of selected properties, while part of the portfolio is expected to be put up for sale. The main reasons cited are the rise in inflation as well as the significant increase in construction and maintenance costs, conditions that have made real estate investments increasingly less attractive in the post-pandemic period.
Also, according to reports, prior to this decision, internal disagreements had occurred within the shareholder family. In particular, cousins ??Christian and Ulrich Hirmer are said to have differed both in terms of the business strategy in the real estate sector and in terms of the group’s long-term orientation.
As part of the broader reorganization, a change in the group’s management was also announced. Mr. Christian Hirmer, based on the planning, is expected to leave the shareholder structure around mid-2026. However, Mr. Ulrich Hirmer will remain a shareholder and at the same time director of the commercial activity, with the family’s goal of adapting the group to its main business, that of fashion, in order to secure and strengthen its strong position in the market.
The above decision is part of a broader context of developments and the Hirmer group, in recent years, in addition to retail trade in the fashion sector, has significantly strengthened its presence in the real estate and hotel sectors. The group had a significant real estate portfolio in Germany and in particular in the tourism sector, such as the Elephant Hotel in Weimar – a historic luxury hotel since 1696, owned by the Hirmer group since 2017 – and the Bachmair am See Hotel in Rottach-Egern, which was managed by the Bachmair/Rauh family from 1826 to 2019 and has been closed for renovation since 2021. It is also noted that since 2018 the group has taken over the “Travel Charme Hotels & Resorts” hotel chain.
As early as 2024, the Hirmer group proceeded with the sale of the “Travel Charme” and “Urban Nature” hotel brands to DSR Hotel Holding, a subsidiary of the Rewe group, which is among the largest hotel companies in Germany. This move was seen as the first strong indication of the group’s intention to exit the real estate and hotel sectors. The recent announcement of further reductions in real estate activity is therefore a natural consequence of this course. How the group’s change of strategy will further shape itself remains to be seen.
The information comes from the Office for Economic and Commercial Affairs in Munich.
