International five-star hotel group Kempinski has reported an 8.5% increase in turnover to €178m (£109m) in the first six months of the year.
In its hotels outside Germany, turnover increased by 22% compared with last year.
In Germany, it fell by 2%, but there was like-for-like growth of 3%.
During the six months Kempinski's management contracts expired at three of its German hotels.
These were the Elephant in Weimar, the Sporting Club, outside Berlin, and the Surstenhos in Leipzig.
Pre-tax profit dropped by €970,000 (£600,000) to €610,000 (£380,000), reflecting the sale of the Kempinski hotels in Hamburg and Frankfurt and their conversion to management contracts.
The company said it still expected to achieve the €1.5m (£920,000) pre-tax profit that it forecast at its annual general meeting in July.
Kempinski is owned by the Thai royal family. It has 36 hotels, which it leases through management contracts.
Two are being built in Egypt, in Cairo and Sahl Hasheesh. They will open in 2003.
Kempinski has 12 hotels in Germany. The others are in France, Hungary, Spain, Turkey, the Ukraine, Switzerland, Morocco, the United Arab Emirates, Indonesia, India, China and Australia.