Since hotel rates in Germany are (from the consumcer's perspectice) all tax inclusive you will most likely not see any price decrease. I saw the consequences black on white on an invoice for a prepaid stay I had today.

The deposit was pocketed at a VAT rate of 19% and the rate was 85.71 plus 19% VAT (= 16.29) which ends up with 102.00. The invoice now shows a rate of 95.33 plus 7% VAT (= 6,67) and the final price again is 102.00.

The hotel wins 9,62 and my stay gets 9,62 more expensive (as a business I get VAT refunded). From my perspective it is not a tax decrease but a high (= 10%) rate increase.