The German club reached the final of Europe's prestigious club competition in 2010 and 2012, but failed to win on either occasion.
"I think Bayern belong to the big favourites to win the Champions League because they are stronger this season than last term," Hitzfeld told Welt.
"They will also conquer the Bundesliga this season. The strength in depth is excellent. Bayern can win 5-10% more games than they did last season.
"[Bastian] Schweinsteiger's intelligence of play is of the highest quality. He's the spirit of the team, and belongs with the best in the world."
Bayern began their Champions League Group F campaign with a 2-1 victory over Valencia at the Allianz Arena earlier this month.