News & Stories
Paris. In the last two weeks, we have reported on the activities of two major Paris-based hotel owners, Extendam and publicly quoted Covivio. However, Luxembourg-based AccorInvest, the former property arm of Accor, has by far the biggest portfolio in Europe and probably the world, with 782 owned or leased hotels located in 27 countries, totaling more than 121,338 rooms. The exclusive agreement with Accor brands expires in December. From 2023, other chain franchisors could thus also fly their flag on AccorInvest properties.
Paris. The French capital city is the centre of the European hotel industry in more ways than one. Not only is it the location of the continent's biggest chain, Accor, but it is also the headquarter of Europe's biggest publicly quoted hotel owner: Covivio Hotels' portfolio added up to 325 hotels and 45,242 rooms at the end of last year, operated by 16 different groups. Now the French REIT plans to expand to other European countries.
Paris. The interest of French investment companies and owner-operators in other European markets is steadily increasing. Quietly but consistently, they are expanding their portfolios. Extendam has experienced rapid growth in recent years. The group was formed only about a decade ago and owned/operated 288 hotels at the end of June 2022. The company is Accor's biggest franchisee.
Munich. The pandemic brought movement to hotel contracts. And the adjustments continue: Future hotel contracts will be shorter, less static, and keep the dialogue between investors/owners and tenants/leaseholders high thanks to "negotiation clauses." The current crisis upon crisis requires greater flexibility and significantly more communication. At the Expo Real hotel conference, a panel of investors/owners, operators and a lawyer specified the new trends that should make life easier.
Hamburg. In reality, expansion has come to a stop, but the basic positive attitude towards the asset class 'hotel' remains. Investors act cautiously, developers languish, operators consolidate. At the 14th Hogan Lovells Hotel Day last week in Hamburg, the different parties – in smaller discussion groups – committed themselves to cooperation and found new approaches for better cooperation.
Milan. Along with logistics, the Italian real estate market is the segment that recorded the largest annual investment increase in 2021, with its total revenue growing by 65% to almost 2 billion euros.
Berlin. Disappointment on the German hotel real estate market: contrary to expectations, the transaction volume in the second quarter of 2022 was noticeably lower than hoped for. The reasons are the uncertainty caused by the Ukraine war, especially about energy prices, the high inflation rate as well as the significantly increased financing costs. It has thus become almost impossible to make forecasts.
Wiesbaden. The conversions of hotels into offices, the projects on hold, the quiet death of both small and large operators along with the advance of alternative accommodation concepts all mean one thing: the German hotel market is in the grip of structural change. Yet the majority of industry representatives appear still to close their eyes to it. Susanne Stauss investigates the causes of this trend.
London. In several countries, the number of transactions has meanwhile strongly increased again The German hotel real estate market, on the other hand, is just sorting itself out again. Institutional investors have almost every second hotel room on their radar. The value per hotel room is rising again.
London. European hotel transactions made a solid recovery during 2021, with deals totalling 16.4 billion euros and doubling that of 2020. Performance was boosted by a strong demand for single asset properties which saw average sales prices per room reach record levels at 260,000 euros.