Many experts, many angles
In mid-June, we teamed up with Investment Briefings Ltd. to invite business partners and international experts from the hospitality industry to Paris for a discussion on the European hotel investment market. “What is the outlook in France and across Europe? What are the key trends that will influence the market?” were the questions we asked with regard to France, Germany and the UK as core markets.
A number of trends and challenges emerged
You´ll find some of the positions taken by the panel members hereafter:
„There is a lot of frustrated capital in the market. If you have hotels to sell, now is the time. In terms of secondary markets, Nice is the market to focus on in the coming years. There is potential for RevPar increases."
Romain Gowhari, Executive Vice President, Head of Transactions France – Hotels & Hospitality Group, JLL
"We are currently preparing our comeback in France. Paris is top of the list, also for VEFA. The regional markets offer attractive investment opportunities for our new funds. There are good opportunities in France for portfolio transactions, including smaller hotels."
Andreas Löcher, Head of Investment Management Hospitality, Union Investment
"Alongside lifestyle brands, extended stay will become one of the most attractive asset classes. I’m convinced that trends based on the sharing economy will change the European hotel markets. Our approach of creating clusters, i.e. in south Paris, is a good way to generate synergies."
Asli Kutlucan, Chief Development Officer, Cycas Hospitality
"I wonder how we will accommodate the new trends driven by the sharing economy in real estate. These trends can only be realised in new hotel buildings. But construction is heavily regulated in Paris."
Alexandre Couturier, Partner, Clifford Chance
French Hotel Investment Barometer 2019 coming soon
At our Paris event, opinions and expectations voiced by the experts and attendees varied widely.
Fleeting snapshots or true picture? Which investment strategy are investors pursuing in practice? What drivers and obstacles do they see for hotel investments in France? Which locations/regions offer the greatest potential? Which social trends are impacting the sector? …
We were curious about these questions. Accordingly, we have launched a survey among French market players in association with BUSINESS IMMO. The results of this first “hotel investment barometer” will be available by the end of September.
Expansion in the French hotel market
Hotel properties remain highly favoured, with broad-based demand from investors. The French hotel market offers excellent prospects for institutional investors. In 2018 alone, average revenue per room increased by 7.3 per cent. Of the EUR 5.6 billion currently invested by Union Investment in hotel properties across nine countries, France accounts for a share of just 3 per cent. We want to significantly increase this figure in order to better reflect the strength of the French market in our portfolio.
Our hotel properties in France
Your contacts for hotel transactions in France
5 strong arguments for Union Investment
Hotels are our core specialism
Specialist skills for specialist properties
What sets us apart is the dual competence that underpins our success. In addition to our real estate and financial expertise, we have in-depth knowledge of the hotel sector and a detailed understanding of the challenges associated with this specialist property type. Hotels require a high level of specialisation from investors – with regard to transactions and also contracts. We address the complexity of the hotel market with modern strategies and innovative contract structures.
38 established hotel brands in the portfolio
We currently manage hotel properties in Europe and the US with a total value of EUR 5.6 billion (incl. mixed-use properties). Acquisition opportunities are boosted by our broad range of funds. We invest in existing properties and turnkey development projects. Some 41 per cent of all our hotels were acquired at the project stage. We work with major market players around the world and currently have 38 big-name hotel brands in our portfolio, from the budget to upscale segments.