Real estate: how to invest in the hotel industry?

At the end of the year, the French hotel industry dresses up to welcome customers in a festive atmosphere. In France, however, tourism is almost permanent, punctuated by holidays and professional, cultural and sporting events. After the health crisis, “Tourist arrivals quickly returned to 2019 levels, the benchmark year which represented the peak of activity”notes Johanna Capoani, deputy director and head of the hotel division of management company Swiss Life AM Europe.

After 2023, which should mean a record of activity, “2024 and beyond still look promising”, estimates Pierre Dupuy-Chaignaud, deputy director of 123 IM, in charge of the tourism division. In addition to being a world-famous destination, Paris will host the Summer Olympics in seven months.

Almost 16 million visitors are expected, while Ile-de-France has only 160,000 hotel rooms. With rates already surging and occupancy rates set to saturate, the horizon appears bright. “This is a real estate segment that is doing remarkably well compared to office and residential”clarifies Jonathan Donio, Deputy CEO of Eternam.

Also read: Article reserved for our subscribers The hotel industry is defying the real estate crisis: “Currently, the hotel industry is a kind of El Dorado”

Well known to institutional investors, hotel properties are, less well known, also available to individuals. However, it is important to note the rare entrance door.

Three specialized SCPIs

First there is real estate crowdfunding. From time to time, files relating to hotel acquisitions appear on the market. Here the risk is high because performance is based on the success of a single operation. The recently launched Wally platform, which aims to democratize hotel investments, offers tickets from as little as 10 euros. “The first financed purchase concerned an operating hotel in Toulouse. The annual return is expected to be between 10% and 13%, distributed to investors quarterly. Other files are being studied in Lille, Lourdes and Marseille”says Nathan Zappelli, president and co-founder of this website.

Another narrow access road leads to real estate investment companies (SCPI). Only three vehicles play the hotel and more broadly accommodation card: Atream Hôtels, Aestiam Cap’Hébergimmo and Logipierre 3.

Their respective yields in 2022 are 5.05%, 5% and 5.31%, above the sector average of 4.53%, according to the French Association of Real Estate Investment Companies. “We invest in France and Northern Europe in two to four-star hotels and thriving outdoor hotels. Rent increases because it is indexed to inflation. In 2024, the turnover of our addresses should increase further »suggests Pascal Savary, president of management company Atream.

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