Press Review

August 2024: the real estate, tourism and hospitality press review

Last update : 2 September 2024

What happened in August 2024 ? To give you the best possible start to the new year, we have selected the most relevant articles from recent weeks, providing a detailed understanding of current issues, market changes and emerging trends in tourism, real estate and investment. Among the most talked-about topics: the impact of the Olympic Games, the remarkable performance of the hotel industry in Europe and the transformations in the commercial real estate sector.

Investment: Stepstone Bets on Hospitality Despite Sector Volatility

Stepstone Group, a leading player in private investment, places the hospitality sector at the heart of its strategy, which today accounts for 10 to 20% of its transactional activities. Josh Cleveland explains the rationale behind this choice: “Hospitality is cyclical, but in the long run, it has outperformed other real estate asset classes, despite being more volatile.” The only condition for success: having solid financial foundations and liquidity. “Many institutional clients, such as sovereign wealth funds and large pension funds, are very active in this sector,” reveals Cleveland. (Hospitality Investor)

Real Estate: Strong Performance in Retail Sector

In the United States, the commercial real estate market has undergone major transformations since the pandemic. Offices are under pressure due to the rise of remote work, leading to a sustained and logical decline in demand. However, the retail sector is adapting better, with a partial rebound facilitated by the growth of convenience stores and some major retail chains. For these properties, vacancy rates remain low and the stability of investment returns is maintained. “Retail is the only segment for which the overall vacancy rate has decreased since 2019,” analyze Yilun Zha and Tracy Hadden Loh, although variations persist across regions and neighborhoods. (Brookings)

Tourism: the first economic report on the Olympic Games

Quel bilan économique tirer des Jeux Olympiques de Paris 2024 ? Dans les secteurs de l’hôtellerie et de la restauration, les résultats sont mitigés. D’un côté, les établissements situés à proximité des sites olympiques ont largement profité de l’événement, avec une hausse de 16% des nuitées et des tarifs multipliés par deux. De l’autre, dans le centre de Paris, certains restaurateurs ont traversé une période difficile, marquée par une baisse notable de la fréquentation. Malgré ces disparités, la Banque de France estime que les Jeux Olympiques devraient contribuer à une croissance de 0,25 point au troisième trimestre 2024. À cela s’ajoutent les bénéfices à long terme pour les acteurs du tourisme. (France Info)

Tourism: Switzerland attracts a growing number of American travellers

The Swiss tourism market is experiencing significant growth, thanks in particular to the influx of American visitors. By 2023, the United States will have become the second-largest source of foreign tourists after Germany, generating more than 3 million overnight stays. This popularity is the result of the efforts of Switzerland Tourism, which has capitalised on ambitious advertising campaigns, notably with Hollywood stars such as Anne Hathaway alongside Roger Federer. It’s worth noting that American tourists, who spend an average of CHF 280 per day, prefer to stay in top-of-the-range hotels. This trend is set to accelerate even further in 2024. (RTS)

Investment: these new temporary usufruct funds

Asset management company France Valley is innovating with two funds dedicated to the temporary usufruct of SCPIs. This mechanism, hitherto reserved for institutional investors, now enables investors to receive quarterly income for an initial investment of more than €100,000. The appeal of this model is undeniable: it offers predictable performance, independent of fluctuations in the real estate market. Arnaud Filhol points out: ‘80 to 90% of these funds will be extinguished within ten years, the average duration of temporary dismemberments’. These funds are aiming for a return of just over 4.52% in 2023. (L’Express)

Tourism: Major Hotel Groups Perform Well in the First Half of the Year

Major international hotel groups such as Accor, Wyndham, Hilton, and Hyatt have shown strong performance in the first half of 2024. For instance, Accor reported an 11% increase in revenue, particularly due to its Luxury division. Meanwhile, Wyndham’s net profits increased by 23%. These results highlight the resilience and strength of the sector, with significant revenue increases despite economic challenges. Additionally, Compagnie des Alpes also showed excellent performance, largely driven by its ski resorts during the winter season. (Hospitality On)

Commercial Real Estate: What Will the Offices of the Future Look Like?

Commercial real estate is still struggling to adapt to new work practices. With high interest rates, often empty offices, and an 11% price decline since March 2022, the sector remains under pressure. “Restaurants, hotels, and entertainment venues are full. Only offices seem to have a problem,” observes Dror Poleg, an economics professor. Experts therefore emphasize the need to rethink workspaces to meet current needs, as mixed-use buildings thrive. According to Dror Poleg, the offices of the future will resemble “creative places” with high human intensity, similar to those designed by the American company WeWork. (MIT Management Sloan School)

Tourism: The Hospitality Sector Is Resilient and Transforming

In the hospitality sector, investment opportunities are becoming increasingly tangible as the gap between supply and demand gradually narrows. However, seizing these opportunities remains particularly challenging in an unstable environment. Hospitality Investor highlights several observations, starting with the fact that the market has gone through a full cycle over the past two decades, from the financial crisis of 2008 to today, demonstrating its resilience. The sector has transformed, enabling the emergence of a high-end segment, and the ecosystem has expanded with the democratization of other types of assets, such as co-living spaces. (Hospitality Investor)

Investment: a slight but fragile rebound in new fund inflows for SCPIs

The good news is that net inflows into unlisted real estate funds returned to positive territory in the second quarter, with a modest increase of €88m. This is a positive sign after several difficult quarters. Against this backdrop, SCPIs continue to stand out, with net inflows on the rise (+18.5%), thanks in particular to a significant fall in redemptions. OPCIs, on the other hand, continued to experience net outflows, with some showing a marked decline. It should be noted, however, that the problem of units awaiting withdrawal persists. These account for 2.9% of SCPI capitalisation, a historically high level. (PierrePapier)

Tourism: Swiss hotels seek to attract cyclists and runners

With the growing popularity of cycling and trail running in the Swiss Alps, many hotels are adapting their services to attract this active clientele with good purchasing power. Advice on routes, maintenance kits, massages: the range of services is evolving and diversifying to meet the expectations of sports enthusiasts. Several establishments, located close to trail paths and Bike Parks, are taking advantage of this trend to appeal to these outdoor enthusiasts. The Swiss Running Hotel label has grown out of this trend, bringing together around twenty establishments, mainly in Valais and Graubünden, to meet the needs of sporty holidaymakers. (Le Temps)

Commercial Real Estate: The Cost of Energy Transition Raises Questions

Commercial real estate loans from banks could face a new risk: the increasing costs associated with the energy transition. While remote work remains a well-known threat to office spaces, Citi highlights this new pressure now weighing on lenders. What will be the impacts on the market, the profitability of investments, and repayment capacities? The stakes are considerable. For example, in Australia, banks hold approximately 450 billion dollars in loans in this sector, representing 40% of their loans to non-financial businesses. (Australian Financial Review)

Tourism: the niche of child-free holidays sparks controversy

Child-free holidays are becoming increasingly popular in France, and more and more establishments are adopting this formula. Although these No Kids offers currently represent only 4% of the tourist market, they nevertheless reflect a change in travellers’ expectations, with holidays perceived as therapy. However, this trend is not without controversy. ‘It’s a sign that intolerance towards children is becoming commonplace’, says Laurence Rossignol, author of a bill to ban the practice. And yet, as Jean-Didier Urbain points out, this is not a new idea. ‘In its early days, Club Med was for adults only’, he points out. (La Croix)

Investment: the hotel industry is a safe haven

In a sluggish Paris real estate market, the hotel sector is proving to be a safe haven for investors. Since the start of 2024, the sector has attracted more than €900 million of investment, with four deals exceeding €100 million. Among the biggest deals is the Pullman Paris Tour Eiffel, acquired for €330 million by Morgan Stanley and QuinsPark. Next came the Hilton Paris Opéra (€244m), bought by City Developments Limited, and the Mandarin Oriental (€220m), sold to Gruppo Statuto. (Décideurs Magazine)

Tourism: Could Amazon Become a Major Player in the Sector?

Could Amazon become a major player in the travel industry? Experts are divided. While the e-commerce giant has a large customer base, a powerful brand, and valuable data, the complexity and fragmentation of the travel industry hinder its expansion. “Amazon has the potential to disrupt almost any market it chooses to target,” says Peter O’Connor, professor of strategy. “However, travel could be the exception.” The failure of Amazon Destinations in 2015 is a prime example. Some believe that a direct entry into this market would be challenging, except through acquisitions like Expedia or TripAdvisor, or via strategic partnerships. (Hospitality Net)

Date de première publication : 2 September 2024

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