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

Last update : 30 July 2024

HoliProject presents its July press review. The aim is to help you identify the news, trends and thoughts that have marked the last few weeks in the real estate and hotel sectors. Among the subjects highlighted recently: the healthy state of tourism in Europe, with a number of destinations particularly popular, which naturally leads to a certain amount of friction. In a number of areas, and under pressure from local populations, the authorities are being forced to take concrete action to combat the phenomenon of overtourism and its consequences.

Hospitality : are the Olympic Games a threat to the sector ?

Despite the expected influx of 15 million visitors for the Olympic Games, the hotel sector in Paris could find itself in serious difficulty, according to Frank Delvau, President of the Union des métiers et de l’industrie de l’hôtellerie (UMIH). The cause : the numerous traffic restrictions and security measures, with Olympic lanes and security perimeters complicating access to establishments. As a direct result, hotel occupancy rates have not exceeded 55% on some summer weeks. However, Delvau remains optimistic about the long-term benefits of the event. (Capital)

Investment : diversified and international SCPIs inspire confidence

SCPIs are becoming increasingly international. In 2015, 3.6% of assets were invested outside France. Today, this figure has risen to 45%, with Germany the preferred destination. Pioneers such as Sofidy and Corum have initiated this trend. “Europe is their natural playground, but some dare to cross borders” adds journalist Frédéric Tixier. These SCPIs benefit from favourable tax treatment and can diversify risk. However, they are also exposed to fluctuating exchange rates and unstable geopolitical situations. In all cases, the results speak for themselves : the managers concerned claim above-average returns. (PierrePapier)

Investment : diversified and international SCPIs inspire confidence

SCPIs are becoming increasingly international. In 2015, 3.6% of assets were invested outside France. Today, this figure has risen to 45%, with Germany the preferred destination. Pioneers such as Sofidy and Corum have initiated this trend. ‘Europe is their natural playground, but some dare to cross borders’, adds journalist Frédéric Tixier. These SCPIs benefit from favourable tax treatment and can diversify risk. However, they are also exposed to fluctuating exchange rates and unstable geopolitical situations. In all cases, the results speak for themselves: the managers concerned claim above-average returns. (PierrePapier)

Hospitality : An Increase in Transactions is Expected

The coming months promise to be particularly active for negotiators in the hospitality sector, according to the investment director at MCR. Thanks to a more favorable debt market, transactions are now closing at costs comparable to pre-pandemic levels. “Rates have certainly increased overall, but on a historical basis, they remain attractive”, says Sean Gormley, Managing Director at Morgan Stanley. Another interesting point to analyze is that some players are continuing their asset-light strategy. This is the case for the Hyatt Hotels group, which has totaled sales amounting to 775 million dollars in just one year. (Hospitality Investors)

Office Real Estate: Higher Utilization Rates in Europe

In what area do European companies outperform their American counterparts? The answer: they succeed in bringing more employees back to the office, according to a survey by CBRE Group. Office utilization rates have steadily increased on the continent, particularly among large companies. Currently, only one-third of surveyed companies report utilization rates below 40%, compared to nearly half the previous year. Four complementary factors explain this trend and the contrast with the American market: incentive corporate policies, less comfortable housing, quality public transport, and less urban sprawl. (Fortune)

Business hotels : increasing occupancy in Europe

A barometer reveals a positive dynamic for the business hotel sector in Europe since the start of 2024. In Paris, despite a slight fall in the first half of the year, bookings for the year are expected to be on a par with last year. However, the dates surrounding the Olympic Games are having a knock-on effect, although the impact should be put into perspective given the period concerned. At the same time, other destinations are doing well and proving particularly attractive for business travellers. These include Istanbul, Madrid and Prague (Business travel).

Tourism : Europe Reaches New Heights This Year

European tourism is reaching new heights in 2024 with the diversification of destinations. According to the latest quarterly report from the European Travel Commission (ETC), international arrivals and overnight stays have surpassed 2019 figures, with increases of 6% and 7% respectively in the first half of 2024. Among the destinations experiencing notable increases are Southern Europe and the Mediterranean, with Serbia, Malta, and Portugal leading the way. In total, tourism spending in Europe is expected to reach 800.5 billion euros in 2024, representing a 13.7% increase compared to 2023. (European Travel Commission)

Real Estate: European Hospitality Attracts Investors

Major private equity managers and sovereign wealth funds have conducted several significant hotel transactions in 2023, and the trend has continued into the first half of 2024. Blackstone, Starwood Capital Group, and ADIA have made multiple hotel acquisitions. The reason is simple: the hospitality sector offers promising prospects, particularly in Europe. “We have an aging demographic, a rising global middle class, and a consumer preference for experiences that continue to drive long-term demand. This is a global phenomenon,” explains David Kellett, a representative of Invesco. (Pere News)

Tourism : how Austria is responding to changes in the ski market

As a direct consequence of global warming, Austria is completely reinventing its tourism model. Cycling and hiking are now at the heart of its summer offering, enabling the country to make the most of its Alpine landscapes. Since the pandemic, the summer season (May to October) has outstripped the winter in economic terms, generating more than €15 billion out of an annual total of €29.5 billion. This shift marks a radical change for a country traditionally focused on winter sports (Le Figaro).

Tourism: Protests Against Overtourism in Barcelona

Thousands of Barcelonans have protested against overtourism by spraying visitors with water and symbolically closing the entrances of hotels and restaurants. Supported by over 140 organizations, this demonstration comes ahead of a summer season expected to break all records. The reason: Barcelona, which hosts 12 million tourists annually, is seeing its healthcare services, waste management, water supplies, and housing put under pressure. Residents are calling for urgent and drastic measures to protect the city and its inhabitants. The city council recently voted to increase the tourist tax. Could this be the start of a broader movement across Europe? (Euronews)

Tourism : Switzerland seeks to counter overtourism

Switzerland is seeking to prevent overtourism by rebalancing visitor flows. The approach is simple: encourage tourists to explore lesser-known destinations and discover the country during the low season. The reason for this approach: certain regions, such as Iseltwald, have experienced a sudden influx of visitors following a media phenomenon linked to a Korean series. According to Martin Nydegger, Director General of Switzerland Tourism, there is ‘no widespread problem of overtourism’ in the country, but there are ‘temporary and local’ bottlenecks. This is why we’re planning a range of measures, including walking tours and autumn campaigns. (20 minutes)

Investment : a delicate and unstable period for SCPIs

After a number of prosperous years, real estate investment trusts (Sociétés Civiles de Placement Immobilier – SCPIs) are going through a difficult period, impacted by the rise in interest rates. This has led to a fall in the value of assets and a decline in investor interest in paper-based property, in favour of more liquid and profitable investments. In the first quarter of 2024, capitalisation was down and new fund inflows plummeted. However, a handful of new SCPIs stood out with yields of over 6%, enabling them to capture the majority of new subscriptions. Meanwhile, long-established SCPIs are struggling to attract investors. (Le Monde)

Commercial Real Estate: Tokenization of Assets Revolutionizes the Market

Decentralized finance (DeFi) is disrupting the commercial real estate sector through the tokenization of assets. According to KPMG, this technology allows institutional investors to acquire shares of iconic buildings via blockchain, making the market more accessible and transparent. Despite particularly slow adoption, interesting initiatives are emerging, such as the financing of a Hampton by Hilton hotel at El Salvador International Airport. However, reputational challenges persist, inevitably requiring robust security measures to reassure financial institutions. (Cointribune)

Tourism: sustainable hotels at the heart of discussions

The latest edition of La Fabrique du Tourisme brought together experts from the hotel industry to discuss the concept of the positive-economy hybrid building (PHEB). The principle behind this innovative architectural model is to optimise the ecological value of buildings by reusing materials and making intensive use of space. The aim is clear: to enable the hotel sector to adapt to the challenges of climate change. Discussions focused in particular on the arrival of shared electromobility and energy self-consumption which, if taken into consideration, will ‘make a major contribution to the financial performance of real estate investments’. (Hospitality On)

Date de première publication : 30 July 2024

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