At the end of the year, the French hotel industry is getting dressed up to welcome customers in a festive atmosphere. But, in France, tourist activity is almost permanent, punctuated by holidays and professional, cultural and sporting events. Following the health crisis, “Tourist attendance quickly returned to its 2019 level, the reference year which constituted a peak in activity”notes Johanna Capoani, deputy director and head of the hotel division of the management company Swiss Life AM Europe.
After a year 2023 which should mark a record of activity, “2024 and beyond still look promising”, estimates Pierre Dupuy-Chaignaud, associate director of the company 123 IM in charge of the tourism division. In addition to being a world-famous destination, Paris will host the Summer Olympic Games in seven months.
Nearly 16 million visitors are expected while Ile-de-France has only 160,000 hotel rooms. With rates already soaring and occupancy rates set to saturate, the horizon seems clear. “This is the real estate segment that is doing remarkably well, compared to office and residential”specifies Jonathan Donio, deputy general manager of Eternam.
Well known to institutional investors, hotel real estate is, less well known, also accessible to individuals. It is nevertheless important to spot the rare entrance doors.
Three specialized SCPIs
First there is real estate crowdfunding. Files concerning hotel acquisitions occasionally appear on the market. Here, the risk is high because performance is based on the success of a single operation. Recently operational, the Wally platform, which aims to democratize hotel investment, offers entry tickets starting from 10 euros. “The first financed purchase concerned an operating hotel in Toulouse. The annual return is expected to be between 10% and 13%, it will be distributed quarterly to investors. Other files are being studied in Lille, Lourdes and Marseille”indicates Nathan Zappelli, president and co-founder of this site.
Another narrow access route 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 2022 yields are 5.05%, 5% and 5.31%, above the sector average, which stands at 4.53%, according to the French Association of Real Estate Investment Companies. “We are investing in France and Northern Europe in two to four-star hotels and in booming outdoor hotels. Rents appreciate because they are indexed to inflation. In 2024, the turnover of our addresses should increase further »indicates Pascal Savary, president of the management company Atream.
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