The true property providers agency’s annual lodge operator survey noticed worldwide and regional lodge operators – all of that are energetic in France – give their views on sector alternatives and challenges out there.
The outcomes reveal the next key tendencies:
- Resorts and luxurious motels have a really constructive efficiency outlook, in keeping with 73% and 61% of the surveyed operators. Nonetheless, majority of respondents are additionally optimistic or very optimistic concerning the future efficiency of different lodge lessons and kinds.
- 30% of pipeline tasks are reported to be delayed or on maintain, primarily as a result of rising improvement prices and points with debt funding.
- 71% of surveyed operators would take into account paying larger lease for motels with the very best ESG certifications.
The French lodge market has largely recovered from the impression of the COVID-19 pandemic, principally pushed by sturdy ADR progress. After two years of unprecedented slowdown, lodge efficiency lastly returned to pre-crisis ranges in 2022, pushed by the gradual return of home and worldwide demand. With such persevering with progress in efficiency, operators are as soon as once more eager to develop their portfolios and our survey reveals that the efficiency outlook is anticipated to be very sturdy over the subsequent 12 months, particularly for Luxurious & Higher Upscale motels.
Unsurprisingly, Paris continues to be essentially the most engaging market, with the overwhelming majority of operators expressing a really excessive curiosity in increasing within the French capital. Lyon, Bordeaux, Good and the Ile-de-France area have gained curiosity in comparison with our 2021 survey, not solely due to their sturdy efficiency however equally as a result of these markets signify ‘need-to-be’ areas for any operator that desires to construct a robust presence in France.
Nonetheless, the lodge pipeline is being dampened, with 30% of recent tasks being reported both delayed or on maintain, primarily as a result of rising building value and continued uncertainty within the debt markets.
Our newest examine highlights that operators are very optimistic concerning the efficiency of resorts and that ESG issues are beginning to be mirrored within the contract phrases together with most well-liked business phrases for property with the very best sustainability credentials.
By way of efficiency danger, the operators confirmed the rising pattern of hybrid leases or the inclusion of working ensures within the case of administration contracts. Different tendencies embody rising key cash provisions and suppleness in contract termination.
In abstract, the French hospitality market is presently experiencing a affluent period, which has resulted within the introduction of extra various manufacturers and ideas. Due to very stable market fundamentals and the group of main occasions such because the Rugby World Cup 2023 and the Olympic Video games 2024, the subsequent few years are anticipated to strengthen the total restoration in lodge exercise resulting in a beneficial outlook for operators.
As soon as once more, we wish to thank all of the operators who’ve participated on this survey.
The survey was carried out by Cushman & Wakefield in H1 2023, and accomplished by 21 senior executives representing lodge operators with current presence in France or curiosity to enter the area. The respondents are chargeable for greater than 3,500 motels with over 283,000 rooms already working in France, with a collective pipeline of 300 proposed motels comprising over 36,000 rooms.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a number one world actual property providers agency that delivers distinctive worth for actual property occupiers and house owners. Cushman & Wakefield is among the many largest actual property providers companies with roughly 50,000 workers in over 400 places of work and roughly 60 international locations. In 2021, the agency had income of $9.4 billion throughout core providers of property, amenities and undertaking administration, leasing, capital markets, and valuation and different providers.
To study extra, go to www.cushmanwakefield.com or observe @CushWake on Twitter.
Katell Bourgeois
Head of Hospitality France
+33 672 594 171
Cushman & Wakefield
