H&B CUSHMAN 11 en-uk-8.1

2 022 saw a strong level of hotel investment in France at €2.6bn, catching up from the previous, quieter years during Covid. De spite a beginning of the year still impacted by Covid-19, 2022 trading results exceeded 2019 levels even in the absence of the MICE segment and Asian tourists. As a consequence, in 2023 the hotel mar ket is now witnessing a strong dichotomy between the operational market and hotel values neither declining nor increasing, whereas the hotel investment market is much more cautious due to a number of factors such as inflation, energy costs, staffing costs, interest rates and debt availability. The outlook for France is highly positive with the Rugby World Cup in 2023 and the Olympic Games in 2024. Although a lot of capital remains to be invested in hospitality assets, investors are seeking greater visi bility with respect to the levels at which interest rates and inflation will stabilize. Hopefully this will appear in 2023 and investors will adapt to a new investment environment, enabling transaction activity to resume. This should at least be the case for existing assets, whereas forward fundings with 24-month delivery horizons remain more challenging.

France Katell Bourgeois International Partner Head of Hospitality France

France

HOTEL TRANSACTION ACTIVITY IN 2022

9,612 ROOMS SOLD

€2.6 BILLION TRANSACTED

111 PROPERTIES SOLD

AVERAGE PRICE PER PROPERTY €24M

AVERAGE PRICE PER ROOM €273K

Note: the data are updated as in April 2023, and may differ from previous publications

8