Covivio has published its first half-year results for 2023. The group posted a solid operating performance for the first six months of the year.

Covivio's share of revenues came to €321 million, up 5% on a reported basis and 7.6% on a like-for-like basis.

In terms of hotels, the group grew by 20% on a like-for-like basis, with 42% growth in variable revenues and 10% in fixed rents.

This strong performance was driven by increases in average prices and the return, since last May, to occupancy rates close to or above 2019 levels.

RevPAR grew by an average of 12.7% in Europe, and EBITDA from owned hotels rose by 54% over the period.

Following the publication of its results, the group has reviewed its outlook for 2023. Its adjusted EPRA Earnings target for 2023 has been increased by €10 million to around €420 million (compared with an initial guidance of €410 million).

In a real estate environment impacted by rising interest rates and a slowing investment market, Covivio is adapting rapidly. The €350m in new disposal agreements and the payment of the dividend in shares have strengthened our balance sheet. At the same time, strong revenue growth of 7.6% on a like-for-like basis means that we can raise our guidance for 2023 recurring net income.

Christophe Kullmann, Managing Director of Covivio