Major events: the myth of a positive impact?

MKG Insight – The impact of the Paris 2024 Olympic and Paralympic Games on investments – Sylvie Bergeret, Director of Research, MKG Consulting

"In Paris, when the Olympics arrived, we were not at all in the same dynamic as London: the hotel stock remained completely stable. Although there were some notable openings, several factors contributed to a reduction in supply. For example, some 3-star hotels were upgraded to 4-star, while part of the economy segment transitioned to the social housing sector."

ICCA & Viparis – Marta Gomes, President of ICCA and Deputy Director of the Commercial Division at Viparis

"Paris holds this predominant position due to its role as a leading city, both attractive to visitors and strategic for business. With one of the strongest economies in Europe, Paris hosts more than 300 trade shows, 700 congresses, and over 10,000 corporate events annually. The capital brings together all the criteria sought by event organizers: exceptional accessibility, modern infrastructure, and an international dynamic."

The new investment paradigm: Investor and operator

MKG Insight – Adrien Lanotte, Senior Analyst, MKG Consulting

"In France, the year was salvaged by the Olympic Games, which helped stimulate economic and tourism activity. Across Europe, Southern European countries are performing the best. We’ve also seen one-off events act as catalysts, such as Taylor Swift’s tour in Munich, which boosted local performance.

From an investor’s perspective, our industry tells a story of strength and growth, and this equity story draws their attention. The market is based on strong fundamentals, with a slight premium on expertise, creating real opportunities for value creation.

In Southern Europe, although volume gains remain modest, some countries stand out as growth champions: Poland, Croatia, and Denmark. Between 2019 and 2024, these markets recorded an increase of 5,000 branded hotel rooms.

Investors are increasingly reflecting on the diversification of destination types, which indicates a maturing and more sophisticated market."

Keynote AccorInvest – Gilles Clavie, CEO of AccorInvest

"Faced with a succession of crises, it is imperative to have a strong model and solid profile. At AccorInvest, we have structured a model offering better control over value creation. To strengthen our profile, we refocused on Europe, where we operate in the economy and midscale segments, which I believe are the most resilient.

At present, we continue to invest heavily, between €200 and €250 million annually, while conducting strategic asset sales and exchanges, such as with Covivio."

What are Europe's major institutional investors thinking, doing, and planning?

• Gilles Clavie, CEO d’AccorInvest
• Jean-Marc Palhon, Président, Extendam
• Pascal Savary, Président, Atream
• Eric Bismuth, President, Montefiore Investment

Jean-Marc Palhon, President, Extendam

"At Extendam, when we talk about hotel acquisitions, it’s first and foremost a profession. We have a pan-European strategy, acquiring two hotels per month, and over the past 12 months, we have completed more acquisitions outside France than within.

We work on both the property and operations, as value creation comes from operations. Owning the property is also very important to us. We favor existing assets, particularly small hotels that do not rely on a specific typology. Our goal is a good mix of leisure and business, which requires high-quality locations such as major urban areas.

Some investors hesitate because they don’t always grasp the specifics of the hotelier’s profession, which differs from that of real estate. It is therefore essential to give them time to acquire these skills. While many are interested in the sector, there are still few new entrants."

Pascal Savary, President, Atream

"Our sector allows people without initial qualifications to have extraordinary career paths. We are fortunate to operate in a diverse country with natural assets such as mountains and coastlines. We need to rekindle young talent’s desire to join the sector with an entrepreneurial spirit."

Eric Bismuth, President, Montefiore Investment

"ESG is a given for us and an integral part of our strategy. In the future, it will become less of a differentiator as everyone is progressing in this area. We also place a strong emphasis on the social aspect, making our companies attractive to employees and allocating part of our funds to youth training.

In France, we have modernized hospitality with higher prices than in other European countries. By combining elements of resilience, we can defy economic cycles in the long term."

Operators adapting to the new deal – Philippe Bijaoui, Chief Development Officer Europe North Africa, Accor and Willemijn Geels, Vice President Development Europe, IHG Hotels & Resorts

Philippe Bijaoui, Chief Development Officer Europe North Africa, Accor

"Over the past ten years, we’ve reflected on what today’s customers demand and the relevance of our brands to investors. Acquiring new brands has allowed us to optimize standards and available spaces in our hotels, regardless of their type.

We are proud of the new brands we’ve launched, such as Tribe and Handwritten, as well as collection brands that allow hotels to maintain their identity. With 3,000 hotels in Europe and a commitment to 99% plastic-free operations, we continue to move in a sustainable direction.

Technology and distribution channels are also essential levers. Although they are costly, artificial intelligence helps us offset these costs and improve overall performance."

Willemijn Geels, Vice President Development Europe, IHG Hotels & Resorts

"We are seeing encouraging ROI, particularly through energy cost reductions. There is now a genuine willingness to invest in these improvements, which we didn’t see before.

Our core business remains customer service, and we see a direct correlation between guest satisfaction and RGI. The investments we make in this area are measurable and impactful."

Use case in hospitality investment – Eric Omgba, Founding Partner, Alboran Hospitality and Valérie Schuermans, Vice President Business Development, Radisson Hotel Group

Eric Omgba, Founding Partner, Alboran Hospitality

"We are a young company, only 9 years old, operating as owner-operators. Today, we manage 18 hotels with the support of five strategic partners.

The brand First Name, set to launch in winter 2023, embodies our core business: selling experiences and creating memories. The choice to collaborate with Hyatt was natural to address the needs of the luxury and premium segments.

Our partnership with Radisson Hotels Group reflects our philosophy of adapting to each destination’s specifics. For example, in Reims, where the mix is 50% leisure and business, the Radisson brand allowed us to capture relevant market shares while optimizing RevPAR and distribution costs. Strategically, Reims is a logical extension of Greater Paris. The hotel there was designed innovatively, incorporating coliving spaces and dedicated F&B areas."

Incrementality – Vanessa Heydorff, Managing Director France, Booking.com

Vanessa Heydorff, Managing Director France, Booking.com

"Today, 50% of travelers on Booking.com are international clients, and they tend to stay longer in hotels than domestic clients. In France, we are seeing strong growth in international clientele, particularly towards the end of this year, a trend expected to continue next year.

Our connected travel strategy, developed over the past 4-5 years, allows clients to book their entire journey from home to destination. For example, we have launched flight offerings in 56 countries, recently including Singapore. These offerings help attract new customers, such as American travelers, who are then likely to book accommodations on our platform."

Vision & Ambitions for IHCL – Puneet Chhatwal, Managing Director & Chief Executive Officer, The Indian Hotels Company Limited

"The Indian Hotels Company Limited (IHCL) is proud to be the largest hospitality group in India. Our flagship brand, Taj, is the strongest across all segments, and its success is a testament to our commitment to excellence.

Since 2017, we have been focused on growing and developing destinations, and Taj has been at the heart of this transformation. Our brands are constantly evolving to meet the changing demands of today’s customers while staying true to their essence.

Despite our growth ambitions, we remain firmly committed to being India-centric, ensuring that our roots and values guide every decision we make.

At IHCL, we are also strong advocates of Environmental, Social, and Governance (ESG) principles, which are deeply integrated into our operations and long-term strategy. These values underline our dedication to sustainability and responsible business practices."