With the upgrading of assets, new partnerships and new destinations, the French real estate company was very active in 2018.
During an interview (French only) with Hospitality ON, Dominique Ozanne indicated that the real estate group is developing many projects within a strategy to upgrade its assets. Results for 2018 speak for themselves:
- Birth of the brand Covivio before summer, demonstrating a desire to improve the range internationally.
- Development of the collaboration with NH Hotel Group through the takeover of NH properties in Berlin, Hamburg and Amsterdam (for a 98 M€ portfolio). 2019 should have surprises in store in this regard further to the takeover of NH Hotel Group by Minor Hotels(French only).
- A search for partners that have strong added value to maximize revenues such as Motel ONE (French only) et Room Mate. Notice to hotel operators seeking new investors...
- Refocusing on upscale assets with the sale of 59 B&B htoel assets in different regions and the Greater Paris Region and on hotel activity that is among the best performing companies for longterm investors as Vanguélis Panayotis, CEO MKG Consulting, remarked at TourInvest Forum 2018.
These actions bore their fruit since the results for 2018 highlight growth in values by +3.0% with a constant perimeter. Spain and Belgium are the two destinations showing the most growth. Rents for hotel assets are also up by +4.2% with a constant perimeter. This good health is thanks to Paris and Brussels which saw their rents increase by 10% for properties under AccorHotels Group brands. Globally, the good health of European destinations benefits Covivio which has led a parallel strategy to diversify its financial sources to reach a BBB rating by Standard & Poors. Teh sale of non-strategic assets also makes it possible to free up cash for new investments.
Covivio claims it wishes to consolidate its stratégie and its positions in 2019.
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