Tourism assets are distinguished by their diversity, including various forms of accommodation: hotels, tourist residences, holiday villages, and youth hostels. An important characteristic is the need for these establishments to constantly adapt to changes in travelers' expectations, which influence valuation scenarios.
Formerly neglected and depreciated by investors due to a lack of professionalism of operators and an image that was too "popular", outdoor accommodation has undergone remarkable development. The move upmarket and the constant increase in occupancy rates have captured the attention of investors. Today, they are paying close attention to these booming assets, which are experiencing significant annual growth.
Hotels and Para-hotels...!
Tourism assets are distinguished first by their diversity, encompassing various forms of accommodation such as hotels, tourist residences, holiday villages, or youth hostels. Each of these establishments targets a specific clientele, offers particular services and is located in a specific geographical context, which makes each valuation unique.
Another important characteristic to take into account is the need for constant adaptation of these establishments to changes in travelers’ expectations, which can significantly influence valuation scenarios.
What attributes characterize the "Hotels and Para-Hotels" asset ?
Tourism assets are distinguished above all by their diversity. They come in a multitude of configurations, from independent hotels to chain-affiliated establishments, including hotel residences, boutique hotels and resorts. This diversity is also reflected in their location, whether they are major capitals, seaside destinations or mountain resorts.
A crucial aspect, shared by all tourism assets, is the need for regular updating, often referred to as « re-equipment ». Customer expectations are constantly evolving, particularly with regard to the services offered, while trends and environmental requirements are also changing.
These factors can require adaptations ranging from simple changes in decoration to a complete renovation of the spaces. Our team can act as an advisor by proposing several valuation scenarios to support this evolution.
What are investors' expectations ?
For several years, we have observed both a densification and a diversification of players interested in the hotel and para-hotel industries. Private investors see this type of asset as an interesting diversification opportunity. Tourism assets offer a certain number of advantages compared to other types of tertiary real estate assets:
• Holding structure generally involving a single tenant or operator,
• Sustainability of cash flows,
• Minimal vacancy,
• Favorable taxation,
• Creation of capital gains through transformation or renovation,
• An interesting risk/return ratio.
What are the main evaluation criteria for "Hôtellerie et Para-Hôtellerie" ?
In the hotel industry, as in other sectors, location remains a fundamental criterion for evaluation. Other elements are also crucial, such as the services offered, the ownership structure, operational performance and the market context.
• Location: Urban destination, seaside resort, tourist destination, winter sports resort.
• Hotel characteristics: Number of rooms, services and ancillary services, quality of layout, compliance with standards (ERP, PMR, environment, etc.), accessibility.
• Holding structure: Lease, management mandate, franchise agreement, lease management, quality of the brand, quality of the operator.
• Operational performance: Key performance indicators (occupancy rate, average price, RevPAR), cost structure, management fees, franchise fees, profitability, effort rate.
• Market context: Tourist demand, conference and event infrastructure, urban development, hotel and para-hotel supply, competition. To assess the value of a hotel property, our team uses methods such as income capitalization and discounted cash flows.
It is also able to assess both the walls and the business assets in the context of acquisition, development, financing or regulatory purposes. In addition, it intervenes on feasibility studies and critical analyses of Business Plans.
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