Interview Synopsis

AccorInvest – global hotel real estate assets

  • Multi Asset
  • Consumer
  • Europe

AccorInvest is an owner and operator of a property portfolio of 850 hotels across Europe, Latin America and Asia. Third Bridge Forum interviewed a former C-level executive at AccorHotels France to discuss industry dynamics and prevailing economics across AccorInvest’s portfolio, as well as potential portfolio divestment and valuation trends, among other topics.

The discussion started with an overview of the trends and developments that are likely to prevail in the global hotel market this year. “The expectation is that maybe the recovery will come in 2022, and 2021 should be maybe also a difficult year,” the expert said.

With COVID-19 forcing new ways to work and socialise, some of these impacts could be permanent, or at least long lasting. “Even if everybody wants to travel, wants to visit other countries, wants to move, it’s possible that some part of the business will be different in the future than it was before the crisis,” they added.

The specialist also examined the likely recovery rates of hotels across the economy, midscale and luxury markets, and confirmed the company’s ratio of owned versus leased assets. 

Another question was whether AccorInvest might struggle to make rental payments to the owners of its leased assets, given the current climate. “When you look at P&L in the hotel industry, to pay the rent and be at least break-even after the rent is paid, you need… around 50% occupancy, sometimes even more than that. I think, yes, for AccorInvest, this is a difficult situation, regarding the pandemic.”

The Interview also considered whether hotel owners and brands are repositioning themselves, given business traveller volumes could be significantly or even permanently impaired versus 2019. “When you look at the new brands coming on the market, they are more dedicated to… the idea of lifestyle.”

To access all the human insights in Third Bridge Forum’s AccorInvest – global hotel real estate assets Interview, click here to view the full transcript.

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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