Brainsre compiles below the weekly news highlights.
- Accor plans to open over 1,200 hotels in the next five years, expanding its hotel portfolio by more than a fifth.
- The hotel industry has benefited from price increases and a rebound in travel demand post-Covid-19, despite concerns about recession, rising interest rates, and inflation affecting household purchasing power.
- Accor has raised its 2023 outlook, expecting a 15% to 20% increase in revenue per available room (RevPAR) compared to 2022 and an ebitda between €920 million and €960 million for the year. It also anticipates annualized ebitda growth of 9% to 12% between 2023 and 2027 and plans to return €3 billion to shareholders through dividends and share buybacks.
Residential – Building permits continue to plummet
- Housing construction permits continued to decline in May, with 418,800 permits issued over a 12-month period, a 9% decrease compared to the previous month and an 18% decrease compared to the previous 12 months.
- The decline is largely attributed to a calendar effect in 2022, where permits reached record levels between January and August before declining. This was due to the validation of many applications submitted in late 2021, just before the implementation of RE2020, and a surge in permits issued in August to benefit from construction stimulus aid.
- The number of permits issued has stabilized at slightly over 30,000 per month, which is about 20% lower than pre-pandemic levels (around 40,000). The decline in permits affects detached houses (-34% over 12 months), subdivisions (-23%), and buildings (-10%), while only residential complexes show a slight increase (+4%).
- The SCI Territoires Avenir, created by Arkéa REIM, invests in multi-sector and primarily regional real estate assets in France, with potential diversification into European regions. The focus is on properties that contribute to the local community, such as schools, senior residences, offices, and healthcare facilities.
- As of April, the portfolio allocation of Territoires Avenir was predominantly weighted towards the logistics sector (55%), followed by office assets (23%), commercial properties (11%), educational real estate (6%), and hospitality (5%).
- In its 20th acquisition, Territoires Avenir purchased a portfolio of four new logistics assets from 6ème Sens Immobilier, located in Ludres, Saint-Ségal, La Vergne, and Appoigny, France. The properties, totaling 16,783 square meters, are fully leased to Kuehne + Nagel and contribute to the fund’s objective of supporting economic and environmental transitions in strategic activity zones near urban centers.
Student residence – Greystar deploys its pan-European residential strategy in Ivry-sur-Seine
- Greystar has acquired a 310-bed student residence in Ivry-sur-Seine, France, marking its first entry into the French market and aligning with its pan-European residential strategy.
- The residence will cover 8,300 square meters over 18 floors with 550 square meters of common areas. It will be located near a future engineering school to be delivered by Hibana in 2025.
- The investment decision was supported by the building’s proximity to Paris, the urban redevelopment project, and the vibrant city of Ivry-sur-Seine. Greystar currently manages over 4,400 beds in major French student cities and has over €10.7 billion in assets under management across Europe, with a focus on student, young professional, and multifamily housing.