Brainsre compiles below the weekly news highlights.
Hotel – Despite the turmoil, the hotel industry has the wind in its sails
- French hotels have experienced a strong recovery in the aftermath of the Covid-19 pandemic, benefiting from government support and a desire for travel among the French population. The rebound in hotel occupancy, average prices, and profitability has become a sustained trend, with the hotel industry flourishing.
- The resilience of the French hotel sector is attributed to the local interest in domestic tourism and the return of foreign tourists. Occupancy rates have reached pre-pandemic levels, and average prices have significantly exceeded previous levels, leading to a substantial increase in hotel profitability.
- The positive momentum in the French hotel industry is expected to continue, supported by upcoming major events such as the Rugby World Cup and the Olympic Games. Hoteliers anticipate ongoing strong operational results in the coming months and believe that the outlook for 2023 and 2024 is favorable.
Residential – The urban development plan for a “greener and more inclusive” Paris adopted
- The new urban development plan for Paris aims to create a city better adapted to climate change by 2035-2040. It includes measures to decrease impermeable surfaces, increase green spaces by 300 hectares, and protect existing trees.
- The plan emphasizes transforming existing buildings rather than extensive new construction. The goal is to reach 40% public housing, including 30% social housing and 10% affordable housing, by 2035. The city has identified new areas for social housing and plans to increase the budget for property acquisitions.
- There are debates over building density and height limitations. The plan restricts future buildings to a maximum height of 37 meters, reverting to the historical limit set in 1977. The plan also allows for some building surges in wider streets. Opinions differ on the balance between densification and preserving the city’s heritage and open spaces.
Companies – How Lapeyre discreetly outsourced its real estate operations
- Lapeyre, a French company specializing in manufacturing and selling home furnishings, has completed several asset sales in 2022, including properties valued at a total of €93 million. The largest sale involved two locations in Aubervilliers, Paris, valued at €31 million.
- The company’s strategy involves reallocating the proceeds from the sales to reinvest in the development of the brand and its production facilities. The sales primarily targeted secondary assets, while strategic locations were retained through sale and leaseback arrangements with a buyback option over ten years.
- Axis Promotion is among the buyers of Lapeyre’s properties, which were mostly oversized secondary assets. The company aims to optimize its real estate portfolio while maintaining its presence in key locations such as Bordeaux, Marseille, and Antibes.
