As part of its efforts to diversify its core and core-plus strategies, BNP Paribas Real Estate Investment Management (BNP Paribas REIM) has developed considerable expertise in the hotel sector. Although the market faces the challenge of new forms of supply such as Airbnb, hotel income returns are generally highly competitive relative to those of the mainstream core real estate sectors of offices, retail and logistics/industrial.
Structural change within the hotel industry is creating investment opportunities as chains grow increasingly reluctant to tie up capital in the buildings where they operate. Some prefer to focus on their hospitality operations and lease the buildings on a long-term basis. We can advise on which of the various leasing models best match an investor’s requirements and risk profile.
Led by France and Spain, Europe is the world’s biggest tourist destination. Budget airlines, infrastructure improvements and economic growth are boosting travel by Europeans across the continent, while international visitor numbers also continue to rise. Europe welcomes hundreds of millions of visitors every year. Spanning leisure hotels and business hotels, our expertise can identify the optimal way to invest in this fast-evolving sector and provide the capabilities to manage assets throughout the entire life cycle of an investment.
Case Studies of Our Expertise in the Hotels Sector
Local Expertise on Munich Hotel Market to Source a Portfolio of Scale
Our team in Germany identified the strong fundamentals of the Munich hotel market and sourced a three-property portfolio that was purchased by a private investor fund. Offering guests a total of 410 rooms, the three hotels are let on a new 20-year lease to AccorHotels' Ibis economy hotel brand.
Backing a New Hotel Concept in Rotterdam
Using its local expertise, our team in the Netherlands seized an investment opportunity in the growing Rotterdam hotel market, where supply was not keeping pace with rising visitor numbers. One of our institutional funds purchased a 217-key hotel project in an up-and-coming submarket. A key differentiator of the building is that it is directly linked to an indoor market, meaning it can attract visitors as well as hotel guests. Affordable luxury chain Room Mate Hotels is the hotel's operator.