The hotel industry — A sector in transition

The hotel real estate market is undergoing a period of significant change, driven by several major global trends:

The hotel industry is facing several challenges that are having a direct impact on the hotel real estate market.

1.Rising costs and margins under pressure

Costs, particularly labour and energy costs, have risen significantly — by between 15% and 18% — putting pressure on operators’ profit margins. Although demand is strong, these additional costs could impact profitability in the short term.

2.High interest rates and difficult financing

The hotel market is in a challenging position due to high interest rates, which make financing new projects difficult. Ongoing inflation is also weighing on the entire sector, leading to a reduction in real estate transactions, with purchases and sales reaching historic lows.

3.Fluctuating demand: Business and tourism

Demand for business travel is rebounding strongly and exceeding initial forecasts, as is demand for seminars and small conferences. However, economic fluctuations are making long-term planning more uncertain. To avoid risks, operators must adjust their strategies in line with economic forecasts.

Despite facing economic challenges, the hotel sector remains a profitable investment opportunity. Investors are considering several options:

The hotel industry is in a transitional phase, with sustainability, technological innovation, and the evolving expectations of travelers coming together. In this context, investors and operators must rethink their strategies if they are to remain competitive and profitable. Focusing on renovation, management optimisation, and integrating environmentally friendly solutions enables businesses to capitalise on current trends while mitigating the risks associated with an unstable market.

We provide in-depth expertise to assist hotel professionals with their real estate projects. Our services include:

• Hotel management: we anticipate regulatory, tax, legal and accounting constraints and implement operational solutions quickly from Paris or Strasbourg.
• Hotel due diligence: Drawing on our sector knowledge, we help you identify profitable investment opportunities and support you in acquisitions (buyer due diligence).
• We also outsource your accounting and legal resources. We set up accounting production for our clients based on industry indicators, using your accounting or hotel operating systems. We also provide ad hoc legal resources specialised in your sector of activity.
• Outsourcing of human resources administration and payroll: We take care of all administrative management of your staff contracts and remuneration, including standard employee management, automated onboarding and contract signing in our HR tool.

Find out more about our support services in the real estate sector.