Covivio report confirms hotel property performance recovery in its latest quarterly report with igood news for the hotel sector, which accounts for 15% of the company's portfolio.
The Convivio group, whose main shareholder is Leonardo Del Vecchio's Delfin, confirms the recovery from the end of the 2021 financial year. What stands out in particular is the performance of hotel properties with variable revenues which recorded a 160% increase in flexible rents in France between January and March. By contrast, the collection rate for fixed rentals stands at 100%.
New leasings for 31 hotels with 2,565 rooms
As the hotel segment experiences a rebound, Covivio is continuing its dynamic asset management strategy by leasing 31 hotel properties in France with B&B Hotels for a total of 2,565 rooms, already owned by Covivio and managed under various Accor brands like Ibis, Novotel and Mercure. With the signing of the protocol Covivio and B&B Hotels committed to new fixed-rent contracts for 12 years with Covivio benefitting from a substantial increase in rent compared to 2019.
Gross operating margins improve
In the second half of 2021 the hotel business posted +51% with gross operating margins (ebitda) under management contracts significantly improving (mainly in France and Germany, up 69% compared to the same period last year). Fixed rentals also increased by 8% following the relocation of a hotel in Madrid.
