Jean-Marc Palhon, Chairman of EXTENDAM, explained: “The market is lacking rooms to meet demand. Occupancy rates and prices are nowadays very high across Europe. Trends will probably change during the next 12 to 18 months. If interest rates continue to decline, many investors will be less concerned and will have easier access to credit, which will boost asset values“.

To optimize opportunities in this market, real estate private equity funds remain a preferred option. By investing in both property and business assets, these funds offer a dual source of income: regular rental payments and potential capital gains from the business. Expected returns can reach double-digit levels, though they vary depending on the strategies employed.

Read Aurélie Fardeau’s full analysis on the attractiveness of hotel investment in the magazine Option Finance