Covivio Hotels SCA

Latest Results (20.08.2024):

Revenue Growth

Covivio Hotels SCA reported a revenue of €500 million for the first half of 2024, with €327 million attributed to the Group share. This represents a 1.8% increase in Group share revenue compared to the same period in 2023, which stood at €321.2 million. The growth was driven by a 6.5% like-for-like increase, bolstered by strong performance in the hotel sector and new asset deliveries in Greater Paris and Berlin.

Occupancy Rate

Covivio Hotels SCA achieved an occupancy rate of 97.1% for its portfolio in the first half of 2024, marking a 0.4 percentage point increase from 2023. This improvement was primarily due to a rebound in office occupancy, which rose by 0.6 percentage points to 95.1%, thanks to several new lettings in Greater Paris.

Disposals

In the first half of 2024, Covivio Hotels SCA entered into new disposal agreements totaling €311 million Group share (€455 million at 100%). These disposals included €142 million in office properties and €129 million in German residential properties, with an average premium of 5.6% over 2023 book values. Additionally, hotel disposals amounted to €40 million Group share, achieving a 10.7% premium to appraised values.

Investments

Covivio Hotels SCA invested €214 million Group share (€263 million at 100%) in the first half of 2024 to enhance its portfolio. This included €110 million in development pipeline capex and €71 million in operating portfolio improvements, with a significant portion allocated to modernization projects in German residential properties.

Development Pipeline

Covivio Hotels SCA's committed office development pipeline is expected to generate €93 million in revenues, with 85% of the projects located in prime city centers such as Paris, Milan, and Berlin. The pipeline, which is 55% pre-let, includes 10 buildings with a total budget of €584 million, and is set to deliver two projects in Milan by the end of 2024, with additional projects scheduled for completion between 2025 and 2027.