Investing in hotels: how to assess a hotel’s real profitability?

Why do prestige hotels attract wealth investors?

 

High-end hotel real estate offers a rare combination: solid returns, capital appreciation and exposure to a demanding international clientele. With inflation and unstable financial markets, buying a luxury hotel becomes a strategy that is both defensive and ambitious.

 

 

1. A resilient, high-demand French market

 

France remains the world’s leading tourist destination, with a hotel occupancy rate above 75% in prime areas (Paris, French Riviera, Alsace…). Luxury hotels weather crises better, supported by a loyal clientele with strong purchasing power.

 

 

2. Which types of hotels do investors target?

 

• 3/4-star business hotels: easy to operate, in dynamic urban areas.
• Boutique hotels: value can be enhanced through the guest experience.
• Chain hotels under management contracts: revenue secured by a long-term lease.

 

The right choice depends on your profile: operator, passive investor or family group.

 

 

3. Opportunities linked to standards, successions and generational change

 

Upgrading to standards, digitalisation and retirements create many opportunities to acquire under-performing or undervalued assets. With expert support, a strategic repositioning can generate a quick capital gain.

 

 

4. Profitability: what really matters

 

Beyond the purchase price, a savvy investor analyses:

• RevPAR (revenue per available room),
• the ability to improve the occupancy rate,
• operating costs that can be optimised,
• the potential to move upmarket (star rating, services, experience…).

 

 

5. RR Hôtels & Finance support

 

Our firm assists you with:

• the selection of truly strategic opportunities,
• the negotiation of the purchase price and lease terms,
• the financial analysis of the hotel project (projections, IRR, financing plan),
• introductions to recognised operators or managers.

 

 

Investing in a hotel, yes.
But with the right support.

 

A hotel is not a standard rental property. It is a business. A strategy. A living asset.

RR Hôtels & Finance helps you turn this acquisition into long-term success. Contact us.