Covivio Hotels Reports Sustained Growth in First Quarter of 2024

Covivio Hotels announced continued revenue growth in the first quarter of 2024, as detailed in their recent press release. During this period, revenue per available room (RevPAR) increased significantly across several European markets, highlighting a robust recovery post-2023. Key growth was noted in Spain with a 15% increase and Italy with a 7% rise in RevPAR. Germany also reported a 6% increase, primarily driven by higher occupancy rates.

The overall hotel revenues of Covivio Hotels have seen a like-for-like increase of 4.6%, reaching €64.4 million in group share revenue. Notably, variable revenues, forming 43% of the portfolio, grew by 2.8% on a like-for-like basis. Fixed rent revenues saw a 5.3% growth, influenced by indexation and positive asset management activities, including lease renegotiations in Spain.

Looking forward, the outlook for 2024 remains positive with expectations of continued demand, catalyzed by significant events such as the Olympic and Paralympic Games in France and the European Football Championship in Germany. Moreover, Covivio Hotels is progressing in its negotiations with AccorInvest regarding a major transaction set to potentially conclude in the second half of 2024.

Additionally, Covivio Hotels' financial robustness has been reaffirmed by S&P Global Ratings, maintaining a stable outlook rating at BBB+, and upgrading the stand-alone rating from BB+ to BBB-.