Long famed for its ski resorts, mountain towns in the French Alps have recently seen an uplift in investor interest.
The
Due to the warming climate, and limited new supply of ski resorts, more snow-sure locations at higher altitudes are commanding premium values, says
In fact, 80% of 2023 transactions in the Alps were located at, or above, 1800 meters. Prime resorts generated significant investor interest, with
Institutional investors have been the most active participants, accounting for almost 60% of total deal volumes, including the acquisition of
Subit says that it's also been an unrivalled period for portfolio transactions, largely driven by the acquisition of brands like Lodge and
Targeting those with a taste for luxury
Surging investment demand is transforming the Alps hotel industry, especially when it comes to luxury. A deliberate shift in focus has seen room availability at the lower end of the scale decrease, while L'Agence Savoie Mont Blanc reported 4 and 5-star rooms increased by 4.4% over the same period.
Room nights in the top market segments have also risen, with 4-star and 5-star overnight stays up more than 17% between 2019 and 2023, according to INSEE, the national statistics bureau of
It's being driven by several high-end hotel projects, including
Meanwhile, the redevelopment of existing accommodations into sumptuous private chalets, such as La Soliere, Iconic House and Ultima, further reinforces the growth of lavish accommodation in the region.
As a result, hotels in the French Alps are now typically achieving annual turnover similar to their Parisian counterparts, with establishments in the Northern Alps alone reporting a 40% increase in RevPAR since 2019.
Food is proving to be a major draw. Alongside 20 Michelin-starred restaurants, the mountains have seen restaurant concepts arrive from
Consequently, there's been a shift in typical guest profile.
We've witnessed a significant increase of international guests drawn by the region's stunning landscape, top-notch resorts and luxurious accommodations, says Subit.
Traditionally, visitors have arrived from the
Most notably, L'Agence data shows visitors from the
Diversification to drive future growth
With climate change and hotter winter weather impacting the length of the ski season, ski resorts and hoteliers are appealing to a wider consumer base by actively promoting the mountains as a year-round destination.
Visitors looking for fresher climates who want to avoid the sometimes-stifling heat of more traditional vacation destinations, are increasingly seeing the Alps as an attractive summer option, says Subit.
Hotel websites are emphasizing healthy warm weather pursuits such as yoga, hiking, watersports and cycling. Some ski lifts are open, and free, for hikers returning to towns on the valley floor. There are even new sports complexes popping up, such as Aqualudique Paradisio in La Plagne and Aquamotion in Courchevel, offering everything from waterslides, indoor surfing and spa treatments, to climbing walls.
It's starting to pay dividends, with L'Agence Savoie Mont Blanc confirming a substantial average annual increase of 6.5% in 4-star and 5-star room nights during the summer season.
With limited new ski resort supply, recent upscale transformation and wider diversification, the market is well-positioned for further growth, says Subit. In the coming years we expect activity in the core Alps region to remain dynamic, thanks to its enduring charm, strong fundamentals and good balance between risk and return.
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