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In November 2024, Gilles Clavié, CEO of Essendi, spoke for the first time in front of his peers to share the work accomplished and the vision of Europe’s leading real estate company. After many months of work by the entire group…
‘We undertook a very meticulous review, hotel by hotel, cost line by cost line, questioning everything in relation to our real needs. […] 25,000 employees worked on this transformation for four years.’…
… The results were positive:
“In terms of performance, Essendi saw exceptional subscription to its bond issues in 2023, validating the credibility of the model and strategy. The results for 2024 show a 4% increase in turnover and an 8% increase in EBITDA, with an operating margin exceeding that of 2019.
The asset management strategy has enabled the company to reduce its debt and divest non-strategic assets, while maintaining a portfolio aligned with the group’s objectives. Investments continue, with an annual budget of €200 to €250 million for renovation and development.”
With the foundations now in place, what are the next steps to continue to extract value from the group’s 559 assets? Join us on 25 November to discuss this with Gilles Clavié.
Covivio Hotels is no slouch when it comes to transformation. Founded as a property company in 2004, a couple of decades later the WiZiU structure was launched to strengthen the operational side under the leadership of Sébastien de Courtivron:
‘Our profile continues to evolve towards a more operational one, with nearly 38% of our hotel portfolio held in business and premises at the end of the year. This change of scale is significant and has a definite impact on the development of our hotel management platform acquired in 2016.’
A key objective with this platform: “With WiZiU, our goal is to continuously improve the profitability of our assets and thus create lasting value. For repositioning projects, we are aiming for performance increases of at least 30%. Of course, each hotel will have different strategic challenges, so we will adapt on a case-by-case basis. “
Another lever for value creation is the relationship with the franchisor.
“With hotel leases, we had relatively simple and predictable management, with very long-term contracts. By entering into relationships with operators such as Accor and B&B HOTELS, we immediately benefit from a solid pipeline and good visibility on development. We are now trying to integrate a variable component to align performance with that of the operator.”
“When it comes to CAPEX, it’s a question of balancing risk and return. Sometimes we even take over operations to capture the operator’s profits. The hotel sector is evolving, and so are we. We are therefore moving beyond directly owning hotels in their entirety, i.e. both the Opco and the Propco.” Tugdual Millet shared this at MIPIM 2025.
These are just some of the ways to remain competitive at a time when average daily rates are slowing down in mature European markets. Join us on 25 November 2025 to discuss value creation levers for hotel owners and operators.
To attend the event, join the community by subscribing today HERE
