France remains the world's leading tourist destination

According to the Paris Convention and Visitors Bureau, Paris is ahead of the United States and Spain, despite the security situation. Paris is also Europe’s largest convention centre. As a result, the entire region’s dynamism and appeal contribute to France’s international reputation and image, which in turn benefits the hotel industry. With a total of between 82.5 and 83 million foreign tourists visiting France in 2016*, the trend is for hotel establishments to move upmarket in order to accommodate this business and tourist clientele with high purchasing power. These good results were achieved thanks in particular to the return of long-haul customers from the United States, Japan, China and Russia (*sources: CRT Paris IDF Q1 2017).

The French hotel market therefore remains buoyant, with Parisian hotel occupancy rates – close to 80% – the best in Europe after London. In 2017, all categories of hotel have been affected by this upturn in activity. These trends should also be confirmed thanks to the dynamism of Greater Paris and the events market, with the Rugby World Cup in 2023 and the Olympic Games in 2024.

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As a reliable investment, the hotel sector offers high returns

predictable and sustainable, particularly in the Paris and Ile-de-France regions. Yield prospects can be high, ranging from 4% to 10% net per annum, excluding tax, over the medium to long term, depending on the scheme, provided the property is well located and operated. The hotel market has high intrinsic value and low volatility. Hotels are therefore an alternative to investing in the more traditional residential and commercial property markets. It is attractive on two levels: firstly, by increasing the value of the property asset (construction, renovation, restructuring) and secondly, by creating goodwill through the operation of the new property.

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Suitcase Hospitality's development strategy

Suitcase Hospitality is fully in line with this vision of the market and goes even further, as it operates in the hotel market with a global, tailor-made approach. On the one hand, Suitcase Hospitality limits itself, each year, to a rigorous selection of hotel projects only on privileged locations with high potential, and on the other hand, Suitcase Hospitality develops its hotel projects in their entirety. Finally, the fact of integrating the entire hotel value chain, i.e. from project development to day-to-day management, represents a considerable advantage, as it optimises hotel design and minimises design and management costs, since there are fewer entities to pay.

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