French real estate investment trust Covivio said it had seen a recovery in the performance of its hotel portfolio over the summer.
In a third quarter trading update, the company said European revenue per available room, or RevPAR, a key hotel industry metric, rose by an average 67% in July and August year-on-year, putting it 38% below 2019 levels.
The best performance came in countries with more domestic and leisure customers with performances at least matching 2019 for hotels in seaside locations.
Third quarter revenue rose 42% year-on-year and rent collection was 93% at end-September (79% including rent relief and deferred payments).
“Covivio’s hotel portfolio is well positioned to benefit from the recovery: variable revenues, concentrated in France and Germany, as well as revenues from the UK portfolio, are generated mainly by domestic and regional customers travelling individually for leisure,” the company said.
In 2020 hotel revenue fell by €70 million, which Covivio said “should translate into equivalent upside over the next few years.”