Amount invested in million euros
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Tourist residences were created in the 1970s with the development of winter sports resorts. This type of building, (which could be built quickly) made it possible to accommodate a massive influx of tourists and thus make the cost of infrastructure profitable. The trend spread to the seaside resorts and resorts in major cities. Multiple tax measures have contributed to their development, including in rural areas. However, they are more affected by economic context than student residences or homes for the elderly. Since 2017, they no longer benefit from the Censi-Bouvard law and their occupancy rate averages only 70% over the year. They generally offer a guaranteed return on investment for 9 years at the time of their inauguration.
Owned mainly by private individuals, the tourist residences of today interest more and more investors within the framework of diversification strategies.
Amount invested in million euros
Evolution of the amount invested compared to 2020
RevPAR (Revenue Per Available Room)
Tourist residences provide holidaymakers with fully equipped accommodations where they can live independently. These assets differ from vacation rentals because they feature a group of apartments managed by a single operator that pools the premises for collective use. In addition, this asset benefits from tax incentives, including the recovery of VAT and a 20% allowance on the amount of renovation expenditure (under certain conditions). Since 2017, tourism service residences no longer benefit from the tax advantages of the Censi-Bouvard law.
The rates of return on this asset are positioned in the high range but are strongly contested by student residences and homes for the elderly, which have retained the tax advantage of the Censi-Bouvard law and are also less affected by a variable economic context.
The average occupancy rate is similarly lower than in other service residences: about 65% in seaside and winter sports resorts (over 5 to 6 months of the year) and 70% in the countryside and in town. However, there is a tendency for operators to favour weekly or monthly stays in order to optimise occupancy rates and rationalise operating costs.
For the valuation of tourist residences in the state of future completion, our experts use the usual methods of income capitalisation and direct comparison in the residential services and housing markets. In the event that the investment concerns an asset that has already been built, the information resulting from the review of the operator's balance sheets is also used.
As with any real estate asset that is growing and whose acquisition is encouraged by tax measures, the location of the tourist residence is an important point of review for our experts. They are also attentive to the existence of a current or future competing offer in the neighbourhood, the quality of the operator and the classification of the residence. These factors are rated every 5 years by Atout France based on 175 criteria to assess the level of services and equipment, accessibility and compliance with standards related to sustainable development.
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