Investing in 2025: How do you choose a profitable investment?
The hotel industry, a secure investment sector
Reading Time: 5 Minutes
Key Takeaways
Quick Facts About the Article
is THE AVERAGE PRICE OF A HOTEL ROOM in France
more bookings for the 2024 games
RATE OF HOTEL OCCUPANCY in 2024
In Brief
In This Article
Making a profitable investment is a priority for investors, whether they are private individuals, professionals in the hotel sector or asset managers. However, profitability cannot be decreed: it is built through strategic choices and optimised management.
✔️ How can you identify a hotel project with high profitability potential?
✔️ What criteria should be analysed and strategies adopted to minimise risk and maximise returns?
In this article, we take you step-by-step through how to spot the best hotel investment opportunities and take advantage of a fast-changing sector.
How do you assess a profitable investment?
Market research in the hotel sector
Making a profitable investment in the hotel industry relies on several key criteria. To optimise your returns, it is essential to understand the fundamental factors that determine the success of a hotel project.
Strategic location: The location of a hotel is one of the most important criteria. According to a study by Amadeus published in April 2024, bookings for the Olympic Games period reached or exceeded 50%, which is twice as high as in previous years during the same period. Paris was particularly favoured, with bookings up by 130% for the week of 21 July 2024 compared to 2023.
Hotel type: There are different categories of hotels, ranging from budget properties to luxury establishments. In France, 3- and 4-star hotels account for more than 60% of the hotel market, with average occupancy rates of 65% to 80% depending on the region. Boutique hotels or aparthotels, for example, attract a loyal clientele seeking unique experiences, thus offering high profitability potential.
Efficient management: The profitability of a hotel depends not only on its capacity, but also on day-to-day management. According to Extendam, in 2024, the average occupancy rate of hotels in France was 66%, with an average daily rate of €122, resulting in a RevPAR of €81. These figures highlight the importance of optimised management to maintain high performance.
Increased security
The hospitality industry offers better stability compared to other types of real estate investments, even during a crisis.
high demand in major cities
Major Cities and Regions Ensure a Steady Revenue Stream
INTERNATIONAL EVENTS
Conferences, seminars and sporting events such as the Olympic Games boost hotel occupancy.
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What are the strategies for maximising your investment and making it profitable?
A strategic approach to the hotel business
Maximising the profitability of a hotel investment requires a long-term vision and the ability to adapt to market changes.
- Investing in high-potential assets : Hotels located in rapidly growing urban areas or in emerging tourist destinations offer promising prospects. Moreover, converting underutilised assets (former offices, historic buildings) into hotel properties can represent an attractive opportunity.
- Betting on innovation and digitalisation: New technologies are transforming the hotel industry and helping to improve both management and the guest experience. The integration of automated booking systems, performance analysis tools, and smart management solutions (such as connected locks or voice assistants) optimises operations and reduces costs.
- Diversifying your hotel portfolio: Instead of concentrating all investments in a single project, it may be wise to diversify your assets across different types of hotels (boutique hotels, aparthotels, or others) and various locations. This diversification helps reduce risks and optimise the overall profitability of the portfolio.
- Tax optimisation and support schemes: Hotel investment benefits from several advantageous tax mechanisms (depreciation, tax credits, local grants). An optimised financial structure, combining bank financing, subsidies, and tax advantages, helps maximise net profitability.
What role do new technologies play in a profitable investment?
A crucial impact on the hotel industry
New technologies play a crucial role in optimising the profitability of hotel investments. By integrating advanced digital solutions, a profitable investment can be maximised through enhanced guest experience and reduced operating costs.
Management technologies: The use of hotel management systems (PMS and Revenue Management Systems) helps maximise profitable investment by dynamically adjusting prices based on demand, thereby optimising revenue.
Service automation: Automating processes such as contactless check-in or room management systems helps reduce staff-related costs while increasing operational efficiency, thus making the investment profitable over the long term.
Sustainable energy solutions: Adopting eco-friendly technologies such as solar panels or optimised energy systems reduces operational costs while attracting environmentally conscious guests, thereby strengthening the profitability of a sound investment.
4. Why choose Moon Hospitality to make a profitable investment?
Saisir les opportunités d'investissement hôtelier avec Moon Hospitality
At Moon Hospitality, we position ourselves as a key player in supporting investors seeking profitable opportunities. Thanks to our sharp expertise and personalised approach, we maximise the returns of each profitable investment by taking into account market specifics, emerging trends, and the unique needs of every client.
- In-depth expertise in the hotel market: Our team has extensive knowledge of the hotel industry, with expertise in market analysis and project evaluation. This expertise allows us to quickly identify profitable investments by considering economic, social, and environmental factors. We select hotels with high profitability potential thanks to precise risk and return assessments.
- A personalised approach for every investor: At Moon Hospitality, each investor has specific goals, and is therefore treated uniquely. That’s why we offer tailor-made solutions, whether for large-scale projects or smaller investments. Based on your expectations, we propose strategies tailored to maximise your returns, whether you're investing in a luxury hotel, an urban property, or an aparthotel.
- Continuous optimisation of management for long-term profitability: A profitable investment doesn’t end with selecting the right property. Effective management is key to ensuring long-term returns. Moon Hospitality places great importance on optimising the management of every hotel we invest in, by implementing rigorous strategies in revenue management, cost control, and continuous improvement of the guest experience. We ensure that each hotel generates the best possible returns.
- Access to an exclusive network of partners and opportunities: By choosing Moon Hospitality, you benefit from privileged access to an exclusive network of key players in the hotel industry, including owners, asset managers, and real estate developers. This network gives you access to profitable investments that are not always available on the traditional market. We support you in uncovering hidden opportunities.
- Transparency and support at every stage: Moon Hospitality is committed to providing complete transparency throughout your investment journey. We guide you at every step — from identifying the ideal opportunity to managing your investment, including financing and acquisition. Our approach enables you to make informed decisions and maximise your profitability while minimising risks.
