Covivio Hotels SCA, formerly known as Foncière des Murs, is a leading European real estate investment trust (REIT) focused exclusively on the hospitality sector. As a subsidiary of the broader Covivio real estate group, the company specializes in the acquisition, ownership, and management of hotel properties and related operating businesses. Its portfolio comprises hundreds of hotels strategically located in major European cities and tourist destinations across France, Germany, Italy, Spain, and the United Kingdom.
The company's business model is built on forming long-term real estate partnerships with major global and regional hotel operators, including AccorInvest, B&B Hotels, NH Hotel Group, IHG, and Radisson Hotel Group. Covivio Hotels generates revenue through three primary structures: fixed-rent leases, variable-rent leases indexed to the operators' revenue performance, and EBITDA generated from directly owned and operated hotel properties. For instance, its revenue breakdown typically consists of a balanced mix of fixed rents, variable rents, and management contract EBITDA. This hybrid lease structure allows the company to secure a stable baseline of rental income while also capturing the upside of strong hotel operational performance.
Geographically, the company's assets are heavily concentrated in prime European markets, with a strong emphasis on midscale and upscale hotel segments. By focusing on well-located, high-quality assets and maintaining long average lease terms, Covivio Hotels ensures high occupancy rates and predictable cash flows. The company continues to actively manage its portfolio through targeted acquisitions, asset repositioning (such as converting office buildings into hotels), and capital recycling, solidifying its position as a premier institutional landlord in the European hospitality real estate market.
