Covivio Hotels Reports Q1 2025 Revenue Growth

Covivio Hotels has announced a positive start to 2025, with revenues increasing by 4.6% on a like-for-like basis in the first quarter. This growth is attributed to a 3.5% rise in fixed revenues and an 8.8% surge in variable revenues, particularly strong in Southern Europe. The company credits its portfolio quality and asset management efforts for outperforming the market. However, these results exclude the impact from hotels acquired in late 2024, which saw operating income grow 13%, including a 14% increase in Paris.

The firm also reported a 10.9-year residual lease term by March's end. Additionally, Covivio Hotels continued its asset rotation strategy by signing €20 million in disposal commitments for four French assets. The company's 2024 dividend will be distributed as shares, offering flexibility to its shareholders.