In April 2019, Reditum entered the development of a 4-star 60-key hotel and 90 hotel-operated residences and an on-site restaurant in the ski resort of Courchevel in the French Alps between villages 1550 and 1650. The project is part of a wider regeneration scheme which also includes retail, a new operable ski lift and Aquamotion waterpark. The development completed in December 2019, with the hotel opening to 100% occupancy and above-forecast revenue and full restaurant bookings; Reditum continues to hold this investment until stabilisation.
The hotel is priced to target families and holds year-round appeal due to the new Aquamotion waterpark. The hotel benefits from direct access to the new ski life via the boot room and a private connected entryway into the new water park. For this project, Reditum partnered with HPC Group, an expert in French real estate.
There is a limited supply of properties priced above €3 million in Courchevel 1650. Buyers are therefore prepared to pay increased prices but only for South-facing prime properties with direct access to the ski slopes making this development a huge opportunity. The area continues to attract a Russian and British clientele, and wealthy German and Brazilian buyers are starting to arrive on the market.
Courchevel 1650 is located on the opposite side of the valley from 1850 and 1550. It is considered to be a more family-oriented village; it is a location benefiting from good sun exposure and is slightly set back from the mountain relief. The ski slopes are accessible to children or beginners (green and blue slopes), and accommodation is more accessible.
In Courchevel 1650, demand is still focused on smaller chalets ranging in size from 250 m2 to 450 m2 and ranging in price between €2 million and €4 million. However the intense demand in Courchevel above 1650 is creating an opportunity for new developments in the area.
France as a whole remained the most visited country in the world in 2017 with 89 million visitors. According to INSEE, occupancy in hotels in mountains increased y-o-y by +1.9% in Q3 2018 proving there is demand for new hotels within ski resorts and mountainous areas.