Long famed for its ski resorts, mountain towns in the French Alps have recently seen an uplift in investor interest; Climate change is driving record transaction levels in high-altitude, luxury hotels.

The Savoie and Haute-Savoie regions alone have seen hotel transaction volumes double over the past two years, breaking records with more than €800 million ($875 million) of hotel deals closed, JLL data shows.

“Due to the warming climate, and limited new supply of ski resorts, more snow-sure locations at higher altitudes are commanding premium values,” says Matthieu Subit, JLL’s Vice President of Hotels and Hospitality for EMEA Capital Markets.

In fact, 80% of 2023 transactions in the Alps were located at, or above, 1800 meters. Prime resorts generated significant investor interest, with €235 million ($257 million) of hotel deals closed in the prestigiously exclusive area of Courchevel, accounting for 56% of all transactions in the region.

Institutional investors have been the most active participants, accounting for almost 60% of total deal volumes, including the acquisition of Club Med properties in Samoens and La Rosière in 2022, and the Club MMV La Plagne in 2023.

Subit says that it’s also been an unrivalled period for portfolio transactions, largely driven by the acquisition of brands like Lodge and Spa Mountain and the Temmos chain. “Major operators are seeing solid performance especially in the upscale segment, which is attracting a host of savvy investors,” he says.

Targeting those with a taste for luxury

Surging investment demand is transforming the Alps hotel industry, especially when it comes to luxury. A deliberate shift in focus has seen room availability at the lower end of the scale decrease, while L’Agence Savoie Mont Blanc reported 4 and 5-star rooms increased by 4.4% over the same period.

Room nights in the top market segments have also risen, with 4-star and 5-star overnight stays up more than 17% between 2019 and 2023, according to INSEE, the national statistics bureau of France.

It’s being driven by several high-end hotel projects, including Hôtel VoulezVous Tignes le Lac, Chalet-Hôtel Le Kaya, Les Menuires and M Lodge, Saint-Martin-de-Belleville.

Meanwhile, the redevelopment of existing accommodations into sumptuous private chalets, such as La Solière, Iconic House and Ultima, further reinforces the growth of lavish accommodation in the region.

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