Covivio Hotels Sca · EURONEXT:COVH
Covivio Hotels Sca — Covivio Hotels — Debt Investor Presentation (June 2023)
39 slides from Covivio Hotels Sca's debt investor presentation, Jun 21, 2023
Slide 1: Covivio Hotels Presentation
Build sustainable relationships and well-being Radisson Red - Madrid Westin Grand - Berlin COVIVIO HOTELS PRESENTATION JUNE 21ST, 2023 Charlotte Square - Edinburgh Anantara Hotel - Nice
Slide 2: Covivio Hotels at a glance
COVIVIO HOTELS AT A GLANCE Covivio Hotels, leader in Europe with a diversified … subsidiary of Covivio pan-European portfolio in prime locations, … Covivio Hotels business at a glance Covivio Hotels is a SCA “Société en Commandite par Actions” €6.7bn Prime 8.8 (Limited Partnership), fully controlled
Slide 3: Covivio, a longstanding sustainability journey
COVIVIO, A LONGSTANDING SUSTAINABILITY JOURNEY 2008 - 2011 2016 - 2018 2020 2022 Launch of the CSR policy Issue of the 1st Green Bond Mapping of CSR risks Greening of 100% of Covivio Signing of the (€500M) for Covivio related to purchases bond debt and new Diversity Charter Sustainable Bond Framewor
Slide 4: Summary
SUMMARY I. ESG at the heart of Covivio Group’s strategy 5 II. Covivio Hotels tailor-made ESG approach 8 III. A Green Financing Framework highlighting the quality of the portfolio 15 IV. Focus on Consent solicitation 23 V. Key takeaways 28
Slide 5: I. ESG at the heart of Covivio Group's strategy
I. ESG AT THE HEART OF COVIVIO GROUP’S STRATEGY Kimpton - London
Slide 6: Our purpose, the backbone of our ESG strategy
OUR PURPOSE, THE BACKBONE OF OUR ESG STRATEGY Group Purpose Build sustainable relationships and well being AN AMBITIOUS ESG APPROACH, … WELL RECOGNIZED BY ESG RATING AROUND 4 CORE AXES… AGENCIES (Covivio Group ratings) 1. SUSTAINABLE BUILDINGS B- rating Negligible risk 2. WELL-BEING OF Best possible
Slide 7: Strong ESG commitments on our portfolio
STRONG ESG COMMITMENTS ON OUR PORTFOLIO An ambitious decarbonisation trajectory Target 100% certified portfolio AHEAD OF OUR CARBON TRAJECTORY Already 93% certified at end-2022 TARGET ALL ALONG ITS VALUE CHAIN (Scope 1, 2 and 3) In Carbon intensity (kgCO2/m2/year) 7
Slide 8: II. Covivio Hotels tailor-made ESG approach
II. COVIVIO HOTELS TAILOR-MADE ESG APPROACH Kimpton - London
Slide 9: A tailor-made ESG strategy addressing the hotels real estate sector specificities
A TAILOR-MADE ESG STRATEGY ADDRESSING THE HOTELS REAL ESTATE SECTOR SPECIFICITIES Specific ESG challenges …Covivio Hotels specific ESG approach of the Hotels Real Estate sector… GHG emissions and energy consumption Ambitious decarbonation and energy reduction related to hotel operations trajectories
Slide 10: A high performance portfolio aligned with a 1.5°C scenario
A HIGH PERFORMANCE PORTFOLIO ALIGNED WITH A 1.5°C SCENARIO CARBON INTENSITY OF THE COVIVIO HOTELS PORTFOLIO in kgCO2e/m2 at operating asset level incl. the GHG emissions related to energy consumption of the hotel operators In line with a 1.5°C scenario 80 70 -70% targeted between 60 2010 and 2030 50
Slide 11: Beyond carbon, addressing the overall environmental impact
BEYOND CARBON, COVIVIO HOTELS IS ADDRESSING THE OVERALL ENVIRONMENTAL IMPACT Promoting more sustainable operations Targets 2022 achievements Key highlights 308 kWhpe/m²/year 273 kWhpe/m²/year Longstanding commitment in the energy efficiency of its in energy consumption by 2030 in energy consumption
Slide 12: An ESG strategy built on long-term engagement with tenants and stakeholders
AN ESG STRATEGY BUILD ON LONG-TERM ENGAGEMENT WITH ITS TENANTS AND ITS STAKEHOLDERS Covivio Hotels is supporting …beyond direct stakeholders, the Covivio Foundation CSR efforts of tenants and managers… is committed to promoting equal opportunities Foundation created in 2020 and linked to Covivio's p
Slide 13: Covivio Hotels first EU Taxonomy alignment analysis
COVIVIO HOTELS FIRST EU TAXONOMY ALIGNMENT ANALYSIS In 2022, Covivio Hotels performed an analysis of its taxonomy eligible and aligned CAPEX and revenues, whose methodology and results have been reviewed by EY. It has worked with a third party to study the compliance of its procedures and policies i
Slide 14: Amongst the best REIT players in taxonomy aligned revenue and capex
COVIVIO HOTELS AMONGST THE BEST REIT PLAYERS IN TERMS OF TAXONOMY ALIGNED REVENUE AND CAPEX Covivio Hotels is among the top performing REITs in Europe both in terms of revenue-aligned and Capital Expenditures aligned with the EU Taxonomy demonstrating the high environmental performance of its portfo
Slide 15: III. A Green Financing Framework highlighting the quality of the assets
III. A GREEN FINANCING FRAMEWORK HIGHLIGHTING THE QUALITY OF THE ASSETS The Sign--London Kimpton Milan
Slide 16: Targeting a 100% green financing structure
TARGETING A 100% GREEN FINANCING STRUCTURE Establishing a 100% green financing program linked to a €3.8bn (€2.9bn net1) portfolio of Eligible Green Assets as defined in Covivio Hotels’ Green Financing Framework Rationale Provide strong consistency with Covivio Group’s past requalification exercise
Slide 17: A pioneering Green Financing Framework for the hotels real estate sector
A PIONEERING GREEN FINANCING FRAMEWORK PAVING THE WAY FOR THE HOTELS REAL ESTATE SECTOR On the back of its leading sustainability approach, Covivio Hotels is implementing a Green Financing Framework that: serves as the reference document for 100% future bonds and requalification of existing conven
Slide 18: A framework concentrating best market practices
A FRAMEWORK CONCENTRATING BEST MARKET PRACTICES USE OF PROCEEDS MANAGEMENT OF PROCEEDS Proceeds used to (re)finance an Eligible Green Portfolio that comprises: An amount equal to the proceeds issued under this Framework will be earmarked for allocation to the Eligible Green Portfolio Green Hot
Slide 19: Overview of Covivio Hotels' eligibility criteria
OVERVIEW OF COVIVIO HOTELS’ ELIGIBILITY CRITERIA RENEWABLE ENERGY & ENERGY GREEN HOTEL BUILDINGS EFFICIENCY MEASURES Acquisition & Best market Renovation Construction Eligible Green Criteria Ownership practices On-site following equipment and GHG intensity thresholds as defined instruments that comp
Slide 20: A €3.8bn (€2.9bn net) eligible green portfolio
A €3.8bn (€2.9bn net) ELIGIBLE GREEN PORTFOLIO €3.8bn value 197 eligible hotels 100% of Green Assets eligible under the Acquisition & Ownership criteria ELIGIBILITY CRITERIA TENANTS GEOGRAPHY DISTRIBUTION DISTRIBUTION DISTRIBUTION 5% Other 3% Tenants 13% Other countries 10% 20% EU Taxonomy Belgium &
Slide 21: Green eligible portfolio performance analysis
GREEN ELIGIBLE PORTFOLIO PERFORMANCE ANALYSIS Performance of the assets aligned Performance of the assets aligned with the CRREM eligibility criteria (97%) with the EU Taxonomy eligibility criteria (23%) 2022 performance of assets aligned 2022 performance of assets aligned with the CRREM eligibility
Slide 22: Top 10 hotels included in the eligible portfolio
TOP 10 HOTELS INCLUDED IN THE ELIGIBLE PORTFOLIO 1. Palazzo Naiadi Roma 5. Méridien Nice 9. The Westin Leipzig TOP 2. Park Inn Alexander Platz 6. Ibis Paris Cambronne 10. Meininger Porte de Vincennes 10 Hotels 3. Mercure Tour Eiffel 7. Kimpton Fitzroy London 4. The Westin Grand Berlin 8. NH Amsterda
Slide 23: IV. Focus on consent solicitation
IV. FOCUS ON CONSENT SOLICITATION Kimpton - London
Slide 24: Overview and timeline of the consent solicitation
OVERVIEW AND TIMELINE OF THE CONSENT SOLICITATION Overview Expected Timeline Covivio Hotels has announced a Consent Solicitation of its EUR Senior bonds outstanding to approve a requalification as Green June, 21 – Launch of the Consent Solicitation Bonds July, 5 (00:00 am) – Deadline for provi
Slide 25: Bonds subject to the consent solicitation
BONDS SUBJECT TO THE CONSENT SOLICITATION Bond Description ISIN Issue Date Maturity Coupon O/S Amount 2025 Bonds FR0013367422 24/09/2018 24/09/2025 1.875% € 350m 27/07/2021 € 500m 2029 Bonds FR0014004QI5 27/07/2029 1.000% 02/11/2021 (tap) € 99m (tap) Quorum and Majority Requirements Quorum requireme
Slide 26: Allocation proposal
ALLOCATION PROPOSAL Quorum and Majority Requirements 3.1 times Covivio Hotels currently has €949m of Senior Bonds outstanding maturing in 2025 and 2029 Currently, €3.8bn (€2.9bn net) of Covivio Hotels’ assets are eligible €2 900m Green Assets €949m Covivio Hotels contemplated Covivio Hotels Eligible
Slide 27: Documents and contacts for the consent process
DOCUMENTS AND CONTACTS FOR THE CONSENT PROCESS Documents available to investors Press Release Covivio Hotels’ Framework Proposed Resolutions (text of which is reproduced in section 4 of the Second Party Opinion provided by Moody’s ESG on Covivio Hotels’ convening notices) Framework Conveni
Slide 28: V. Key takeaways
V. KEY TAKEAWAYS Kimpton - London
Slide 29: Key takeaways
KEY TAKEAWAYS A pioneering Green Financing Framework in the hotels real estate sector… …highlighting Covivio Hotels best-in-class ESG approach in the segment Carbon intensity -70% by 2030 (vs. 2010) with a comprehensive approach: Ambitious decarbonation trajectory with a high performance portfolio
Slide 30: Covivio Hotels – key credit strengths
COVIVIO HOTELS – KEY CREDIT STRENGTHS S Large portfolio 365 assets, including 316 hotels valued at €6BN Geographical diversification strategy Strong Recovery Presence in 12 European countries, RevPAR in Europe in April 2023 up +10% YTD (vs. 2019) each of them representing less than 32% LFL Revenues
Slide 31: Appendices
APPENDICES Kimpton - London
Slide 32: Towards 100% environmentally certified hotels
TOWARDS 100% ENVIRONMENTALLY CERTIFIED HOTELS Given hotels sector specificities, Covivio Hotels approach is geared towards sector-specific certifications integrating all aspects related to hotel management operations Share of Certified Portfolio Focus on Hotels portfolio certifications 2,0% 3,3% Cer
Slide 33: Focus on CRREM decarbonisation pathways
FOCUS ON CRREM DECARBONISATION PATHWAYS The Project Carbon Risk Real Estate Monitor (CRREM) provides the real estate industry with transparent, science-based decarbonisation pathways aligned with the requirements of the Paris Agreement to limit global warming to a maximum of 1.5°C. Dynamic traject
Slide 34: Focus on taxonomy alignment eligibility criteria
FOCUS ON TAXONOMY ALIGNMENT ELIGIBILITY CRITERIA Covivio Hotels’ Framework includes a 100% taxonomy-aligned eligibility criteria, meaning that taxonomy-aligned assets and CAPEX must: Make a substantial contribution (SC) Comply with minimum safeguards to the climate mitigation objective of Do No Sign
Slide 35: Moody's has provided a robust second party opinion
MOODY’S IS HAS PROVIDED A ROBUST SECOND PARTY OPINION Moody’s Investors Service (MIS) considers that Covivio Hotels Framework is aligned with the four core components of the ICMA Green Bond Principles 2021 and the LMA Green Loan Principle 2023. It incorporates MIS-identified best practices for all t
Slide 36: Example of green eligible assets: Meininger Porte de Vincennes
EXAMPLE OF GREEN ELIGIBLE ASSETS MEININGER PORTE DE VINCENNES A development operation managed by Covivio Hotels Delivery date: 2019 Surface: 8,000m² (250 rooms) First MEININGER location in France Environmental certification (HQE) to achieve a very high level of performance Innovative construction me
Slide 37: Example of green eligible assets: Motel One Porte Dorée
EXAMPLE OF GREEN ELIGIBLE ASSETS MOTEL ONE PORTE DORÉE Managed by Covivio Hotels Delivery date: 2018 Surface: 6,200m² (250 rooms) Covivio conducted a “Cradle to Cradle” (C2C) study. The concept of “cradle-to-cradle” underlies the idea that in the future, raw materials used in the construction of new
Slide 38: Covivio Hotels – company description
COVIVIO HOTELS – COMPANY DESCRIPTION COMPANY DESCRIPTION PORTFOLIO BREAKDOWN BY SHAREHOLDING STRUCTURE VALUE & GEOGRAPHY Covivio Hotels, a 43.9%-owned subsidiary of Covivio, is a listed property Netherlands Others Sogecap Free Float investment company (SIIC) and leading hotel real-estate player in
Slide 39: Disclaimer
DISCLAIMER This document (the “Presentation") may contain information, opinions and certain forward looking statements that reflect Covivio Hotels‘ management's current views with respect to future events and financial and operational performance of the Group. These forward looking statements are ba
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