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CoStar World News for July 17

African hotel franchising gains momentum; UK looks to ban upward-only commercial rent reviews; French logistics leasing rebounds
More African franchised hotels could be joining existing properties like IHG's Crowne Plaza Dar es Salaam in Tanzania.  (IHG Hotels & Resorts)
More African franchised hotels could be joining existing properties like IHG's Crowne Plaza Dar es Salaam in Tanzania. (IHG Hotels & Resorts)
By CoStar News Staff
July 16, 2025 | 10:26 P.M.

1. South Africa: Hotel franchising gains momentum

Industry analysts are expecting a wave of hotel franchising across the African continent as smaller brands seek ways to grow their presence while increasing management revenue at properties they don’t own.

With hotel contracts in Africa often being “very owner-centric,” Valor Hospitality Partners CEO Euan McGlashan said smaller third-party operators like his need to work even harder to earn management fees, which are separate from those charged by the global hotel brands. After years of franchising growth in regions like the Middle East, it’s now Africa’s turn, IHG Hotels & Resorts executive Amith Khanna said at a hotel summit in South Africa.

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2. UK: Government plans to ban upward-only rent reviews

The United Kingdom government announced plans to ban upward-only rent reviews for commercial property leases, seeking to end a common practice in which rents can only increase or stay the same when leases come up for renewal.

The proposed ban was introduced this month in Parliament as part of the English Devolution and Community Empowerment Bill and would prohibit upward-only clauses in new lease agreements in England and Wales. The government said such provisions “pit landlords against businesses and can make rents unaffordable and cause shops to shut.”

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3. France: Logistics property leasing rebounds

French logistics leasing is “maintaining its momentum in a difficult environment” so far in 2025, according to consulting firm Arthur Loyd Logistique. First-half leasing by square meters was down 7% from the same period of 2024, though this year’s first quarter showed significant demand growth and overall 2025 transaction activity is well above averages of recent years.

“In the current context, the end-user market is slowing down without collapsing,” said Didier Terrier, managing partner at Arthur Loyd Logistique. Even if users are holding back for lack of certainty about future demand, “we’re seeing several positive signs,” he said.

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4. Germany: International buyers boost hotel investment

Germany’s hotel property investments totaled about €900 million in the first half of 2025, rising significantly from a year earlier and driven largely by investors based outside the country, according to figures from brokerage firms CBRE, JLL and BNP Paribas Real Estate.

According to CBRE, 62% of the total transaction volume came from international capital, and six of the seven major deals over €50 million were attributable to foreign investors. The sale of the Mandarin Oriental in Munich to investor Eagle Hills, based in the United Arab Emirates, for around €150 million was cited as the most prominent deal of the first half.

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5. Canada: Major cities’ apartment rents move in different directions

A significant contrast has emerged among Canada’s largest rental apartment markets as demand is affected by slowing immigration, looming trade tensions and a tightening job market.

The Vancouver region posted a 4.9% decline in average asking rents in the first quarter compared to the same period one year earlier, with rents 3.7% lower in Toronto, 3.5% lower in Calgary and 4.2% lower in Halifax, according to the Canada Mortgage and Housing Corp. But Edmonton’s asking rents rose 3.9%, while Ottawa saw an average increase of 2.1% and Montreal rents registered 2% higher.

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6. US: Target, Starbucks ramp up in-office work mandates

The days of pandemic-era workplace flexibility appear to be waning as another round of some of the country’s largest employers step up their in-office requirements.

Coffee chain Starbucks and retailer Target are preparing to escalate their attendance policies in moves that coincide with broader efforts to turn around sales and shed privileges adopted in the earlier years of the global health crisis. A growing cohort of companies across the United States is demanding more in-person time from employees, either by revoking remote work privileges, increasing the number of days they’re required to commute to an office or asking a portion of the workforce to relocate closer to a corporate hub.

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This report was compiled from CoStar’s news publications in the United States, United Kingdom, Canada, France and Germany.

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