Eurogroup Holidays Blog

Eurogroup has been keeping a close eye on the turmoil engulfing the world economy, triggered by the US subprime debacle. Property speculation is passé. The French tourist property market has not been immune to it, although the current devaluation of worldwide property has barely hit French residential property. As the value of real estate weakens so, logically, will rental yields, a fact alien to many investors, having grown used to solid returns for nearly a decade. To add to the pain, bank credit is drying up, as financial institutions seek to strengthen their balance sheets. Many French property firms are finding themselves with years of unsold inventory on their books.

Recently, the crunch claimed its latest victim, Maison de Biarritz, the Basque country property developer. It went into administration on 29^th September.

“We’ve known that MdB has been teetering on the verge for months now” says Richard Green, Director of EG. “Their business model was simply not sustainable: Sell properties at inflated rates, offer unrealistic rental contracts to investors and finance these rents from their own in-house management company, itself supported by future property sales. It was a pyramid scheme disaster waiting to happen. Mind you, the properties are pretty nice!”

So where next for owners in the embattled Residence de Tourism sector? Mr Green warns caution for owners whose management contract is with a company whose ultimate onwners rely on property sales.

“For each Maison de Biarritz, there are an other 4 or 5 fundamentally weak companies out there” says Green. “Newcomers joined the market when there seemed to be a never ending supply of willing investors. But many management companies are from the real estate sector and have little or no experience of Tourism. We avoided most of the low calibre residences that were offered to us, though in hindsight we made one or two mistakes ourselves” he adds. “What surprised us was just how gung-ho some of our competitors were, accepting high rents for property with little tourist potential.”

Eurogroup is having to unwind positions in some of the weaker properties in its portfolio. “Of courses it’s painful for investors who were sold properties in second rate destinations” comments Mokrane Ouar, leader of the renegotiation team, “but we’re a strong company and we make sure our owners receive their rent – I wouldn’t like to be sitting in a property run by some of our competitors!”

Meanwhile, who next to go to the wall? “We have a good idea of which of our competitors are up to the challenges ahead. Some, I’m afraid, will fall at the next hurdle.”says Green enigmatically…

At Moliets this weekend, we have had the pleasure to welcome the 12th Oilmen Grand Prix, a private event organised by companies in the Oil and Gas industry and held on the golfs of Seignosse and Moliets.  This event enables golfers working in these companies to enjoy a friendly, but nonetheless competitive round of golf, while making the most of the tasty local menus, fines wines and the welcome that the South West has to offer.  

Discovered by Jean Carriey on the famous Scottish course of St Andrews, the idea of an enjoyable golf competition held in true Scottish spirit was brought to France in 1995, and the delightful resort of Moliets was chosen to host it. The event is organised with the Residence Hotelière du Golf enabling the golfers to stay in their apartments and villas. The event has become part of the Moliets calendar,  with good humour and spirit, carried along by Christian Duffard, Merrick Walford and all the Oilmen Grand Prix committee.  May the golfing spirit live on and may many more Oilmen Grand Prix Events be held in this lovely resort.   

Chambery, July 2008.

In a recent decision by the Commercial Court in Nice, Eurogroup were narrowly pipped to the post in being chosen to take-on the assets and management contracts of recently liquidated Life Valley, a company that manages 20 residences throughout France.

The company had been put into administration in  April 2008 and subsequently was auctioned off in July 2008. Some investors had not received rental payments since 2007, with some individuals owning large portfolios of apartments. A source close to one of owners’ association expressed relief that at last there may be some closure to their travails.

Two viable candidates, a consortium led by Eurogroup, and Quietude Evasion from la Rochelle - were shortlisted from a field of 14. Despite Eurogroup’s offer to take-on all the liabilities and property contracts of the failed company, Judge Westrelin decided in favour of Quietude’s offer to only partially honour the existing rental contracts.

“We are completely baffled by the court’s decision” comments Roger Borne, president of Eurogroup, “Sure, we do not invest heavily in owner/investor public relations, and maybe that influenced The judge, but we’ve have a unrivalled record for owner payment and the investors at Life Valley could have looked forward to us continuing that record”.

Richard Green, Director General, is less sanguine “The Court has chosen a relative newcomer with limited experience in a challenging economic climat. I wish them luck, they’ll need it”. Sour grapes perhaps?

     Renovating your house, leaving town on business, need a long term place to stay? Look no further than Eurogroup-Vacances. We offer long term stays at our residences for unbeatable prices. Apartments by the beach, chalets in the mountains, whatever you are looking for, get in touch now - lbrackenridge@eurogroup-vacances.com  

 Despite the credit crunch currently hitting the global market, people are not being discouraged from booking their holidays. Reservations here at Eurogroup are holding up, so much so, that we are ahead of last year’s figures with a 20% rise in reservations taken for our Chalets de l’Adonis at les Meniures and for the Résidence Cami Réal at St Lary. To add to this, even our new sites, such as the Résidence Sun Valley at La Plagne, are continuing to fill up. Good news for the coming winter season..

As the nights get longer and the days get colder - some kind of excuse was needed to celebrate a successful summer, and before entering into the ever busy snow period.                                 An event was held at the revamped hotel the “Bon Accueil” home to Eurogroup’s stagiaires. Despite the rain, spirit’s were high, thanks to a few glasses of wine, cheese, cake, and of course DJ Richie Rhythms, taking us into the early hours with his ever popular musical selection.

Once again, another memorable party held at the Bon Ac. Now, back to the office for some hard work in preparation for this year’s winter season.

Here at Eurogroup, we want our staff to be able to advise you on your choice of holiday destination so you can really make the most of your stay.  That’s why we organise regular “Eductours”, where members of Eurogroup staff are let loose from the office for a few days to visit our various residences. 

Last week saw an Eductour organised by contracts manager Natalya to the Southern Alpes. It was an early start on the Thursday en route to Residence Les Valmonts at Valloire, then on to Chalet du Jardin Alpin at Serre Chevalier.

A pit stop was made in the beautiful Alpine village of Vallouise for some “dejeuner”, before heading back to the minibus. The afternoon schedule included our residence Hameau des Ecrins at Puy St Vincent, before settling into our rooms for the night in Le Parc des Airelles at Les Orres. 

After a busy day’s travelling around the mountains – a good old meal was in order, whether it be a typical Alpine tartiflette, pizza, or indeed a tartiflette pizza!

Another early start again the next day, then off to our residence at Orcieres; our chalets at La Joue du Loup, and a final stop at Les Chalets de Super D at Superdevoluy before heading back to our head office in Chambery.  A great time was had by all…so when’s the next one?! 

The 26th June saw the annual Eurogroup summer BBQ held in the gardens of the head office in Chambéry. After another year of great sales and and the taking over of new residences, celebrations were in order.

The night kicked off at 7pm with numerous excitable children waiting for their turn on the bouncy castle.  Entertainment for the adults came quickly after in the form of the free bar as well as the unveiling of the surprise activity - a bucking bronco!!

After having worked up an apetite, the barbecue was up and running by 9pm - burgers, sausages, salad, bread, cakes and ketchup all round!

Goes without saying that a party is not a party without a bit of music - provided by the talented “Faith Is” from Annecy. Then of course, no Eurogroup Party is complete without a guest appearence from our very own Director DJ Green on the decks..

 Celebrations continued well on into the early hours - needless to say there were a few faces turning up late for work the next morning..not mentioning any names…DAVE CHAMBERS!

A great night had by all - a big thanks to Alice, who organized the event, and everyone else who helped out! Roll on next year..

Oh, and in case you were wondering - the bucking bronco record was won by our very own cowboy, I mean Director, Mr Borne - a total of 84 seconds. Bravo!

23 and 24 July 2008

Alpe d’Huez / Bourg d’Oisans

This year, the cyclists competing in the Tour de France will, for the 26th time, have to face the famous climb of Alpe d’huez.

The legendary climb with its twenty one bends is one of the most difficult, yet favorite stages of the race for many of the riders.

This year will be the 26th time the race has run through the resort, bringing with it the same passion, the same enthusiasm, and a great sense of fun!

This great event is organised by the Dauphiné Flying Club, together with Alpe d’Huez, in order to offer a unique demonstration of mountain flying. Over two days enjoy different demonstrations from both olden and modern day planes, from helicopters to parachutes, flight simulators as well as demonstrations from the French Air Force.  A great family day out with plenty entertainment for the kids and what is more - it’s completely free!!