©picture alliance / PHOTOPQR/L'ALSACE/MAXPPP | Jean-François FREY
Will your vacation money soon be flowing to Abu Dhabi? It’s certainly possible, as investors from the capital of the United Arab Emirates are systematically buying up a large number of bungalow parks, campgrounds, and vacation resorts in Europe.
Investment funds from the Gulf state are increasingly taking over European bungalow parks, campgrounds, and vacation homes. The era in which European vacationers primarily lined the pockets of European operators seems to be coming to an end.
The fact that vacations remain a major expense even in tougher economic times makes the sector particularly attractive. After all, many families don’t want to cut back on their summer vacations, and that’s exactly where the profit lies for investors. On Monday, Mubadala Capital, part of Abu Dhabi’s sovereign wealth fund, made a binding and fully financed bid of nearly one billion euros for the French company Pierre & Vacances-Center Parcs. The company is one of the largest providers of bungalow parks, apartments, and vacation homes in Europe and operates Center Parcs, among other properties, in the Netherlands and Belgium.
Pierre & Vacances has approximately 330 locations and tens of thousands of accommodations across Europe. If 80 percent of the shareholders approve, the acquisition could be finalized in early 2027. Last year, Abu Dhabi also acquired a stake in the European Camping Group, which is bringing an increasing number of campgrounds and RV parks under one umbrella.
This trend is part of a broader move toward economies of scale within the recreation sector. Small, independent operators are increasingly dropping out, while large groups are gaining ground. As a result, control over valuable recreational real estate and tourist sites in Europe is increasingly shifting to well-capitalized foreign funds.
Pierre & Vacances itself has been built on expansion for years. Through acquisitions, the group has grown into a major player in the European vacation rental market and benefits from a business model in which it owns relatively little real estate itself. For Mubadala, this makes the company an attractive investment in a market with stable demand and high occupancy rates.
©picture alliance / PHOTOPQR/L'ALSACE/MAXPPP | Jean-François FREY