Europe -  Paris, France

Paris, the capital of France, enjoys an exceptionally well balanced mix of business and leisure demand, which allows the City of Lights to have both a broad seasonality and strong average rate. Paris has remained, alongside London, one of the two most desirable destinations for investment for more than a decade.

Since the presidential election in May 2017, the business environment in France has experienced positive change and Emmanuel Macron is well placed to implement plans to enact pro-business reforms. The EIU forecasts GDP growth to pick up to around 1.5% for the foreseeable future. Despite a very difficult 2016 for Paris, following the two terrorist attacks in January and November 2015 which were further compounded by similar events in Brussels and Nice in 2016, the hotel market slowly recovered in 2017 but remains fragile. Tourism arrivals for hotels increased in 2017 compared to 2016, but international tourism arrivals were still lower than 2015 levels. However, the market remains a favourite of investors and no uncertainty seems to have been factored into acquisitions. Paris is still one of the most attractive markets in Europe and, once again, has the highest price per room in our index. Despite the poor performance of the market in 2016, the overall perception remains one of strong performance, with the city’s hotels recording the highest average rates in the world, and high barriers to entry compounding potential investment returns. The future organisation of large events, such as the 2018 Ryder Cup, the 2023 Rugby World Cup and the 2024 Summer Olympic Games will maintain Paris’s ranking at the top.

In 2017, the Hotel de Crillon (under Rosewood) and the Ritz came back to the market with a partial inventory (the rest of the rooms will open in mid-2018). Over the next couple of years, Hilton Worldwide will rebrand the former 128-room Astor Hotel Saint-Honoré to a Curio. Furthermore, InterContinental Hotels Group recently announced that its second European Kimpton property will open in Paris: the 149-room hotel is scheduled to open in early 2020 and will be in a converted office building on boulevard des Capucines and rue Daunou. Another office conversion will be the 76-room Hôtel de Berri, a Luxury Collection Hotel, scheduled to open in June 2018. Other projects over this period include various re-openings: the 79-room Le Lotti (March 2019), Le Lutetia (April 2018), a Fauchon-branded hotel (mid-2018), the Cheval Blanc in the former Samaritaine department stores (end of 2019), a 76-room Bulgari Paris (early 2020) and a 200-room SO Sofitel Paris on the Champs-Elysees (early 2021).

Change In Value For Market: (€Euro)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Paris RevPAR Change (€Euro)

Paris RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
sperret@hvs.com
  • +44 20 7878 7722 (w)
Simon Hulten
shulten@hvs.com
  • +44 020 7878-7775 (w)