For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
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As the capital of France, Paris 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. Alongside London, Paris has remained one of the two most desirable destinations for hotel investment in Europe for more than a decade.
The Paris hotel market was impacted by a number of incidents in the years leading up to the pandemic. 2016 was strongly affected by the terrorist attacks the year prior. The market then recovered in 2017 and 2018, until December 2018 when the ‘yellow vests’ movement disrupted the capital. This continued into 2019 and was then joined by the pension reform strikes. The Paris hotel market suffered, driven by a decrease in visitors from the USA and Asia, who are particularly sensitive to safety concerns. The Paris hotel market proved to be quite resilient to the pandemic shock compared to other gateway markets in Europe, as its RevPAR levels recovered at the fasted pace by some margin, starting during H2 2021. 2022 consolidated an exceptional recovery for Paris, with RevPAR levels exceeding 2019 levels by almost 20%, mainly driven by an exceptional increase in rates, and the return of high-yielding international leisure visitors, such as Americans enjoying strong purchasing power thanks to the strength of the US dollar. In 2023, occupancy had almost practically recovered to its pre-pandemic levels. Paired with double-digit average rate growth, delivered a remarkable RevPAR which, even adjusted by inflation, was a third higher than in 2019.
In 2024, Paris is hosting the Olympic Games from July 26th to August 11th, and the Paralympic Games from August 28th to September 8th, which is expected to further boost the demand in the city. Moreover, the Notre Dame Cathedral is expected to reopen in December 2024.
The current hotel pipeline in Paris includes 1,800 rooms entering the market in the next four years, representing around 2% of the existing supply. Approximately 80% of the new supply is under construction, and nearly half is due to open in 2024. Amongst the most notable hotels in the pipeline, are the 65-room Hotel Maison Hamelin, Handwritten Collection (June 2024), a Accor brand that launched in 2023, the 139-room Lyf Gambetta Paris (October 2024), launching the coliving brand in Europe, the 118-room Hilton Paris Eiffel (February 2025) and the 128-room Radisson Blu Triangle Hotel (2026) located in the soon to be landmark Tour Triangle at Paris Expo Porte de Versailles. It has also been announced that a 100-room Louis Vuitton hotel is to open in their Paris headquarters by end of 2026.
Paris remains a favourite of investors and no uncertainty seems to have been factored into acquisitions, owing to the general resilience and strong fundamentals of the market. Some noteworthy transactions in 2023 include the purchase of the 172-room Hotel California for €120 million (€698,000 per key), the 44-room Hotel Abbaye de Saint-Germain for €50 million (€1.1 million per key), the 428-room Westin Paris Vendôme for a reported €650 million (€1.5 million per key), and the 44-room Le Darmantin for €55 million (€1.3 million).
The strong recent performance and positive outlook for the short term thanks to the Olympics and the general appeal of the city, mean that, overall, hotel values increased by 3.5% in 2023 compared to 2022, above the European average increase of 1.3%.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
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