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HVS In-Depth Europe Hotel Valuation Index:   2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001

As the capital of France, Paris boasts a unique and well-balanced blend 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 over a decade.

The Paris hotel market faced several challenges in the years leading up to the pandemic. In 2016, Paris was significantly impacted by the terrorist attacks of the prior year. The market began to recover in 2017 and 2018, but was again disrupted in December 2018 by the 'yellow vests' movement, which continued into 2019 and was later joined by the pension reform strikes. The market experienced a decline owing to a reduction in visitors from the USA and Asia, who are particularly sensitive to safety concerns. Compared to other major European gateway cities, Paris proved more resilient to the pandemic shock, with its RevPAR recovering at a fast pace, starting in the second half of 2021. The recovery continued in 2022, with RevPAR levels surpassing 2019 figures by nearly 20%, driven by significant average rate increases and the return of high-spending international leisure travellers, particularly Americans benefiting from a strong purchasing power thanks to the strength of the US dollar. By 2023, occupancy nearly returned to pre-pandemic levels. Coupled with double-figure average rate growth, this resulted in a remarkable RevPAR, which, even adjusted for inflation, was nearly a third higher than in 2019. Paris's 2024 hotel market was shaped by the hosting of the Summer Olympic and Paralympic Games. While the Olympics drove significant demand, the Paralympics had a more subdued impact in terms of hotel demand, and the pre- and post-Olympics periods proved challenging owing to site preparations, which hindered room bookings and food and beverage footfall for many hotels. The market rebounded in November and saw further uplift in December with the reopening of Notre Dame Cathedral. Overall, occupancy contracted slightly against 2023 while average rates rose, resulting in a modest RevPAR increase for the year. Furthermore, Paris’s high barriers to entry and limited net supply growth over the past decade have also strengthened the recovery and resilience of its existing stock.

Looking ahead, 2025 is expected to bring greater stability to the market. Early-year demand was supported by major events, including summits focused on artificial intelligence and European security and defence. We note that the fluctuations of the US dollar and developments in the American economy remain key factors to monitor, given the substantial influence of US visitors on Parisian hotel performance, particularly during the summer season.

The current hotel pipeline in Paris includes 1,600 rooms (22 projects) entering the market in the next three years, representing around 2% of the existing supply. Approximately 60% of the new supply is under construction, and 30% is due to open over the course of 2025. The remaining 70% is split over 2026 (25%) and 2027 (45%). Amongst the most notable hotels in the pipeline are the recently opened 139-room Lyf Gambetta Paris (May 2025), launching the co-living brand in Europe; the 128-room Radisson Blu Triangle Hotel (2026), located in the soon-to-be-landmark Tour Triangle at Paris Expo Porte de Versailles; the 100-room Louis Vuitton hotel (late 2026), set to open in LVMH’s Champs-Elysées headquarters; and the 210-room Pestana CR7 Paris near Gare d’Austerlitz (2027), hereby launching the brand in the country. It was also recently announced that a 107-room Maybourne Hotel along with 23 residences would open over the course of 2027 in Saint-Germain, marking the group’s entry into Paris.

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 2024 include the purchase of the 43-room Sinner Paris for €52 million (€1.2 million per key), the 144-room Saint James & Albany for a reported €195 million (€1.4 million per key), the 138-room Mandarin Oriental for €205 million (€1.5 million per key), the 430-room Pullman Tour Eiffel for €330 million (€767,000 per key), the 109-room Dames des Arts for €119 million (€1.1 million per key) and the 268-room Hilton Opera Saint-Lazare for €240 million (€896,000 per key).

The resilient characteristics of the market and general appeal of the city coupled with the disruptions in the market pre- and post-Olympics, mean that, overall, hotel values remained flat in 2024 compared to 2023, below the European average increase of 2.0%, as reported in our European Hotel Valuation Index 2025.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

ADR Change
Market Demand Change
Hotel Occupancy Increase/Decrease
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Market Supply Growth

Change In Value For Market: (€Euro)

Paris RevPAR Change (€Euro)

Paris RevPAR (€Euro)

For more information, please contact:

	Sophie Perret, MRICS, MBA Managing Director [email protected] +44 0 7725781037 (m)
	Margherita Rivetti Consulting & Valuation Analyst [email protected] +44 0 7955271797 (m)
	Tabitha Watkins Analyst [email protected] +44 0 7562956921 (m)