With the 2024 Olympics now over, those in the French hospitality sector are pondering their next set of targets, opportunities and challenges.
For many years, France has enjoyed an enviable volume of international visitors, with Paris a truly global magnet for tourists. A new report from consultants Global Asset Solutions has laid out the issues that the sector faces in the coming years.
A key economic driver
Tourism accounts for 8% of French GDP, supporting more than 2 million jobs, directly and indirectly. For the immediate future, the country needs to take advantage of the global spotlight shone on it, during its hosting of the Olympics. The report notes there are challenges around over-tourism, and sustainability, and marketing the French regions appropriately such that demand is smoothed out.
Hotel investors remain keen on the fundamentals of the French market, with deal volumes increasing through 2024. Pricing power, notably in the luxury segment, has remained strong, while occupancy levels have still yet to hit pre-pandemic levels, suggesting an upside still to come for those buying trophy assets in the French capital, and in its southern destinations along the Mediterranean.
Paris continues to be a focus for development activity, with the Top Hotel Projects database recording more than 30 pipeline projects across the city. In the five star market segment, these include the Radisson Collection Paris, and LV Dream Hotel.
By mid 2025, the Hilton Paris Eiffel Tower will open its 118 rooms in a converted property near the city’s famous landmark. Spanish groups Pestana and Melia are also working on bringing their new, celebrity-linked brands to the French capital. Pestana expects to open a hotel in 2027 under its CR7 brand, developed with soccer star Cristiano Ronaldo; while Melia is working up plans for a ZEL branded hotel, a concept already open in several locations as part of a joint venture with tennis legend Rafael Nadal.
Outside the capital, the country’s historic heritage provides great opportunities to repurpose landmark buildings. IHG, for example, has opted to create its Six Senses luxury hotel in the Loire Valley out of a beautifully preserved château, creating a 50 room luxury retreat due to launch in 2026.
Brands look to regional opportunities
And the big brand groups see opportunities across France. One example is Marriott’s Moxy brand, which has a hotel in Nice under construction, as well as developments in planning in Annecy, Le Havre and a second Nice site.
Not to be outdone, France-based hotel group Accor is also developing in its home country. Its Tribe brand is close to opening a further Paris hotel, Tribe Paris Pantin, soon to be joined by hotels under construction in Montpellier and Reims. And its MGallery brand is expanding with new hotels in Marseille and Vannes.
