Last update: january 2024
Investment Trends
In 2023, the hotel transaction volume in Greater Paris reached €1.7 billion, marking a 27% rise from
2022. The significant increase was primarily driven by The Westin Paris transaction, making up 40% of
the total volume, with a price per key exceeding €1.5 million. Excluding this major transaction, the
total volume would have been 23% lower than the level recorded in 2022.
Prime Yields
Following a sharp increase in benchmark interest rates initiated in mid-2022 to combat inflation and a
series of rate hikes halted in October 2023, the eurozone now stands at around 4%. Confident in its
monetary policy and its ability to bring rates back to around 2%, 2024 holds promise, with analysts
forecasting a potential rate cut starting in the summer of 2024.
Market Performance
Hotels recorded outstanding performances in 2023, with a RevPAR of 178€ in inner Paris (+35.7% vs
2019) and 61€ in Greater Paris (+7.5% vs 2019). Operational performances were mainly driven by a
strong ADR (226€ for inner Paris and 89€ for Greater Paris) while occupancy rates reached 78.9% in
inner Paris and 68.5% in Greater Paris, representing a decrease of -1.1 and -5.6 percentage points
compared to 2019.
Supply Outlook
In 2023, the hotel supply increased by 40 properties (newly opened and renovated properties),
adding approximately 4,000 rooms, most of which opened in the first half of the year. This included
primarily midscale to upper-upscale properties in central Paris and the periphery, but also highly
expected highend assets such as the Domaine de la Reine Margot MGallery, Maison Delano Paris and
Le Grand Mazarin by Maisons Pariente.
Demand Outlook
During 2023, Greater Paris pursued its recovery in terms of demand, recording an increase of
approximately 10% in the number of hotel arrivals compared to the previous year, but a decrease of
around 5.0% compared to 2019. It is anticipated that 2024 will accelerate this trend, allowing Paris to
regain pre-COVID levels of visitors, notably due to the summer period and the hosting of the Olympic
Games.
