Last update: September 2024
Hospitality Real Estate Market Update in Paris and Île-de-France – 1st Half of 2024
The hospitality real estate market in Paris and Île-de-France maintained dynamic activity in the first half of 2024. Transaction volumes reached nearly €1.2 billion, involving 19 properties representing 1,754 rooms. Although the number of sold properties decreased significantly by 33% compared to H1 2023, the transaction volume dropped only 4%, thanks to four major deals accounting for nearly 80% of the total volume: Pullman Tour Eiffel, Hilton Paris Opéra, Mandarin Oriental, and Hôtel Dame des Arts.
International investors continue to play a key role, representing 69% of the capital invested, with a strong focus on the Luxury and Upper Upscale hotel categories, which together captured 81% of the total investment volume.
While hotel demand was disrupted due to the upcoming Paris 2024 Olympic Games, stabilization is expected for the second half of the year, with a gradual recovery anticipated in 2025. In Q1 2024, hotels in Greater Paris experienced a 1.9% increase in RevPAR compared to last year (+2.4% in Inner Paris), but Q2 2024 saw a 6.7% drop due to lower visitation and supply growth, with Inner Paris recording a 3.9% decline.
The hotel investment market in Paris remains attractive, supported by growing liquidity and stable yields. The sector continues to present compelling opportunities for investors looking to position themselves in prime or opportunistic assets in the Île-de-France region.
