Experts: Paris hotel sector may recover sooner than predicted
The hotel business is still feeling the effects of the pandemic. Not only small provincial hotels suffered as a result of the lockdown, but also international chains. However, now experts observe good dynamics of recovery, especially in cities, which used to be popular among tourists. For example, the hotel sector in Paris has been growing steadily for more than 12 months.
The company conducted an analysis of the market in the French capital. It turned out that the local hotel business has been developing since last June. One of the important factors of success here is the strong support of the sector by the government. In addition, once the wave of disease decreased, travelers remembered their favorite destinations and the number of tourists in Paris has increased significantly. The demand for hotels is on the rise, and with it, so is investor interest in the segment.
Initially the restoration of the hotel sector in Paris was due to domestic tourists and visitors from neighboring countries. Now the city is gradually increasing the number of various major events, festivals, which attract travelers from more countries and other continents.
Paris has long been one of the leading tourist destinations in Europe, and its popularity is actively growing after the pandemic. And for the hotel business it is not only the guests that matter, but also investors. The latter are also gradually returning to the market, there are new big companies. The positive dynamics allows analysts to assert that the recovery of the local sector will be faster than previously expected.
A jump in demand for hotels was recorded last summer, due to which the revenue from free rooms in Paris for 2021 increased by 50% of the figures for 2019. For comparison, the results in the hotel sector in Amsterdam show an increase of 20%, and in Brussels – 30%.
Experts expect an increase in demand for hotels in 2023, when Paris will host the Rugby Championship. In addition, in 2024 the Olympic Games are planned. Major events are always a good growth factor for the hotel business, and they also encourage investments from investors. Especially since Paris has always been attractive to businessmen.
Hotel prices in the French capital have reached record levels, with the dynamics not affected by strikes and conflicts that took place in the city in 2019. Experts praise the prospects for the local sector, but its recovery is affected by global processes. The geopolitical conflict in Europe, rising inflation and a slowing economy may become constraining factors for the development of the hotel business. In addition, the problem with salaries in France is still acute, and it is possible that its revision may cause discontent on the part of the population.