The 5-star offer recorded an exceptional increase of +20% over a 5-year period.
Given the increase in demand and the effects of the Covid 19 pandemic, the occupancy rate will remain under pressure in the run-up to the Olympic Games. The occupancy rate achievable by each establishment will depend on its exposure to business customers, now concentrated on three days of the week instead of four, and to non-European tourists who are sensitive to the health, economic or geopolitical situation. The pressure on prices will be differentiated according to the condition of each product. Hotels that have benefited from a pre-Covid 19 windfall effect or that need renovation will be under pressure.
Given this outlook, SENTINEL HOSPITALITY is adjusting its positioning strategy in light of changes in the clientele of Paris as a destination (changes in demand) and also in light of the unprecedented increase in supply in certain geographic areas, particularly in the category positioned at more than 350 euros. Operating costs in general are subject to a strategy of stabilization against inflationary effects.
The financial package of our investors is reviewed to take into account this perspective by 2024.