Between 2010 and 2020, the face of the luxury market in Paris fundamentally changed. In 2010, the small group of the most exclusive hotels in Paris had relatively uniform performance. The difference in REVPAR between the first and last hotels in the sample was barely a hundred euros. Between 2010 and 2019, openings and renovation projects doubled the number of rooms and marked a renewal in the history of luxury hotels in Paris.
Every time a new prestigious hotel opens, I am asked about the returns earned by investors seeking the Palace distinction in Paris despite the doubling of Palace supply in the city. In order to answer this legitimate interrogation, I start by explaining the profile of these investors (private fortunes mostly from Asia and the Middle East),