Paris luxury hotels capacity to increase by 70% in the next 2 years
The French branch of Jones Lang Lasalle Hotels predicts that the capacity of luxury hotels in Paris will increase by 70% in the next two years, from the current capacity of 1150 rooms. The major players of palace luxury hotels currently in Paris are George V, Ritz, Plaza Athenee, Le Bristol, Fouquet’s, Le Crillon, Le Meurice. Of the existing hotels, only some of them have resorted to improvements ahead of the openings of the new competing luxury hotels: The Plaza Athenee which renovated earlier this year most of its rooms and opened an impressive Dior Institute SPA and the Le Bristol which inaugurated a new wing with brand new rooms and a new Michelin starred restaurant.
The new comers include Le Royal Monceau and Shangri La, both due to open late this year. Le Royal Monceau is a former luxury hotel which has undergone a major renovation during the past five years. The hotel, which is owned by Qatari Diar will be managed by the Raffles Hotels. Shangri La which is owned by the Kuok family from Hong Kong is a newly developed building close to the Arch of Triumph, in the heart of Paris.
2011 will see the arrival of the ultra luxury Mandarin Oriental, wholly owned and managed by the Mandarin Oriental Group. The hotel is a former residential building which has undergone a major transformation. The interior design is signed by French renowned architect Sybille de Margerie. Without giving away too much information, Margerie said the design will be drawn on haute couture and romanticism, inspired by legendary Parisian shopping street Fabourg Saint Honore where the hotel is situated. The top suites of the hotel will be priced at up to EUR 15.000 per night. In 2012, the most important opening will be the Peninsula Hotel which is owned by Qatari Diar and which will be managed by Hong Kong based Peninsula Hotels. The hotel will be situated on Avenue Kleber, steps from Champs Elysee and the Arc de Triomphe.
The Parisian luxury hotels have not been spared by the international crisis, the average nightly rack rate dropped from EUR 830 to EUR 750 in 2009 and the average occupancy rate dropped by 10% in 2009 to 69% , compared to 2008. However, the new luxury hotel openigs will most likely benefit from the growing number of Chinese and Indian travellers. Boston Consulting Group estimated that the number of billionaires grew by 14% in 2009 compared to the previous year.