The City of Light has had its share of dark spells, but terrorism has no prevented investor appetite within the city. And while it's No. 9 on Savills list, others rank it much higher as a destination for hotel investment.
Looking forward, RevPAR is forecast to grow 3.6 percent in Paris this year, with an additional 5.8 percent of growth in 2018. The city is expected to retain its strong rate this year, with €229 per night.
Paris has been able to hold onto rate due to the limited supply coming in the market, with attention focused largely on the high end. The Palace segment—the official rating above five stars—is expected to become more competitive in the medium term with the opening and re-opening of three properties by 2018, including the Hôtel de Crillon, which is due to reopen in the first half of this year after a €100-million refurbishment, under the management of Rosewood Hotels & Resorts.
After opening in Amsterdam, Kimpton is expected to open its first Paris hotel by 2020. Hilton also has its eyes on Paris. A new €23.5-million renovation will convert a row of 19th century three-story townhouses in Paris’ 14th arrondissement into the city’s second hotel in the Curio Collection. Construction of the project began towards the end of last year with the property expected to open this year. The finished hotel will have 52 guestrooms.