Buying a hotel in France

The French real estate market for small hotels (up to 30 rooms) has experienced significant growth in recent years, driven by a robust tourism sector and strategic investments.

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Market Trends and Locations

In 2024, France maintained its position as the world's most visited country, welcoming over 100 million international tourists. This surge was bolstered by major events such as the Paris Olympic and Paralympic Games, the 80th anniversary of the Normandy Landings, and the reopening of Notre-Dame Cathedral. These events not only increased tourist numbers but also enhanced the demand for diverse accommodations, including boutique and small hotels. While Paris remains a focal point for hotel investments, other cities like Marseille have emerged as trendy destinations, attracting both tourists and investors. Marseille's growing popularity is evident from increased social media attention and a surge in flight bookings.

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Average Daily Rate (ADR) and Occupancy

The French hotel industry has seen a positive trajectory in key performance indicators. In 2023, the occupancy rate of hotels in France reached 66.9%, with an average daily rate (ADR) of €79.90 and a revenue per available room (RevPAR) of €53.50. The upscale segment, in particular, has led in performance improvements, with notable growth in ADR and occupancy rates.

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Transactions and Investments

The hotel investment landscape in France has been dynamic. In 2023, the tourism sector saw a 7% rise in business creation compared to 2022, with 38,700 new positions created over the past year. This growth indicates strong investor confidence and a robust market recovery post-pandemic.

Additionally, the trend of 'upscaling' has led to low room growth, as small underperforming properties either close or undergo renovations, contributing to occupancy stabilization.

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Tourism and Flight Statistics

France's tourism sector has demonstrated remarkable resilience and growth. In 2024, international tourist spending reached €71 billion, a 12% increase from the previous year.

The Paris Olympic Games alone contributed an additional €10.7 billion to the French economy.

Air travel also saw a significant uptick, with airports experiencing increased passenger numbers, reflecting the country's appeal as a top tourist destination.

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In summary, France's small hotel sector is thriving, supported by a strong tourism industry, increasing ADR, and substantial investments. While traditional urban centers like Paris continue to attract attention, emerging destinations such as Marseille offer promising opportunities for boutique hotel developments.