Appetite for the country from both investors and tourists continues to grow, with the mid-market an area of particular interest.
The full results for the Olympics period have yet to be released, but the May to August period saw a 1% fall in terms of overnight stays, according to INSEE, the statistics institute. The report said: “Despite the Olympic Games, occupancy of collective tourist accommodation in Île-de-France was down over the entire season”.
What looks more certain is an overall economic benefit to the country, with the International Olympic Committee estimating that the Paris Games could produce a $12.2bn (€11.25bn) economic benefit within the Île-de-France region.
Beyond that, the likely impact on tourism is expected to be far wider, with the Games acting as a multi-week advert for Paris and the regions used for the event, including Bordeaux, Lyon and Marseille.
The decision by the organising committee to use prominent sites, such as the Place de la Concorde, Hôtel des Invalides, Grand Palais and Eiffel Tower to stage the different events served to showcase Paris in particular around the world.
Dimitris Mittas, COO, Global Asset Solutions and the report’s co author said: “The country must now build on this opportunity to maintain its status as a leading global travel destination, while implementing forward-thinking strategies to create a balanced and sustainable tourism ecosystem. This approach will help safeguard the sector’s growth and preserve the unique qualities that make France a top destination for travellers worldwide.”
Investment patterns by hotel star category continue to reflect previous trends, with a clear preference for mid-range hotels, particularly three- and four-star properties and the first half of the year saw an unprecedented number of single-unit transactions.
However, expectations are high for a surge in hotel portfolio deals in the latter half of 2024. The emphasis on mid-range hotels aligns with ongoing market trends and suggests a stable demand for these properties. The anticipated increase in hotel portfolio transactions indicates a potential shift towards more comprehensive investment strategies, as investors seek to capitalise on the sector’s growth.
France looks set to retain its position as the leading tourist destination on the planet and investors are eager to share in its success.
Tags: France, Dimitris Mittas, Global Asset Solutions
