February by In Extenso Tourisme, Culture & Hôtellerie in partnership with Deloitte, gathered more than 800 hospitality professionals at CNIT Forest to review the past year and assess the outlook for the hotel sector.
Despite an uncertain economic environment, the French hotel industry recorded 2% RevPAR growth in 2025, with performance remaining largely stable throughout the year before being boosted by strong demand in December. However, the national average masks significant regional differences.
Paris built on the momentum created by the 2024 Summer Olympics, delivering solid occupancy growth in 2025. Hotel occupancy reached 82%, up five points year over year, while the average daily rate slipped slightly by 1% to €239. The result was a 5% increase in RevPAR for the capital.
Elsewhere in the wider Île-de-France region, performance proved more challenging. Average rates dropped 8% to €105, influenced by the exceptionally strong Olympic year in 2024, while occupancy declined slightly to 64%, nearly ten points below pre-pandemic levels.
At the same time, the region experienced significant growth in hotel supply. Since 2022, more than 10,000 hotel rooms and serviced apartments have opened across suburban areas, alongside around 3,000 new rooms in Paris itself. With business travel still recovering slowly, the market will need time to absorb this additional capacity.
Leisure destinations lead performance
In contrast, the Côte d’Azur delivered stronger results than the capital in 2025. Hotels reported 5% growth in average rates, while occupancy edged up by 1% to 60%, producing a 6% increase in RevPAR following a 5% rise in 2024.
This performance is particularly notable given the rapid expansion of hotel supply in Nice, where room capacity has increased 9% over the past three years.
The trend reflects a broader shift toward leisure-driven hospitality across France. Coastal hotels saw RevPAR climb 6% in 2025, largely supported by a 4% increase in room rates. Renovations and the upgrading of hotel products have also helped meet rising demand for leisure and wellness stays.
Across regional France, however, the picture was more mixed. Hotels outside the main tourism hotspots recorded 2% RevPAR growth in 2025, slightly better than 2024 when performance remained flat.
Lower-tier hotels remain particularly exposed to economic pressures. Industry professionals point to the construction sector slowdown, which reduces demand for rooms from construction workers, as well as tighter corporate travel budgets.
Some regional cities nevertheless performed well thanks to leisure demand and major events. In Rennes (Britanny), an exhibition linked to a presentation of the Pinault Collection helped attract visitors, while Le Havre (Normandy) benefited from hosting the Transat Café L’Or.
Cautious outlook for 2026 as technology reshapes distribution
Looking ahead to 2026, forecasts from In Extenso remain cautiously optimistic. Forecasts do however not included the possible effects of the Gulf War on tourism demand as the conference was hosted in early February.
In Paris, industry professionals expect strong demand to continue, supported by moderate rate increases. Across Île-de-France, the main challenge will be absorbing new supply while waiting for a recovery in business travel segments. Without the Paris Air Show next year, hoteliers will focus on maintaining occupancy and stabilizing rates.
In the French Riviera, hoteliers believe there is still room for further rate growth, supported by significant investment in hotel renovations and upgrades in recent years. Regional markets are expected to remain uneven, with RevPAR projected to rise by around 1% in 2026.
The conference also addressed the broader investment and global tourism environment. Béatrice Guedj, head of research and innovation at Swiss Life Asset Managers France, noted that hospitality stocks have underperformed the Euro Stoxx 50 in recent years, partly due to a shift in investment toward defense industries. However, ongoing stock market volatility and fluctuating US interest rates are pushing investors toward European private markets, including hospitality assets.
According to Guedj, the hotel sector remains attractive because it offers strong returns and diversified strategies, combining stable “core” assets with value-add opportunities in a growth market.
A global perspective was provided by Samantha Mardkhah of STR, who noted that while global tourism growth is slowing, it remains positive, driven mainly by markets in the Eastern Hemisphere. Southern European destinations and coastal markets continue to perform strongly, although the MICE segment still lags behind 2019 levels.
Technology and distribution strategies were also key themes of the conference. Speakers including representatives from Amazon Web Services and Deloitte highlighted how artificial intelligence and digital transformation are reshaping hotel booking behavior. Future travelers may increasingly book hotel experiences based on social media imagery, with automated booking systems making reservations almost instantly.
A round-table featuring executives from Best Western France, IHG Hotels & Resorts, HRS Group and advisors from Bpifrance explored how AI could reshape hotel distribution in the coming years.
The consensus among panelists was clear: technology mastery combined with strong content and loyalty strategies will define future competitiveness, as the hospitality industry balances digital innovation with human-centered service.
Tags: In Extenso Tourisme, Culture & Hôtellerie Deloitte Hospitality Trends Conference
