Olympic Games Fails To Boost Hotels in Paris

The Paris 2024 Olympic Games are now just thre months away, but the news from the hospitality industry from the City of Romance is not so encouraging. There has been a slump in hotel tariffs, after going up briefly in the last few months. The hotel industry of Paris expects a windfall gain as the city puts finishing touches for the mega sporting event. The Olympics begin in the French capital on July 26 and continues through August 11, 2024.

Data from the hotel market analyst, Lighthouse, shows a continuous reduction in the room rates from an average of over €800 (£689) last September to below €500 (£431) currently, The Independent reported.

In the last one month, rates for three-star properties during the Olympics have dropped by 10 per cent. Four-star hotels have fallen by 8 per cent in the  same period, Five-star luxury properties have bucked the trend, though even these properties are merely holding prices up. But even here, prices are down by 6 per cent for some key properties.

A spokesperson for Lighthouse said: “Current market occupancy rates continue to hover around 50 per cent, as they have done for some time.” This clearly shows that there is litle to cheer as the Olympics near.

While travel industry insiders expected shortage of hotel rooms during the games, The Independent revealed that top tourism officials in Paris expect hotel occupancy to be between 60 and 70 per cent during the Games.

In July 2023, the average occupancy of hotels in Paris was 91 per cent. Paris has a total of about 1.60 lakh hotel rooms and the tourism department is confident of meeting a late surge in demand.

One three-star property whose prices are being tracked by The Independent, the New Hotel St-Lazare, is currently pricing double rooms on the opening night of the Games for €213 (£184), about twice the usual rate – and the same as one month ago.