On the last 12 months luxury hotels in Paris achieved a +15% increase in RevPAR, this great performance is the result of strong growth of the luxury guests segment and highlights a shortage of inventory on this market. Ideally located, the ambitious Fouquet's Barrière banks on making his way among the 6 Parisian "Palaces"

Parisian luxury hotel performance until September 2006 – Last 12 cumulated months

The new jewel of the Lucien Barrère Group, Fouquet's Barrière, will open its gates next November 3^rd in Paris. Just where Avenue Georges V crosses the Champs Elysées, the luxury hotel will offer its 65 rooms and 42 suites.

The Fouquet's Barrière enters a market that is in a strong growth period. The occupancy rate at Parisian Palaces is in fine shape, rising 8 points over the last 12 months while RevPAR progression nearly achieved a +15% evolution. This performance largely surpasses the upscale market results that show +8.7% growth in the RevPAR for the same period in Paris.

Occupancy having slowed down after September 11 and during the Iraq war, the luxury market in Paris is now recording a marked revival as occupancy rate and average daily rate increase simultaneously. Since the recovery began in 2004, foreign clientele have made a come back.

Regarding to its performance, Paris has no cause to be jealous of its major international rivals such as New York or London. The city uses its central location in Western Europe and its excellent international brand image to the fullest.

Occupancy Rate (%) of the luxury hotels in Paris for the last 12 months

Source: MKG Consulting Database – official supplier to hotel chains – October 2006

Room for more on Paris's luxury hotel market

The excellent results of this market highlight a strong demand for luxury services. In the last 12 months MKG Consulting never recorded any real slump in occupancy level. In fact, the luxury hotel supply in Paris represents a little bit more than 1,000 rooms in 6 hotels, while New York or London are graced with a much larger room supply in the same market. The Parisian real-estate market characteristics, the impossibility of building vertically, added to the restrictions imposed for converting or renovating historical buildings explain the city's limited supply on this market.

Georges Panayotis, CEO and founder of MKG Consulting, considers the Parisian luxury hotel market can easily support the arrival of the two palaces scheduled to open soon: Fouquet's Barrière and the Shangri-La, which is to open in 2008.