Since the last week of August, France has been recording on average daily 8.000 Covid-19 cases (infections), among the highest stats in Europe. Most attribute the increase to the lax measures taken in the South of France at all major holiday destinations.
Some Parisian Palace ranked luxury hotels such as Ritz Paris and initially announced their re-opening on August 24, while most of the other Palace hotels indicated September 1st as their re-opening date.
Most of the key luxury feed markets for Paris including Middle East, GCC, Russia, China and the U.S. are very unlikely to return to Paris for the rest of 2020. Wealthy travellers from some other key markets such as the United Kingdom, Germany or Switzerland are also staying away from France because of mandatory quarantine on the return from France.
Among the Palace ranked hotels, La Réserve Paris was the only property which has remained opened during the entire pandemic, registering an average of 30% to 40% occupancy for of its accommodations, with the main restaurant and bar registering high capacity throughout the day with over 70% domestic / local guests. Considering the inventory of 40 rooms & suites, it makes La Réserve the best performing Palace ranked hotel in Paris.
Since re-opening early September, Park Hyatt Paris Vendome has been recording the highest accommodations occupancy with an average of 20% the main restaurant (open air courtyard terrace) has been retaining high capacity dominated by locals.
Palace ranked hotels which have re-opened but register occupancy below 10%: Crillon, Rosewood Hotels; Le Bristol, Le Meurice; Plaza Athenee, Ritz Paris. Le Meurice and Plaza Athenee are outperforming the other open Palace hotels, thanks to the rebound of their Food & Beverage but also wellness – Le Meurice has opened a brand new ultra-luxury Spa by Valmont, while Plaza Athenee operates the Dior Institut (Spa)
Palace ranked hotels which remain closed in Paris (latest update Sept. 14, 2020)
Mandarin Oriental, Paris (no re-opening date)
The Peninsula Paris (no re-opening date)
Four Seasons Hotel George V (September 22, 2020)
Hotel Lvtetia Paris (September 24, 2020)
Le Royal Monceau Raffles (no re-opening date)
Shangri-La Paris (October 1, 2020)
With Covid-19 stats unlikely to show significant improvements, alternative markets remain the only opportunity for the Palace / luxury five star hotels not to close back or not re-open at all. Luxury hotels in Paris have some of the highest fixed operational costs among all major metropolis of the world, with a protectionist and socialist policy and legislation. From December, the French Government is expected to no longer provide support for furloughs.
With more Palace ranked hotels expected to re-open in October / November 2020, the additional available inventory will only lead to a collapse – staycations and domestic travel are expected to generate minimal demand, much lower than during the summer holidays season.
In spite of the pandemic construction has been uninterrupted at both Bvlgari Hotel Paris (Avenue George V) and Cheval Blanc Paris (La Samaritaine). It remains to be seen whether aiming at Spring 2021 is realistic and feasible for the re-opening of any of the two or both luxury hotel properties.
Among the five stare luxury hotels which have re-opened in Paris are Prince de Galle (Luxury Collection), Sofitel Le Faubourg and Fauchon L’Hotel are leading the segment, yet still with occupancy rates below 20%
Other luxury five star hotels which are presently open (latest update Sept. 14, 2020)
Hotel du Louvre Unbound Collection by Hyatt
Le Narcisse Blanc (Evok Hotels)
Other luxury five star luxury hotels in Paris which remain closed (latest update Sept. 14, 2020):
Hôtel Raphael (may not even re-open this year)
InterContinental Paris – Le Grand (no re-opening date)
Barrière Le Fouquet’s (no re-opening date)
Hotel de Berri, Luxury Collection (no re-opening date)
Grand Hotel du Palais Royal (no re-opening date)
Hotel Banke Opera (no re-opening date)
W Paris (no-reopening date)
Renaissance Paris Arc de Triomphe (no re-opening date)
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