The hotel market is currently strong in France, particularly in Paris said Dr Alfred Fink, partner in law firm Taylor Wessing.
In the last 12 months the firm has been instrumental in the sale of one asset for about €100 million and another of €25 million, for instance.
There is considerable activity in the five-star hotel segment, Fink explained. “We also see a lot of new tourists coming in, people from the Middle East are back in Paris since last year and a lot of Asian people are coming back,” he added.
Room rates are also rising and the luxury market picked up very quickly after covid. However, on both the country’s Atlantic and Mediterranean coasts there are assets which are in need of complete refurbishment. In these locations five-star hotels are more of a rarity because businesses are in the hands of owner-operators whereas the five-star market requires an international booking platform.
Nevertheless, business hotels are also recovering, Fink said. “I think we have clearly seen that these kind of personal contact, face-to-face meetings, have picked up quickly after covid has been put aside.” “Everything is going the right direction,” he added.
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