Dr. PHILIP GORDON, Ph.D
insiders guide
Paris Hotel market study
100 Hotels included from the 20 Arrondissements throughout Paris. A comprehensive real estate analysis of current values, market trends and investor insights for the City of Lights.
1st Edition
Insiders Guide
Paris Hotel Market Study Dr. Philip Gordon, Ph.D October, 2013 Paris, France
Blue Matrix Publications
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Insiders Guide: Paris Hotel Market Study Copyright Š 2013, Dr. Philip Gordon, Ph.D All Rights Reserved USA: 2995 Woodside Rd. Suite 400 Woodside, CA 94062 France: 2 rue Despaty Voisines, FR 89260 ISBN-13: 978-1484039595 ISBN-10: 1484039599 www.MDG-Consultants.com
Printed in the United States of America
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Dedicated to Jaike and Matthew: Indeed, there is something quite unique about the “City of Lights�. Our life journey began with this magical place. -Forever, Papa
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Acknowledgements
Acknowledgements
My sincere gratitude and appreciation to the personnel at some of the
libraries and archives where I consulted texts and documents in United States, France and Great Britain, who were particularly helpful in facilitating my access to relevant information. In this regard, I would like to single out the libraries at the Centre d’etudes Diplomatiques et Strategiques, Paris, France (PhD – 2012), Johns Hopkins University in Baltimore, Maryland (MS1979) and Sciences Po, l’institut d’études politiques (IEP) de Paris. This acknowledges that a book on this topic would have been impractical for a sole person to research efficiently, but with the emergence of the Internet and the proliferation of material available through it, has allowed me to obtain texts and documents from governments, academic institutions, publications and libraries. Occasionally, search results yielded information that proved relevant and valuable from sources that one would not normally associate with the specific topics or locations being examined; this only broadened my perceptions of the issues at hand, and I extend my gratitude to people I do not know but who brought the technology to market where it could be utilized for this project. Finally, I would like to thank my family and friends for the encouragement they lent in connection with my preparation of this book. Especially my wife, Anne-Lyse and my sons Jaike and Matthew, who were patient with me as it took time away from them and my business to do this research. I am very grateful for their presence and understanding.
Metro sign at Saint Germain de Pres Cathedral
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Table of Contents
Table of Contents
Acknowledgements Introduction
v 1
Arrondissements I II III IV V VI VII VIII IX X XI XII XIII XIV XV XVI XVII XVIII XIX XX
31 39 44 51 55 65 74 82 99 112 121 127 133 139 147 154 164 177 182 188
Photo Credits
193
Photo Locations
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Index
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Read More Publications
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Stryge Chimera, overlooking the skyline of Paris from Notre Dame Cathedral
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Introduction
Introduction
At first glance, the Forbes Traveler “60-Most Visited Attractions List” confirms several tourist industry truisms: A) People love to travel, but they prefer to stick within their own borders. B) Wherever Mickey Mouse goes, he conquers. C) “Paris is the unofficial cultural theme park of the world…”
- Forbes Magazine Table 1: Forbes Top 60 Worldwide Tourist Destinations – in France World Ranking
Site
Visitors / Million / Year
Area
9
Notre Dame
12.0
4th
10
Disneyland
10.6
suburbs
14
Montmartre
8.0
18th
15
Louvre
7.5
1st
18
Eiffel Tower
6.7
7th
25
Pompidou Center
5.1
3rd
45
Palace Versailles
3.45
56
Museum D’Orsay
2.5
12 million visitors a year: Notre Dame Cathedral
suburbs 6th
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Insiders Guide Paris Hotel Market Study
Table 5: Firms in the Tourism Sector Number of Firms
Turnover
(Euro millions)
Value Added
(Euro millions)
hotels
27,713
16,200
7,881
other tourist accommodation
12,150
4,523
1,697
108,340
28,862
13,989
43,909
5,237
2,644
4,317
11,969
1,902
196,429
66,791
28,113
restaurants cafes travel agencies total
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Introduction
Tourist Consumption by Region Tourism consumption: Euro 108.1 billion including share directly attributable to region: Euro 92.4 billion (French: 59%, foreigners: 41%) The area of each circle is proportional to tourism consumption in the region.
Foreign French
The numbers indicate the regional proportion of tourism consumption of the French total.
France
London
International Boundary 0
Paris
1.2
2.0
2.6
1.5
15.5
5.9 3.0
3.3
100 Miles
1.2
1.5
5.5
100 Kilometers 50
0
3.0
3.0
50
1.1
2.6
2.7 10.7
6.3 4.9
7.4
13.3
2.0
Tourism revenue per inhabitant (â&#x201A;Ź) > 2000 between 1500 and 2000 between 1000 and 1500 < 1000
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Introduction
International Hotel Performance Data: Occupancy 2007 (%)
Avg. Room rate RevPar Change 2007 (USD) Change (%)
2007 (USD) Change (%)
Asia pacific (HotelBenchMark sample represents approx. 1,000 hotels across the region) Auckland
68.9
6.7
105
24.1
73
32.4
Beijing
73.5
2.2
123
Hong Kong
83.7
0.3
170
10.9
91
13.3
14.8
142
15.2
Singapore
88.1
1.1
166
32.0
146
33.5
Sydney
80.2
9.7
170
18.9
136
30.4
Tokyo
71.8
-0.9
233
11.6
167
10.6
Caribbean & Latin America (HotelBenchMark sample represents approx. 120 hotels across the region) Buenos Aires
61.2
3.8
128
11.9
78
16.1
Mexico City
61.0
4.4
146
6.5
89
11.2
Quito
64.9
-9.2
100
14.8
65
4.2
Sau Paulo
62.8
11.0
99
29.0
62
43.2
Santiago
77.9
21.1
104
6.6
81
32.2
Europe (HotelBenchMark sample represents approx. 3,500 hotels across the region) Amsterdam
81.8
-1.2
181
10.1
148
8.8
Berlin Brussels
70.8
5.6
103
-26.3
73
-22.2
61.2
-0.8
118
8.5
72
7.6
London
87.6
-1.6
273
13.1
239
11.3
Madrid
61.2
-2.2
150
8.1
92
5.7
Paris
80.6
3.9
297
11.4
239
15.8
Rome
76.8
-7.4
229
9.7
176
1.5
Vienna
78.1
-0.5
131
14.6
102
14.0
Middle East (HotelBenchMark sample represents approx. 500 hotels across the region) Cairo
69.9
-6.0
120
17.6
84
10.5
Dubai
79.0
6.0
182
12.8
144
19.5
Jerusalem
72.4
8.7
158
10.1
114
19.6
Riyadh
71.1
10.3
182
24.8
130
37.7
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The courtyard of the Louvre with the Arc de Triomphe du Carrousel, the beginnings of Jardin des Tuileries and a view of the Eiffel Tower in the distance.
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Arrondissement vvv
Central Paris © Chris Waits / Wikimedia Commons cba
Well connected by métro and bus. Tends to be pricey and very busy. Not a great place if you have a car. Châtelet is very congested, but very central. Once chic and trendy around Les Halles, now a bit overrun and seedy at night. The park Palais-Royal is a bastion of undisturbed Parisian elegance.
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Insiders Guide Paris Hotel Market Study
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Bois de Vincennes
Rue de Richelieu
1st Arrondissement
1
1st Arrondissement Real Estate Overview Although one of the smallest of Paris´s 20 districts, the 1st is densely packed with points of interest. Running from the Seine at Place de Châtelet north along the Blvd. de Sébastopol to the rue Etienne Marcel, the 1st encompasses the Place des Victoires and Place de Vendôme, the Louvre and the Jardin des Tuileries and the Orangerie, the Palais royal and its garden, the Musée des Arts Décoratifs, the Forum des Halles and the Eglise Saint Eustache, as well as the eastern part of the rue St. Honoré and the avenue de l´Opéra until the rue des Petits Champs.
Developments Les Halles Project: The neighborhood of Les Halles will once again find its dignity and will assert its vocation as one an important neighborhood of the center of Paris. It will carry the image and the myth of the capital in continuity and harmony with the history of Paris, and it will reconciliate the natural life of the center of Paris with the happiness of the inhabitants. It will improve the day to day life of those that live in Les Halles by offering new spaces for their enjoyment as well as for their needs, guaranteeing their tranquility, their comfort and their security through the clarity of the definition of streets,
squares and gardens. The existing garden, being too disorderly, will be replaced with a garden with a simplicity inherited from the great traditions of the archetypal Paris gardens: Palais Royal, Tuileries. This re-design will allow the garden to open to the adjacent streets and squares.
Three and Four Star Hotels Hotel Castille Paris MMM Paris, 33-37, rue Cambon
Nestled in the exclusive 1st arrondissement amidst the haute couture houses and boutiques of Paris fashion district, the Castille Paris hotel is located in the rue Cambon, a street famous for having housed the couturier Chanel since 1910. Hotel Burgundy MMM Paris, 8, rue Duphot
The Burgundy hotel lies in the very heart of Paris between Madeleine, Opéra and Concorde. This charming property has a wonderful location, which will enable you to discover one of the most beautiful parts of the city. Hotel Du Continent MMM Paris, 30, rue du Mont Thabor
The Hotel Du Continent is located in the very heart of Paris, between the Concorde Square and the Louvre Museum, close to the Vendôme square, the Tuileries gardens, the Opéra House and the Champs33
View from the Forum des Halles to the north
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Arrondissement vvv
Central Commercial Paris Sentier is the core of Paris´ garment district. You may find unusual places to live here but it´s more the exception than the rule. The parts near the Opéra and Madeleine are very high rent districts and not especially inviting as far as daily Parisian neighborhood life. The streets between Les Halles and the Grands Boulevards are some of the oldest, truly Parisian and enchanting you´ll find. The rue Montorgeuil, the oldest market street in Paris, is worth a detour. Also contains the fashion chic Place des Victoires.
© Jean-Christophe Benoist / Wikimedia Commons cba
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Insiders Guide Paris Hotel Market Study
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2nd Arrondissement
2
2nd Arrondissement Real Estate Overview The increase in prices is always sustained in the 1st, due to the foreign clientele, that now represents close to the half of the purchasers. A beautiful address here is worth between 11,500 and 12,000 €/m2. Only the apartment with defects (needs a new kitchen, 6th floor without elevator, etc.) sell less quickly. The 2nd is more stabilized. In the Montorgueil village, the boom is especially for rental thanks to the invasion of the young working professionals just graduated from college. In the 2nd the m2 prices are between 8,500 and 9,300 €/m2. The good area for investment here? Aim for the numerous streets with works in the precinct. One mentions the Rue Montmartre, where the prices are affordable: 1st: +14.5% in one year, 2nd: -4.5% in one year. Hotel Edouard VII Opéra MMM Paris, 39, avenue de l’Opéra
Located right in the center of Paris, the stylishly renovated Edouard VII Hotel is a family run gem, exhaling a typical Parisian charm and recalling a historic ambience. Being the only hotel on the impressive Avenue de l’Opéra, its strategic location is the ideal choice for leisure and business travellers alike.
Hotel Best Western L’Horset Opéra MMM Paris, 18, rue d’Antin
Best Western l’Horset Opéra Hotel enjoys an excellent location in central Paris, in close proximity to famous Paris attractions such as the Opéra Garnierand and the Louvre. 54 beautifully decorated rooms will ensure a comfortable stay in romantic Paris. Hotel Louvre Marsollier Opéra MMM Paris, 13 rue Marsollier
The Hotel Louvre Marsollier Opéra is located in the heart of historical Paris, close to the business district, the department stores and the most beautiful Parisian monuments such as the Louvre, the Opéra house, the Orsay Museum, Notre Dame Cathedral, Place de la Concorde, and the Champs-Élysées. Hotel Cyrnos MMM Paris, 154, rue Montmartre
The Cyrnos is a small family run 3 Star hotel situated in the heart of Paris: 10 minutes walk from the Louvre, Opéra, Notre Dame, Marais, Les Halles. Hotel Ascot Opéra MMM Paris, 2, rue Monsigny
The Ascot Opéra Hotel is a cosy, fully air conditioned property lying in the very heart of Paris, close to the most important attractions and 41
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INSIDERS PARIS HOTEL GUIDE MARKET STUDY World’s Top Vacation Hotel Destination: Forbes Magazine 18 out of the top 50 world destinations are in or around Paris! And why? There were 74 million visits to France by overseas visitors (2012) - an increase of 5 percent when compared to the previous year and an 8 percent increase in “per person” vacation spending. This just released Blue Matrix Publications book:
Insiders Guide: PARIS HOTEL: Market Study Presents up-to-date current hotel market values, development trends and investor insights for each of the (20) Paris Arrondissements. A fact-filled guide with neighborhood desrcriptions, maps, and complete Hotel descriptions (3 Star and above), including amenities and services for each property.
Including: • • • • •
Market Conditions and Trends for the (20) Arrondisements Sales Figures and Acquisition Forecasts Probable “Hot” development areas identified for Investors Location Maps with Key Features Neighborhood Images
Also: • • • •
Number of Hotels (by Star Category) Numbers of Rooms Occupancy Rates Typical Room Prices
And much more! Also Available soon:
Insiders Guide: LONDON HOTEL: Market Study Dr. Philip Gordon, Ph.D was awarded his doctorate (with high honors) from the Centre d’Études Diplomatiques et Stratégiques (CEDS) Paris, France and graduated with his masters while on a full fellowship from Johns Hopkins University, Baltimore, Maryland. He currently lives in Burgundy, France with his wife and two sons.
Paris Hotel: Insiders Guide: Market ISBN-13: 978-1484039595 ISBN-10: 1484039599