France, the world's leading tourist destination, attracts more than 90 million international visitors each year. This enthusiasm places hotel real estate at the heart of the country’s economic and real estate stakes. But how is this market structured across regions? What opportunities exist for investors and independent agents?
Major Tourist Attraction Areas
Certain regions concentrate a large share of hotel activity due to their tourist appeal:
Paris and the Île-de-France Region
As a cultural, economic, and tourist capital, Paris consistently attracts an international clientele. Île-de-France is the driving force of the hotel market, particularly in the high-end and business segments. Major events (2024 Olympics, trade shows) are boosting demand.
The French Riviera
Nice, Cannes, Antibes... these iconic cities combine luxury, the sea, and a favorable climate. The market here is highly competitive, with boutique hotels and palaces enjoying strong profitability during peak season.
Major Regional Cities
Lyon, Marseille, Bordeaux, Lille, and Nantes benefit from mixed tourism (business, conventions, city breaks). Their accessibility by high-speed train (TGV) and vibrant cultural scenes work in their favor.
Mountain Resorts
Chamonix, Courchevel, Megève, and resorts in the Pyrenees attract many tourists in winter, but increasingly also in summer. The diversification of activities allows for four-season operations.
Seaside Resorts
From Brittany to the Basque Coast, coastal towns attract family and international clients. Activity is highly seasonal but profitable, especially for mid-sized hotels and tourist residences.
Overview of Hotel Asset Types
The French hotel market includes various types of assets, each with its own specific operational and investment characteristics.
Independent Hotels
Often family-run, they still dominate the hotel landscape in the provinces. These establishments can offer great opportunities for repositioning or upgrading but require support with management and compliance standards.
Hotel Chains
Groups like Accor, B&B, Marriott, or Ibis. They offer streamlined management, strong visibility, and recognized standards. They attract investors looking for stability.
Aparthotels and Tourist Residences
Rapidly growing, these hybrid accommodations appeal to both tourists and professionals on extended stays. They require less daily management, but location is key.
Hostels and Lifestyle Hotels
A rising trend, especially in major cities and youth destinations. Original concepts, friendly atmospheres, digital services... this model attracts young adults and short-stay travelers.
Luxury Hotels and Palaces
This is a very specific market with limited supply, high prestige, and strong profitability potential. It mainly attracts experienced investors, often from abroad.
A Sector in Full Recovery and Transformation
After the shock of Covid-19, the hotel market rebounded in 2023. The figures speak for themselves:
- Occupancy rate: 65 to 70% on average, with peaks at 80% in tourist areas.
- RevPAR (revenue per available room): Up by 5 to 10% depending on the region.
- Transaction amounts: Nearly €2.7 billion in 2024, driven by 4-star hotels and above.
- Average holding period of a hotel asset: Between 7 and 10 years.
This recovery is accompanied by new long-term trends: - Rise in environmental requirements: establishments must invest to improve energy performance and obtain certifications (Green Key, Eco-label…).
- Digitalization of services: automated check-in, home automation in rooms, optimized management via specialized software.
- Growing interest from international investors: funds, family offices, foreign REITs target prime assets or those with high potential.
Challenges in the Hotel Market
The sector is not without obstacles, and certain barriers must be considered in any investment or sales strategy.
Labor Shortage
The hospitality industry struggles to recruit, which complicates the management of establishments, particularly in rural areas or independent hotels.
Increasing Regulation
Accessibility, safety, energy standards: constraints are tightening, imposing often costly but necessary renovations to stay competitive.
The Energy Renovation Challenge
Old buildings, which are common in the hotel industry, must adapt to new standards (DPE, energy sieves), risking a loss of value or decreased profitability.
Competition from Rental Platforms
Airbnb, Abritel, and other platforms are disrupting the traditional hotel model, especially in tourist cities. Differentiation through service and experience is becoming essential.
Regional Opportunities in the Hotel Sector
Each region presents specific challenges and windows of opportunity:
Region | Key Strengths | Points of Caution |
Paris / Île-de-France | International demand, stable profitability | High entry prices, strict regulation |
French Riviera | Strong high-end seasonality | High operating costs |
Major Cities | Mix of tourism / business | Risk of saturation in certain segments |
Mountains | Winter + summer appeal | Seasonal operations, renovation needed |
Coastal Areas | Seasonal profitability | Dependence on the summer calendar |
Regional Analysis: Where to Invest in a Hotel in 2025?
Île-de-France
Île-de-France attracts a steady flow of international tourists and has a high concentration of high-end establishments, supported by the appeal of the 2024 Olympics. However, entry prices are very high, and strict regulations along with fierce competition make it challenging for new investors to access the market.
PACA / French Riviera
The PACA region and the French Riviera offer high profitability, especially in high season, due to an international high-end clientele. Luxury hotels are in high demand. However, the marked seasonality and high management costs may affect profitability during the off-season.
Major Regional Cities
Major regional cities benefit from a mix of tourism and business, with good accessibility via the TGV and airports. However, certain segments, such as 3-star hotels, are saturated, and land scarcity makes it difficult to establish new establishments.
Mountain Area
Mountain areas offer attractive seasonal profitability, especially in winter, and the four-season appeal is growing. However, activity remains concentrated over a few months, and investments for renovations and compliance with standards can be high.
Key Takeaways from the Hotel Real Estate Sector
The hotel market in France remains a pillar of commercial real estate, with great profitability prospects, especially in regions with strong tourist appeal.
If you are considering investing in a hotel, aparthotel, or tourist establishment, several elements should be carefully studied:
- Location, a true lever for visitor traffic,
- The type of asset and its target clientele,
- Growth potential, especially through renovation or repositioning.
In 2025, succeeding in a hotel project also means anticipating new expectations: sustainability, digitalization, and quality customer experience.
To go further or receive tailored support, feel free to contact one of our specialized advisors in the sale of businesses and commercial properties. They will guide you toward the best opportunities in the hotel market.
Author:
Bernard Schustermann – Head of the Retail & Business Division
With 20 years of experience in the real estate sector and dedicated expertise in the Retail and Business division, my goal is to share practical information and in-depth analysis to help every professional make the best decisions for their real estate projects. Because a well-thought-out project is a successful one.
