Paris 2024 Olympics: A Triumph for Hoteliers with Impressive Performance Metrics
The Paris 2024 Olympic Games have emerged as a remarkable success, not only for the thrilling athletic competitions but also for the hotel sector’s outstanding performance. As articulated by Tom Emanuel, the Senior Director of STR, CoStar’s dedicated hotel analytics division, the forthcoming Olympic Games promise a wealth of data exemplifying exceptional hotel performance. Parisian hoteliers have demonstrated remarkable readiness, embodying the Olympic ethos of “Faster, Higher, Stronger” (Citius, Altius, Fortius) across all operational ranges.
During a recent episode of Hotel News Now’s podcast, “The Upgrade: EMEA Hospitality News,” Mr. Emanuel highlighted that throughout the 16 days of the Olympic events, the city of Paris experienced a significant year-over-year increase of 25% in occupancy rates, alongside an extraordinary 141% rise in average daily rates. He stated unequivocally, “In terms of market performance, I would describe [the games as] more magnifique than terrible.”
In terms of Revenue Per Available Room (RevPAR), the data revealed a staggering range of growth; the minimum recorded year-on-year RevPAR increase was an impressive 75%, while the maximum soared to an exceptional 311%. These figures remain outstanding, particularly considering the typical summer evacuation of Parisian locals to coastal regions and rural retreats.
Furthermore, Mr. Emanuel emphasized the adept revenue management by Parisian hotels throughout the Games, especially in light of the lack of new hotel developments in the city. Contrarily to expectations for considerable new accommodations before a mega event, Paris has maintained a stable inventory with no significant increase in supply over recent years, benefitting the existing hoteliers tremendously.
This situation stands in stark contrast to other host cities, such as Beijing during the 2008 Summer Olympics and Qatar in anticipation of the 2022 World Cup, which saw considerable hotel supply increases. This unique scenario for Paris showcases the city’s capability to efficiently host the Olympic Games while effectively utilizing its established hotel infrastructure.
In comparison to London, which hosted the 2012 Summer Olympics and serves as a relevant benchmark in terms of scale, a 2% growth in hotel supply was noted in 2011 and a 5% growth in 2012, primarily localized around event-focused neighborhoods.
Notably, luxury accommodations in Paris achieved their peak with average daily rates reaching €2,022 on the night of the opening ceremony. Accommodation rates subsequently remained above €1,700 for every night throughout the Games.
For a more in-depth understanding of Mr. Emanuel’s insights and his enthusiasm regarding the performances of prominent athletes such as swimmer Léon Marchand and judoka Teddy Riner, who each secured gold medals, one is encouraged to listen to the podcast provided. Subscriptions are available through various listening platforms.
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