With the Paris 2024 Olympic Games just around the corner, the predicted slump in hotel rates has been confirmed. Lighthouse, a hotel market analyst, has reported a steady decline in nightly rates since last September, with the average rate now below €500. Three-star properties have seen a particularly sharp drop of 9% in the last 30 days, while four-star hotels have fallen by 8%.
Despite the overall decline, five-star luxury hotels have been more resilient, with rates holding up slightly better and falling by only 6%. However, current occupancy rates remain around 50%, and top tourism officials in Paris expect occupancy to be between 60 and 70% during the Games, significantly lower than the 91% occupancy rate in July 2023.
Christophe Decloux, director-general for tourism in the Paris Region, has acknowledged the need to meet customer demand, stating that London 2012 experienced a similar situation where hotel prices were initially high but had to be lowered to match demand. Overall, hotel rates in Paris during the Olympics remain elevated compared to pre-pandemic levels, with the most expensive date being August 4, 2024, where a five-star hotel room is averaging €1,566 per night.
