Paris hospitality market represents  in 2006 1459 hotels , among them 1150 are in the 2 and 3 star categories, with an average capacity of 52 rooms. Three-star hotels form the largest category (40%of number of bedrooms), followed by two-star hotels(38%). The upgrade in Parisian hotel categories, evident since 1990, continues in 2006.

According to KPMG, this market is constrained by limited real estate opportunities ( high prices, scarce available location…). As a result, these constraints protect the market which remains capital attractive and guarantee the investment profitability.

2006 is milestoned by the opening in the center of Paris of the Hôtel Fouquet’s Barrières (4 stars Luxe, 107 rooms) near the “Champs Elysées”

In term of performance, according to the KPMG report, the occupation rates in 2006 are per category :
2 stars : 80, 8% ( and 79,1% in 2005)
3 stars : 76.7, % ( and 71,6% in 2005)
4 stars : 73,6% ( and 69,3% in 2005)

These results give evidence of the Parisian market stability. During the 5 last years, the Gross Operating Profit remained at around 40% in the 2 and 3 stars hotels and ensure a good and permanent cash flow level.

In 2006, the 25 hotels managed by Paris Honotel reached an occupation rate of 86% and a turnover growth of 6% at euros 37,9 millions.