Summer Games pushed room rates in Paris to record highs

The Summer Olympics drove the average daily rate (ADR) of hotels in Paris to a record high, according to data from CoStar. CoStar is a leading provider of online real estate marketplaces, information and analytics on the real estate markets.

The highest ADR was seen on opening night (Friday 26th July) at EUR876.26, with the following four nights also seeing room rates above EUR800. Room rates remained above EUR700 for the remainder of the event period. Paris’ previous nightly ADR high (EUR622) was seen in June 2023.

Revenue per available room (RevPAR) also reached a record high on the evening of the opening ceremony, rising 179.3% to EUR 765.85.

“Paris hotels saw a 141% year-on-year room rate increase and 200% RevPAR growth during the Olympic event period,” said Samantha Mardkhah, STR’s Regional Manager for Southern and Western Europe. “In comparison, ADR and RevPAR growth easily exceeded what was seen during the 2012 Olympic Games in London. At the same time, occupancy grew by 24.1% in Paris, which was a lower increase than what was produced in London. However, this was expected due to displaced ‘normal’ demand – such as inbound international arrivals, domestic travel and group travel.”

The Olympic Games also had a significant impact on the Île-de-France region. Like Paris, the region saw its highest daily occupancy level (79.7%) on the evening of 28 gold medal events (3 August, which represented a 43.1% increase year-on-year. Île-de-France’s highest ADR was recorded on opening night (+133.0% to EUR281.90), while the market’s highest RevPAR level was recorded on Thursday 1 August (+197.5% to EUR219.33).

“In hindsight, the fear that Paris would be overcrowded during the Olympics quickly dissipated, perhaps to the benefit of other French markets such as Marseille, where occupancy levels were as high as 83%,” Mardkhah said. “Lille saw an 82% increase in occupancy, averaging 70% during the Olympic period, leading to a 147% increase in RevPAR. We now look forward to the Paralympics, with hotel bookings in Paris currently averaging 49.7%.” For more information about the company and its products and services, visit www.costargroup.com.