Already beset by difficulties, luxury hotels in the capital saw a dim view of the arrival on the market for high-end apartments rented by private benefits.
Already facing a difficult economic situation, the Parisian palaces not hide their concern about the success of the platform on which particuliersAirbnb rent between now bloom offers of luxury apartments. In the Paris region, some 50,000 deals Airbnb displays when there were only 7,000 for the whole France in 2012. And in the capital itself, it offers 400 apartments from 380 to over 500 euros per night, including forty to over 1000 euros.
“Maxime and Fanny ‘offer for 1700 euros the night an apartment, they say, belonged to Brigitte Bardot and whose terrace of 140 m2 with views breathtaking 360 degree views of Paris. With possible chauffeur services, cooks or maids, these high-end apartments are most often located near major hotels and luxury shops popular with wealthy clients.
A crisis Demand in the luxury hotel
This unexpected competition, which was believed hitherto reserved for traditional hospitality, develops when the attacks in January against Charlie Hebdo and demonstrations of support for victims who followed them have driven the Middle Eastern clientele, particularly fond of these establishments suites outsized whose prices can exceed 20,000 euros a night. US customers, another pillar of the palaces of the capital, is also less present, not to mention the fall of the Russian tourism, due to decline of the ruble, and the disaffection of Brazilians currently struggling with the economic crisis in their country .
“The industry is suffering (…). The Middle East sulking France, there is also the feeling among Americans of latent anti-Semitism in France, “says Reuters Didier le Calvez, CEO of Bristol, whose sales fell 20% in first half with an occupancy rate fell to 61.2% against 69.2% a year earlier.
Airbnb disrupts the rules
“The Paris market is going to be very hard . It would be naive to think that it will not be difficult, “he added, saying” totally unfair “competition from Airbnb, which according to him has a favorable tax and regulatory treatment. He who also heads the “prestige” of the French hotel industry federation (UMIH), intends to make proposals to the government by the end of the year so that “the rules of the game are more balanced.” François Delahaye, general manager of Plaza Athénée, for his part evokes a “real attack to taxes.”
This analysis is disputed by the responsible Airbnb France, which points out that the rental market is private organized in France, especially since the passing of the law that allows Alur including an individual to rent the principal residence up to four months a year. “The ultra high end with rooms above 1000 euros the night only a few dozen ads only,” says Reuters Nicolas Ferrary, director of France Airbnb. “It’s totally different from the premium service of a palace,” he said.
“It is clear that some of the customers leave the palaces” José Silva , general manager of Four Seasons George V
The head of George V for its part considers that the sector must be prepared to see part of its future growth captured by these platforms, which are destined to multiply. Already, other sites like Collectionist, offer for lease, on the model of Airbnb, prestigious apartments belonging to individuals. “It is clear that part of the customer, especially family, will leave the palaces,” said José Silva, general manager of the Four Seasons George V and Regional Vice President of Four Seasons Geneva and Lisbon. The palace, which is among the most famous in the world could, he eventually lose about 10% of its customers. “But at the same time, wealth and global demand will grow and the hotels must continue to offer a radically different experience,” he added.
In Paris, the world tourist destination, the economic situation remains difficult for the moment to these exceptional hotels. At the Plaza Athénée, “the first part of the year did not go well,” says François Delahaye who did not hesitate to lower by 20% the price of some rooms in the pit of winter. “But June was very good,” he observed, saying enjoy the work of its recent renovation, which in addition to the 80 existing 20 suites, a total of 208 keys, allowed the hotel to increase its average room rates in 1180 euros, 1030 euros against before.
The George V, who claims as a largely European clientele Bristol, saw the decline in occupancy rate limited to 5 % over the first six months (66%) thanks to a recovery in traffic in the second quarter.
The palaces, more and more
But a more structural problem, linked to the sharp increase in hotel capacity, may affect the market more sustainably. While the capital had seven historical palaces in 2008, the openings of the Shangri-La, Mandarin Oriental and the Peninsula finally wake came a hitherto little rushed sector competition.
more recent phenomenon, the highly luxurious niche is invested by the “boutique hotels” as The Reserve, which opened in early 2015 and displayed with its 40 rooms and a luxury an average price – around 1,000 euros – worthy of the greatest institutions in Paris. “On demand shock adds a supply shock” comments Gwenola Donet, Director of JLL France Hotels & amp cabinet; . Hospitality
The industry fears the reopening of the Ritz and Crillon
In these circumstances, the industry fears the reopening of two mythical closed for renovation Address: that of Crillon in 2017 and above that of the Ritz, absolute icon, scheduled for late 2015. With the Cheval Blanc and its 200 rooms expected in 2018 instead of the Samaritan woman (LVMH-owned), the supply will increase by over 60% between 2008 and 2018 , according to JLL. By 2019, the occupancy rate palaces could lose eight to ten points, depending on the firm. After reaching 78% in 2008, this had dropped to 70% in 2014.
The palaces therefore extends its arms to retain customers who “like to see and be seen.” The renovations are indispensable (100 million euros of work at the Plaza last year, also at the Crillon 100 million over two years to 80 million George V provided over five years), such as “spa” always comfortable or restaurants also able to attract Parisians.
These institutions held by long-term investors like the Sultan of Brunei (Plaza), Saudi Prince Al-Walid (George V) or wealthy German family Oetker (Bristol) are assets to capital preservation. If their operating profitability may reach 30% in good times return on investment does not exceed 3% to 4%, given the huge amounts invested in real estate and in the work.
No comments:
Post a Comment