The 2024 Summer Olympics captivated the world with its thrilling sportsmanship and propelled Paris’s hotel industry to unprecedented financial heights. According to data released by CoStar, a premier real estate market insights and analytics provider, Paris experienced a monumental surge in hotel room rates and revenue during the event, breaking multiple records and setting new benchmarks in the global hospitality sector.

An Unprecedented Surge in Hotel Room Rates

The Olympic Games, held from July 26 to August 11, 2024, catapulted Paris’s average daily rate (ADR) to an all-time high, peaking at €876.26 on the opening night. This staggering figure marked a significant leap from Paris’s previous ADR record of €622, set in June 2023. For four consecutive nights following the opening ceremony, room rates soared above €800, maintaining a stronghold above €700 for the remainder of the Olympic period.

The surge was not limited to the central Paris area. The ripple effect extended to the entire Île-de-France region, where ADR peaked at €281.90 on the night of the opening ceremony, reflecting a 133% year-over-year increase. This surge demonstrates the widespread impact of the Olympics, drawing a massive influx of tourists, athletes, and media from around the globe.

Record-breaking revenue per Available Room (RevPAR)

The financial windfall for Parisian hotels did not stop at ADR. Revenue per available room (RevPAR), a key performance metric in the hotel industry, also shattered previous records. On the night of the opening ceremony, RevPAR spiked by an astonishing 179.3% to €765.85, underscoring the immense profitability generated during the Games.

Samantha Mardkhah, STR’s regional manager for Southern and Western Europe, highlighted the significance of these figures. “Paris hotels saw a year-over-year room rate increase of 141% and RevPAR growth of 200% during the Olympic event period,” Mardkhah noted. “These figures easily surpassed the growth observed during the 2012 London Olympics, marking a historic milestone for the Parisian hotel market.”

Despite the explosive growth in ADR and RevPAR, the increase in occupancy rates was more measured. Paris experienced a 24.1% year-over-year rise in occupancy, which fell short of the increases seen during past Olympic Games in other cities. Mardkhah attributed this to the displacement of “normal” demand—typical inbound international arrivals, domestic travel, and group business—overshadowed by the Olympic rush.

Paris Hotel Rates Soar to Record Highs During 2024 Olympics.

Regional Impact Beyond Paris

While Paris was the epicentre of the Olympic frenzy, the surrounding Île-de-France region also reaped substantial benefits. On August 3, the night of 28 gold medal events, the region recorded its highest daily occupancy rate of 79.7%, marking a 43.1% increase compared to the same period in the previous year.

The Olympics boosted hotel performance not only in the capital but also in other key French cities. Marseille, for example, saw its occupancy levels soar to 83%, driven by Olympic-related tourism. Lille, another major city, recorded an 82% lift in occupancy, averaging 70% during the Olympic period. This surge in occupancy fueled a 147% increase in RevPAR, showcasing the widespread economic benefits of hosting the world’s largest sporting event.

“In hindsight, the anticipated panic that Paris would be overcrowded throughout the Olympics quickly faded,” Mardkhah reflected. “Instead, the event’s influence spread to other French markets, indicating a balanced distribution of tourist influx.”

Looking Ahead to the Paralympics

With the Summer Olympics now a part of history, the focus shifts to the upcoming Paralympic Games. Paris’s hotel industry is once again preparing for a surge in demand. Current booking trends indicate an average occupancy rate of 49.7% for the Paralympics, signalling continued robust performance for the city’s hospitality sector.

As Paris basks in the afterglow of a successful Olympic event, the city’s hoteliers are already gearing up for the next wave of visitors. The unprecedented financial success of the 2024 Summer Olympics has set a new standard for global mega-events, reinforcing Paris’s status as a premier destination for international travellers and a powerhouse in the worldwide hospitality industry.

Visit CoStar Group’s official website for further insights and detailed analytics on the 2024 Summer Olympics’ impact on Paris’s hotel market.

Written by: Octavia Koo

======================================