Greater Paris hotels recorded RevPAR of €116 in H1 2026, up 3.7% year-on-year, while hotel investment volume reached €845 million across 21 transactions covering 1,661 rooms, according to the latest Market Beat Greater Paris data for the first half of the year.

The headline investment figure needs scrutiny. A single deal, the Pullman Tour Eiffel transaction, dominates the €845 million total and materially distorts the average price per key. Strip it out, and the average price per key stands at €291,000 — broadly in line with H1 2025. Transaction counts tell a weaker story: both the number of hotels sold and the number of rooms transacted declined sharply against the prior-year period. Half of the transactions involved upper-upscale hotels.

What is happening with prime yields?

Prime yields have broadly stabilized in H1 2026, generally ranging between 4.75% and 5.25% in Paris. That range signals a more balanced investment environment and sustained appetite for core assets, according to the report.

The exception is smaller trophy assets in prime Parisian locations. Hotel Fauchon, a 54-room property in the 8th Arrondissement, illustrates the trend: competition for such rare assets remains particularly intense, and pricing is increasingly driven by private equity, family offices and real estate funds. These buyers have shown a greater willingness to accept tighter yields to secure best-in-class opportunities.

How is supply evolving?

Supply growth remains constrained by land scarcity, strict building regulations, and high construction and financing costs. Conversions of existing buildings now outpace new developments.

Recent openings confirm an upmarket shift. Le Bus Palladium, a former iconic Parisian nightclub, has been converted into a 35-room five-star hotel. Hotel Salvia, a 39-room four-star property, resulted from the merger of three hotels.

What drove the operating performance?

Greater Paris closed H1 2026 with solid operating momentum. The market reached:

• Average daily rate (ADR) of €160, flat and just below the inflation rate
• Occupancy of 73%, up 1.8 percentage points
• RevPAR of €116, up 3.7% versus H1 2025

Occupancy, not rate, delivered the growth. Operators priced conservatively, holding ADR increases below inflation, and filled the incremental rooms.

Inner Paris outperformed on rate. The intra-muros market posted RevPAR of €180, up 3.1% versus H1 2025, on an ADR of €223 (+1.8%, broadly in line with inflation) and occupancy up 1.1 points.

What happens next?

With prime yields stable between 4.75% and 5.25% and private capital still chasing trophy assets, the second half of 2026 will test whether transaction volumes recover beyond single-asset outliers like the Pullman Tour Eiffel, while operators watch whether occupancy gains can hold as ADR growth continues to lag inflation.