Paris Olympics 2024 - not as lucrative for the hospitality sector as we thought? 🤔
Over the weekend, I came across an interesting Le Monde article that shed some light on an unexpected turn in the Paris hospitality market as we edge closer to the Olympic Games in July/August 2024.
Yes, you've heard it everywhere.
There's been quite some euphoria among hoteliers, Airbnb hosts, and investors when it comes to investment returns during the Olympic Games.
Incredible rate projections of €1,000 or even €2,000 per night per room.
I must admit, I've definitely been a part of it.
Yet, the reality has taken a surprising twist. 😱
The article states that average hotel prices have seen a significant reduction, from €759 to just €522 per night. 😥 That's a decrease of more than 25%, even though it stays well above the usual nightly rate.
This shift has been attributed to sports federations cancelling their pre-booked accommodations, thus increasing market supply.
On top of that, Airbnb has witnessed an unprecedented surge in listings, further driving down prices.
→ This scenario mirrors the trends observed during the 2012 London Olympics, suggesting a pattern that might become the norm for future global events.
What does it mean for operators like us and our investors? 🤔
👉 Now is definitely a good moment to reconsider our pricing strategy and especially our expectations for the Olympic Games.
👉 When evaluating real estate investments, do not overestimate the potential impact of large-scale events. Take a more conservative approach.
👉 Staying conservative could lead to a pleasant surprise in the end 😉
Read the article here 👇: https://lnkd.in/exJsqQGV
#Paris2024 #HospitalityIndustry
