The reopening of Parisian luxury hotels may not be profitable

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If some of the palaces in the French capital are betting on opening after five and a half months of inactivity, most of these establishments have postponed theirs.

 

Deprived of foreign tourists and faced with empty reservation books, less than one out of three Parisian five-star hotels resumed their activity this summer, according to the specialized firm MKG Consulting.

 

In addition, 68% have reopened in the rest of the country and 100% on the coast.

 

Our establishments have “a societal responsibility towards the stores, cab drivers, the stores they live around them, and their suppliers” , said to AFP François Delahaye, patron of the Meurice and Plaza Athénée.

 

These two palaces that reopened Tuesday, like the Bristol and the Park Hyatt Paris-Vendôme, have a predominantly American clientele. The two properties of hotel operator Dorchester Collection will certainly “lose money, but we must play the game to revive the machine” , says Delahaye.

 

For others, such as Lutetia, which is waiting for the 24th, the doors have for the moment remained closed.

 

As for the Ritz and the Crillon, they were the first to take the plunge on August 24th.

 

For those who reopen, there is a real risk, because they will be at very low levels of attendance, 30% or 20%, which is clearly not enough to run such large ships, which offer luxury services: 24-hour room service, concierge, valet parking…” , said Vanguélis Panayotis, president of MKG.

 

All the means are thus good to try to attract in their restaurants or their spas a Parisian clientele.

 

For its part, the starred restaurant Pur du Park Hyatt (156 rooms and 300 employees), which reopens on September 16, will offer customers the opportunity to create their own 3, 6 or 8-course menu signed by chef Jean-François Rouquette.

 

We have reopened the spas, the gastronomic restaurant -Alain Ducasse- at the Plaza, which is doing well, but not the one at Le Meurice, we are waiting for the 22nd, because we didn’t have enough reservations” , explains Mr. Delahaye.

 

It should be remembered that in normal times, French and Europeans represent only 25% of the Parisian five-star clientele, three quarters of which come from the United States, Japan, China, the Middle East, Brazil or Russia.

 

This is why the establishments have also not hesitated to use the partial unemployment scheme set up by the government. At Le Meurice, for example, only 180 of the 550 employees work, with the others coming back every other week.

 

For Paris Fashion Week, the luxury giant LVMH “which booked 1,250 overnight stays, fell to 250, because they invited Americans and Chinese, who do not leave their country because of the fortnight,” also explains Mr. Delahaye. Especially since for the next Parisian fashion week, some big names have chosen to runway shows off-calendar, or even not at all, opting instead for virtual presentations.

 

 

 

Read also > PARIS : THE FOUR SEASONS HOTEL GEORGE V REOPENS ITS DOORS ON SEPTEMBER 1ST

 

Featured photo: © Le Meurice[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]

If some of the palaces in the French capital are betting on opening after five and a half months of inactivity, most of these establishments have postponed theirs.

 

Deprived of foreign tourists and faced with empty reservation books, less than one out of three Parisian five-star hotels resumed their activity this summer, according to the specialized firm MKG Consulting.

 

In addition, 68% have reopened in the rest of the country and 100% on the coast.

 

Our establishments have “a societal responsibility towards the stores, cab drivers, the stores they live around them, and their suppliers” , said to AFP François Delahaye, patron of the Meurice and Plaza Athénée.

 

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If some of the palaces in the French capital are betting on opening after five and a half months of inactivity, most of these establishments have postponed theirs.

 

Deprived of foreign tourists and faced with empty reservation books, less than one out of three Parisian five-star hotels resumed their activity this summer, according to the specialized firm MKG Consulting.

 

In addition, 68% have reopened in the rest of the country and 100% on the coast.

 

Our establishments have “a societal responsibility towards the stores, cab drivers, the stores they live around them, and their suppliers” , said to AFP François Delahaye, patron of the Meurice and Plaza Athénée.

 

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Thanks to its extensive knowledge of these sectors, the Luxus + editorial team deciphers for its readers the main economic and technological stakes in fashion, watchmaking, jewelry, gastronomy, perfumes and cosmetics, hotels, and prestigious real estate.

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