Upmarket stays and experience-seeking guests buoy French hotels

Strong performance despite economic headwinds

French hospitality is holding its own and reinventing itself, according to the 49th edition of the study "L’Industrie Hôtelière Française" published by consultancy Rydge Conseil. 

Stéphane Botz, senior partner and co-founder of the firm, unveiled the report to the press on 29 September and set out the big dynamics shaping the sector.

The study, which surveyed 3,176 properties representing 251,100 rooms, points to very positive signals on revenue per room - particularly at the upmarket end - and to growing appeal for investors. 

"€3 billion invested, third-largest European market, 18% of commercial real estate: 2025 is a benchmark vintage for French hospitality, which has never featured so prominently in investors’ portfolios," Botz said as he opened his presentation.

The report highlights four broad dynamics helping hotels overcome headwinds and sustain growth: agritourism that blends accommodation, gastronomy and agriculture; a rush for coastal land; offers built around sport, a trend recently identified by Airbnb; and brand-led storytelling that turns a hotel stay into a fully fledged experience. 

"The power of imagination and brand narratives matters, because we can see how it is increasingly turning hotels into strong destinations in their own right," Botz noted, pointing to the rapid development of brands that nurture a sense of belonging among guests.

These trends are mirrored in investment strategies, which now seek to meet travellers’ desire to add meaning and experience to their stays. Hotels are working harder to root themselves in their local area, at the heart of their cities, and to offer services not only to visitors from afar but to residents as well. 

"Make Food & Beverage a genuine lever for creating value, which requires bringing in the right expertise, drawing inspiration from concepts reshaping the market today, managing economic performance and choosing the operating model best suited to the property," Botz explained. 

"It is a real lever for enhancing a hotel asset today."

The study also notes a shift away from city outskirts, framing it as an asset-management play. That reading is reinforced by tax measures that make intergenerational transfers easier, notably via the Pacte Dutreil.

Rydge’s report underlines the resilience of France’s hotel market which, with demand staying firm and hotels seen as a way to build long-term assets, continues to attract capital even in stormy conditions.