PARIS—Within several months, the first of a new chain of 4-star boutique Parisian hotels targeting affluent leisure and business tourists will be up and running in the Latin quarter, according to hotel entrepreneur Olivier de Geffrier.
The CEO and founder of the Parisian hotel reservation website, www.Paris-Rez.net, said during an interview he is in negotiation with primarily Chinese investors for the group of 10 hotels he is purchasing and restoring.
“The first will open by the middle of next year, followed by a new opening every two to three months,” said the 48-year old de Geffrier, who has spent the past decade in hotel management.
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Olivier de Geffrier |
He said the addition of 500 hotel beds will help address a severe shortage.
“For about six months of the year, it is very hard to get a room in Paris. We are targeting a rather haute de gamme client, but a different category to the new 5-stars which ask €600 Euros (US$790) a night—we will be aiming at €200-300 Euros (US$265-390) a night.”
De Geffrier said he would manage the hotels on behalf of the investors as independent and not branded hotels.
“All of the properties will be in the most touristy and commercial neighborhoods from the 5th arrondissement (Latin Quarter, Left Bank), to the 17th arrondissement (Right Bank, near the Arc de Triomphe).”
De Geffrier is confident he will soon secure the remaining investment required for his €60 million (USD$79.4 million) project and predicts most of the backing will come from China.
“The Chinese have lots of money to spend and they want to invest in the hotel industry in France. Once you establish confidence with the Chinese, you get one project on the board, then a second and third follow,” he said.
He added, “Each of the 10 hotels requires a fairly conservative investment of €5-6 million Euros (USD$6.6-7.9 million) to purchase the building—we are seeking about 40 percent of that from the investor, the rest will come from the bank ... I have already secured about 20 percent of the required investments.
“Despite big jumps in prices over the last two to three years, Paris remains a capital which is not too expensive and is still accessible to investors who wish to invest for the medium or long-term.”