Paris Hotels: Revenue Down 12% and Net Loss Deepened to €8.24M in First Half
The Parisian hotel group Les Hôtels de Paris published its financial report for the first half of 2026, closed on June 30. Behind declining revenue, the income statement shows an increase in current operating income, but a net loss weighed down by the rise in net financial debt costs.
Revenue at €19.3M, Pulled Back by Disposals and Second Quarter
Consolidated revenue stands at €19.3M on June 30, 2026, compared to €21.9M a year earlier, representing a decline of 12%. Hotel activity, which accounts for €18.6M, declined by 12.8%. This decline is mainly explained by a change in scope (two hotels sold in the second half of 2025, one hotel sold on January 9, 2026 and the 1K hotel partially closed for renovation) and by a second quarter marked by the deterioration of the international context. The first quarter declined by 6% to €6.9M, while the second fell by 15% to €12.4M. The group emphasizes that the 2025 comparison base included the impacts of the Olympic Games and included properties disposed of since. On a comparable scope, the group's Parisian hotels showed a 1% increase in average price, 3 percentage points in occupancy rate, and 5% in RevPAR.
Operating Income Up, Net Loss Burdened by Financial Charges
Current operating income stands at €2.47M, compared to €0.77M in the first half of 2025. This increase occurs despite the decline in revenue, while current operating expenses fell from €21.14M in the first half of 2025 to €16.83M in the first half of 2026. Personnel costs amount to €7.1M, up 1%, with headcount down 14% across the entire group. Net financial debt costs reached €10.54M, compared to €6.99M a year earlier, due to interest on borrowings rising from €4.4M to €10.8M. After accounting for this financial cost and taxes, the group's net loss stands at €8.24M, compared to a loss of €6.46M in the first half of 2025. Loss per share stands at €1.12.
Renovations, Repositioning and Arrival of Emmanuel Sauvage
The semester was marked by the resumption of renovation work, financed by Bain Capital, at Villa Luxembourg, Murano Marrakech and Normandy, whose capacity will increase by 20 rooms. Approximately one-third of the rooms at Kube Saint-Tropez were renovated during the winter closure. Following the end of the period, the group announced the arrival in September 2026 of Emmanuel Sauvage, co-founder and former head of the Evok Collection group. Under his leadership, several hotels are to reopen under a new identity: Villa Luxembourg becomes the Rorie hotel, the 1K becomes the Heron hotel and Murano Marrakech becomes Azeli. In total, cash and equivalents amount to €11.5M on June 30, 2026. Group shareholders' equity stands at negative €43.6M. Financial debt linked to Bain is €146.6M, with repayment scheduled for 2028, and Colcity debt stands at €14.5M.
