Paris 'palace' hotels face growing challenges

Paris

LUXURY hotels in Paris have taken a beating this year, with the Charlie Hebdo attacks scaring off visitors and websites like Airbnb stealing away clients, but analysts say the lure of the "palaces" has not yet faded.

"The shock of Charlie (attacks) affected us enormously in the first quarter, our occupancy rate was easily down by 20 per cent and it took us time to get back up to speed," says Michel Jauslin, director of the Park Hyatt Paris Vendome.

Islamist gunmen carried out a string of attacks in Paris in January that left 17 dead, including much of the editorial team of the satirical magazine Charlie Hebdo.

"It's been a dreary year, we're going to finish with a 65 per cent occupation rate," Didier Le Calvez, chief executive at the Bristo…