Philippe Gaugier, partner in tourism and hotels at Deloitte

How is Paris redesigning its hotel map?

Philippe Gaugier - We're tending towards a generalisation of superior three-star and four-star hotels. We are already seeing no more one-star hotels, and we will soon see no more two-star hotels, which are gradually being transformed into boutique hotels that are much more profitable given property prices. There are only a few small units left, such as the Five (in the heart of the Latin Quarter, editor's note) which, with ten or so rooms, is managing to achieve rates of 150 euros a night. As a general rule, it's not a product that attracts customers to a four-star hotel, it's its location, with the exception of a few avant-garde rooms like those found near Bastille.

What impact will the announced increase in top-of-the-range properties have on the Paris market?

P. G. - The very top-of-the-range offer sets the tone for the lower categories. The spa is a good example. It has been redesigned and adapted to suit the positioning. For example, the Saint James has created a slightly less luxurious unit than the George V, while the new Concorde, on Place de Catalogne, has opted for a large fitness centre better suited to its positioning between three-star sup. and four-star.

The pace at which palaces set prices is also interesting. When the George V reopened, with a wider range of services and products, it set significantly higher prices. The whole market followed suit. Today, Fouquet's has the same weapons as the George V in its day, with a concept of service taken to extremes.