Ritz Paris: Profit slashed despite US popularity at Al-Fayed-owned luxury hotel
Ritz Paris, the luxury hotel owned by the Al-Fayed family, saw its profit slashed during 2023 despite sales jumping thanks to its continuing popularity among US visitors.
The five-star hotel was opened by César Ritz eight years before he opened The Ritz London in 1906.
Mohamed Al-Fayed, who died last year, bought Ritz Paris in 1979.
According to newly-filed accounts with Companies House, the hotel’s pre-tax profit was cut from €27.2m (£23.2m) to €2.4m (£2m) in 2023.
However, its turnover increased from €104.7m (£89.6m) to €128.5m (109.9m).
Ritz Paris racked up room sales of €86.1m (£73.6m) in 2023, up from €67.4m (£57.6m). Turnover from food and beverages also increased from €26.5m (£22.6m) to €30.9m (£26.4m).
During the year the average number of people employed by the hotel rose from 594 to 650.
A statement signed off by the board said: “The company’s key performance indicators of occupancy rates, average daily rates and revenue per available room were higher when compared to [the] previous year.
“The average daily rate for the full year was up 26 per cent versus [the] prior year which was already the highest.
“Occupancy at 65.1 per cent is up 0.8 per cent versus [the] prior year.
“The balance between occupancy and daily rates was cautiously managed in the last quarter.
“The US customers remain by far the largest community of customers of the hotel.”
Ritz Paris is owned separately to London’s version which was sold to Abdulhadi Mana al-Hajri, a Qatari businessman who is the brother-in-law of the Gulf state’s rulers, in March 2020.
It had previously been owned by the billionaire Barclay family.
Accounts for the London hotel for 2023 are not due to be filed with Companies House until the end of September.
For 2022, The Ritz London reported a turnover of £36m and a pre-tax loss of £16.5m.