Devastating Blow: Three Major Luxury Hotels In France Lose Palace Status

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Three of France’s top luxury hotels have lost the country’s coveted “palace” distinction, in the first downgrades since the label was introduced in 2010.

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Described by Le Figaro as a “devastating blow to the hushed world of luxury hotels”, the French newspaper revealed that the Park Hyatt Paris-Vendôme, Mandarin Oriental Paris and Hôtel du Palais in Biarritz have all been stripped of the title. This is following a review by the Palace Commission, the body responsible for awarding the highest distinction in French hospitality.

The commission reportedly judged that the properties no longer met the standards of excellence required to retain the distinction, with officials citing unspecified “insufficiencies” in the criteria needed to keep the label.

The Park Hyatt Paris-Vendôme was penalised by “a lack of restoration and renewal of its offer”, said Paris Select Book. “This situation is reminiscent of that of the Hôtel du Palais in Biarritz.” However, the website added that “the context is very different” for the Mandarin Oriental Paris, which will soon undergo major renovations.

French outlet La République des Pyrénées also reported that the iconic Hôtel Byblos in Saint-Tropez no longer appears on the official list of palace hotels, although this has not yet been formally confirmed by authorities.

France currently has 27 palace-designated hotels, down from 31 when the list was last updated in 2019. More than a third of the recognised properties are located in Paris.

Despite losing the title, all properties retain their five-star classification and continue to rank among France’s most luxurious hotels.

According to the One Mile at a Time blog, the “expectation is that a ‘handful’ of new hotels will receive palace distinction, but it’s not yet clear what those are… we’ll have to wait a couple more weeks”.

The announcement is expected to be formally confirmed when France’s Tourism Minister, Serge Papin, unveils the new “Palace Collection 2026” on 2 June.

What is the palace distinction?

France introduced the palace distinction in 2010 to recognise what it considers the country’s “finest” five-star hotels.

Awarded by the French tourism ministry, the label is designed to honour establishments that embody French excellence while enhancing the country’s international image as a luxury travel destination.

Hotels must first pass an eligibility review overseen by Atout France, the country’s tourism development agency. Mandatory requirements include facilities such as spas, fitness areas, concierge services and multilingual staff.

Properties are then evaluated by a specialist panel on more subjective criteria, including location, heritage, character, environmental policies, gastronomy and the quality of service delivered by staff.

The distinction was originally reviewed every five years, but France shortened the reassessment period to three years in 2024, increasing scrutiny on luxury hotels seeking to retain the title.

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