Bombshell in French hospitality: three luxury hotels lose their palace status
For the first time since 2010, the commission responsible for awarding the prestigious distinction has stripped it from three hotels. Serge Papin, the minister in charge of tourism, will unveil the new "Collection Palace 2026" on 2 June.
A bombshell in the hushed world of palace hotels. The Palace Commission, which awards French hospitality's highest distinction, has stripped it from several establishments for the first time. Three in total, according to our information: all have been downgraded to the rank of five-star hotels, with commission members deeming that they no longer met the standards of excellence the selection demands.
In Paris, the affected hotels are the Park Hyatt Paris-Vendôme on rue de la Paix, and the Mandarin Oriental on rue Saint-Honoré. In Biarritz, the Hôtel du Palais, operated by the American group Hyatt, has also lost its title. They will not be part of "Collection Palace 2026," which Serge Papin, Minister of Tourism, will unveil on 2 June in the prestigious salons of the Hôtel Salomon de Rothschild in Paris. Contacted by Le Figaro, the ministry did not respond, nor did the Hyatt group.
Thierry Marx gone from the Mandarin Oriental kitchens
"For the Mandarin Oriental, which will close for more than a year for major renovation works, it isn't really a loss of distinction," qualifies someone close to the matter. "There was no point in maintaining it. The Hôtel du Palais suffered notably from having a portion of its rooms unrenovated. As for the Park Hyatt Paris-Vendôme, it hasn't reinvented itself enough." For the owners of these establishments, classified as palaces for years, it's a shock. The highly demanding clientele could be tempted to look elsewhere. Internally, part of the teams could decide to leave.
Based in Hong Kong, the Mandarin Oriental group set up on rue Saint-Honoré in 2010. The address had been distinguished as a palace since 2011, but it had aged. Too much to claim a place among the most beautiful hotels in France. In late 2023, chef Thierry Marx ended his collaboration with the hotel after 14 years heading its kitchens.
Thanks to the Lutetia, which it has operated since early 2025, Mandarin Oriental remains at the helm of a Parisian palace. But it will work to quickly recover its lost star on the right bank. "Our teams continue to welcome our guests with the same dedication and attention that characterizes the group worldwide," a spokesperson for the Mandarin Oriental Paris told Le Figaro this weekend. "We recently announced an ambitious transformation programme for the hotel, which will cover all the rooms and suites, bathrooms, common areas, the spa as well as the entire restaurant offering."
"A difficult sanction to live with, but it can be recovered"
"For these three hotels and their teams, it's a sanction that's difficult to live with, but it can be recovered," tempers a source close to the matter. They can indeed apply again for the distinction, and why not, regain it.
Created by the government in 2010, this official recognition requires meeting all the criteria of a five-star hotel, and more: a spa, valet service, a minimum number of suites, and that exceptional je-ne-sais-quoi, a highly subjective criterion (heritage, atmosphere, design, level of service…). At the end of 2024, there were 31 palaces in France (Plaza Athénée, George V, Cheval Blanc Courchevel, Hôtel du Cap-Eden-Roc, Les Airelles Gordes…). The list does not, however, include the Ritz in Paris, the legendary hotel no longer being a candidate for the distinction since it failed to obtain it in 2011.
The 2026 selection marks a turning point. The Palace Commission had not met since the end of Covid, to give hotels time to get back up and running. Made up of independent personalities, with Atout France serving as its general secretariat, the Ministry of Tourism officially awards the distinctions. Chaired by Pierre Ferchaud (former general manager of the Hôtel de Paris Saint-Tropez and the Bristol in Paris), it was entirely renewed on the occasion of a reform of the distinction at the end of 2024. A reform that meant tightening: the duration of attribution has gone from 5 to 3 years, in order to "reinforce the exceptional character of establishments holding it," according to Atout France, and contribute to driving the country's most beautiful hotels upmarket.
"Differentiating in an extremely competitive market"
Despite three unsuccessful candidates, six others have been renewed: Les Prés d'Eugénie in the Landes, Cheval Blanc Saint-Barth and Les Airelles Courchevel, Les Sources de Caudalie, Mandarin Oriental Lutetia Paris, and Shangri-La Paris. "The Palace distinction therefore remains an important marker," states Nicolas De Gols, general manager of the Shangri-La. "It reinforces the international positioning of an establishment and allows it to differentiate itself in an extremely competitive market. It has a direct impact on commercial attractiveness, partnerships with major luxury houses, and the ability to attract an ultra high-end clientele."
Newcomers will join them on 2 June. "A handful, in Paris and in the provinces," according to several sources close to the matter. In Paris, Cheval Blanc, Fouquet's and Bulgari are regularly cited; in Champillon in the Marne, the Hôtel Royal Champagne. "The Barrière group has massively invested to enhance the Hôtel Fouquet's with a total renovation of the lobby and spa, as well as to train our teams to the highest level," acknowledges Julien Gardin, general manager of the Hôtel Fouquet's Paris. The distinction must renew itself to remain attractive. But it must also take care to preserve the rarity of its selection, if it wants to remain a worldwide reference.