The luxury hotel sector is holding its breath ahead of the official publication of the new list of distinguished “Palace” establishments, expected on June 2, 2026. According to several specialized media, three iconic addresses are expected to lose this distinction of excellence awarded by the French State via Atout France.
The establishments in question are reportedly the Hôtel du Palais in Biarritz, the Park Hyatt Paris-Vendôme, and the Mandarin Oriental Paris. According to the specialized press, this decision confirms the progressive tightening of award criteria and the rapid evolution of international luxury standards.
Summary
The Palace distinction has become more demanding
Created in 2010, the Palace distinction aims to distinguish five-star hotels offering an experience deemed exceptional in terms of service, architecture, gastronomy, heritage and customer experience.
The reform, which came into effect on October 1, 2024, strengthened the requirements of the program. The award period is now limited to three years, compared to five previously, in order to maintain a consistent level of excellence.
Atout France also specifies that the criteria related to rooms, common areas and the overall experience have been strengthened as part of this reform.
The Hôtel du Palais in Biarritz is particularly exposed
The case of the Hôtel du Palais in Biarritz appears to be the most symbolic. The only Palace hotel on the French Atlantic coast, the establishment had nevertheless committed nearly 80 million euros to renovations between 2018 and 2021.
However, several media outlets are reporting reservations expressed during inspections concerning certain strategic areas, including the spa and some dining areas.
The municipality of Biarritz has already indicated its desire to support a future reconquest of the distinction.
The Mandarin Oriental Paris is already preparing for its transformation
The Mandarin Oriental Paris is also expected to lose its Palace status, according to several reliable sources. However, the hotel group has already launched a major transformation program for the property.
This plan includes, in particular, the renovation of rooms and suites, the modernization of common areas, and the opening of new restaurant concepts.
The establishment also announced the arrival of Vincent Poulingue as its general manager. He previously managed the Hôtel du Palais in Biarritz.
Increasing pressure on French luxury hotels
This sequence primarily illustrates the profound evolution of the global luxury market. Historical prestige is no longer sufficient to guarantee long-term stability at the highest level.
Today, ultra-high-end international clientele seeks comprehensive experiences that combine wellness, gastronomy, personalization, technology, design, and consistent operational excellence.
In this context, continuous investment becomes essential to maintain an ultra-premium positioning.
The subject is being followed particularly closely by luxury tourism professionals, specialist agencies and highly influential international markets, especially American and Middle Eastern ones.
Towards a recomposition of the map of French Palaces
The official publication of the 2026 list could also reveal new entrants in the very exclusive circle of French Palaces.
Several establishments that have undertaken significant upgrade work in recent years are regularly cited among the potential candidates for the distinction.
Beyond individual cases, this development confirms that the French luxury hotel industry is entering a phase of increased international competition where customer experience is becoming the main differentiating factor.
Sources
https://www.tourmag.com/Hotellerie-trois-prestigieux-hotels-lose-the-distinction-palace_a131782.html
https://www.atout-france.fr/fr/actualites/distinction-palace-ce-qui-change-avec-la-reforme
https://www.legifrance.gouv.fr/jorf/id/JORFTEXT000049078813
👉 Access all our tourism reports, statistics and analyses on Tourisme Stats.
➡️ Check out our full report on B2B Tourism to discover the key trends, figures and strategies for 2026.
👉 Stay informed about business tourism trends: subscribe to InfosTourisme Inside .
📘 Also check out our practical pages for tourism professionals .
📩 Send your press releases .
