Selling or partnering your hotel or restaurant group in France: occupancy, costs, property and business, and sector consolidation

For decades, a hotel was handed down within the family, sometimes over three generations, and a restaurant was sold privately to the chef who wanted to set up, with property and business often in the same hands. This model still exists, but it faces a new reality. Staff and energy costs have risen faster than prices, guests expect renovated establishments that are visible online, banks are less willing to finance a buy-out without equity, and children do not always want to take over a seven-days-a-week trade.

At the same time, tourist numbers are at record levels, chains and regional groups are buying independent hotels to bring them under a brand, investors are separating property from operations, and chain restaurants are gaining ground. For the owner of a hotel, a regional hotel group or a restaurant network, the buyers, the timing and the preparation of a sale have changed.

A sector with record occupancy, but fragile accounts

France had 14,886 hotels and 618,000 rooms in 2025, according to the national statistics institute INSEE, for 220.2 million nights, 83.5 million of them from foreign guests, and an average occupancy rate of 62.3%. ¹ The stock remains overwhelmingly independent by number of establishments, 11,253 independent hotels against 3,634 chain hotels, but chains already account for almost as many nights (109.2 million against 111 million) with a higher occupancy rate (64.4% against 60.2%). ¹ Demand is healthy: hotel nights rose 4.4% in summer 2025, driven by foreign guests up 6.8%, and another 2.1% in the fourth quarter. ^2,3

Restaurants present a more mixed picture. According to Food Service Vision's 2025 chains review, the 452 restaurant chains exceeded €21 billion in revenue in 2024 with 16,845 outlets, 26% more than in 2019, almost entirely thanks to 3,591 openings; fast food accounts for 75% of this market. ⁴ At the other end, Altares counted 2,119 restaurant failures in the fourth quarter of 2025 alone, up 8%, and 2,101 in the first quarter of 2026, while those of traditional hotels rose 32% in that latest quarter, according to figures cited by the hospitality union UMIH. ^5,6

The drivers of consolidation

Several factors are pushing independent hoteliers and restaurateurs to combine or join a group.

Rising operating costs. Increases in the minimum wage and the collective agreement pay scale, energy, raw materials, insurance, platform commissions: costs have risen faster than average prices, especially in traditional restaurants and out-of-town hotels. Groups negotiate purchasing, energy and insurance across dozens of establishments and rely on loyalty programmes and direct distribution, which partly explains the occupancy gap measured by INSEE. ¹
The weight of investment. Room renovation every seven to ten years, fire and accessibility standards, energy performance, kitchens, booking systems: an unrenovated hotel loses its star rating, its visibility and its average rate. An owner close to retirement hesitates to commit to works they will not see paid back, and that is often when the question of a sale arises.
The staff shortage. Cooks, waiters, receptionists and housekeepers are scarce in every tourist region. Groups retain staff better through internal mobility, seasonal staff housing and training; for a family hotel, the inability to recruit means closed rooms and a restaurant at a standstill.
Owner demographics. According to a Bpifrance Le Lab study published in November 2025, 40% of owners of micro-businesses, SMEs and mid-caps intend to hand over within five years, and tourism is the sector where this intention is strongest, at 54% of owners; in the Gers department, according to UMIH, 60% of establishments will change hands within fifteen years. ^6,7,8 Waiting means risking a forced sale.

Who buys hotels and restaurants today

The sector has no restrictions on capital ownership, but a sale requires dealing with the separation or combination of property and business, the transfer of the liquor licence (licence IV) and star rating, the commercial lease, exit clauses in any brand contract, prior information of employees and the municipality's pre-emption right over certain businesses. Five buyer profiles stand out.

National hotel groups and voluntary networks. They buy or take over the management of independent hotels to bring them under one of their brands, providing distribution, loyalty and purchasing. They are often the most active buyer for a 40 to 100-room hotel in a mid-sized town or on the coast.
Regional hotel groups and growing families. An operator running five to twenty hotels in a region seeks to densify its network, pool management, booking and maintenance, and take over establishments from retiring peers. It is the most natural buyer of a well-located family hotel.
Property funds and private investors. They buy the property, sometimes property and business, then entrust operations to an operator under a lease or management contract. This separation lets the seller sell to two different buyers, each paying for what it values best.
Fund-backed platforms. Funds have taken control of hotel groups or restaurant networks to pursue a buy-and-build strategy: combine establishments, strengthen a brand, professionalise management, then sell the whole within five to seven years.
Restaurant chains and multi-unit franchisees. In restaurants, buyers are the brands themselves, which buy locations or regional networks, and multi-site franchisees seeking critical mass. A group of five to fifteen profitable restaurants with secure leases finds several candidates today.

What this changes for the owner

There is no longer a single path to succession, but several.

A full sale suits an owner close to retirement, with a transition of a few months to a year; it can cover the business alone, with the property kept for rental income, or the whole.
A partnership with reinvestment is for an owner, whatever their age, who still has several years of activity ahead and runs several establishments: they sell a majority to a group or fund, reinvest part of the price and share in the value created at the next transaction.
A combination between peers creates an independent regional hotel or restaurant group, pools management, purchasing, distribution and maintenance, and carries more weight against platforms.
A capital reorganisation such as an OBO lets the founder monetise part of their shares, financed by debt and property, and bring their operations director or children into the capital without giving up control.

Whatever the structure, buyers look at the same things, and an establishment able to present its operating indicators month by month, compared with the local market, sells far better. The criteria that come up in every file are the following.

Operating indicators compared with the local market. Occupancy, average daily rate and revenue per available room over several seasons, average spend and covers for restaurants, compared with similar establishments in the area.
Guest and distribution mix. Split between leisure, business, groups and seminars, seasonality, and the share of direct bookings versus platforms, whose commissions weigh on margin.
The building and remaining works. Date of the last renovations, condition of rooms, kitchens and common areas, energy performance and the amount of works a buyer will deduct from the price.
Property and lease situation. Ownership of the property or commercial lease, remaining term, rent relative to market and assignment clauses; this determines how the deal is structured.
Profitability by establishment and activity. Margin on rooms, food, bar and seminars, staff and food cost ratios, and real profitability once the owner's pay and rent are normalised.
Management and teams. Stability of the general manager, head chef and department heads, the team's ability to run the establishment in season and seasonal staff housing.
Compliance and authorisations. Safety commission, accessibility, star rating, liquor licence, any brand contract and its exit clauses, terrace or signage permits.

You are thinking of selling: is this the right moment for you?

This is the first question we ask, and the answer is not the same for everyone. The right moment for a sale or partnership is never automatically "right now", even in a market where groups, investors and brands are looking for establishments. It depends on two things: you, meaning your life plans, personal horizon and wealth objectives, and your business, meaning its ability to realise today all the value it holds. We encounter two situations.

Your business is almost ready. Rooms have been recently renovated, occupancy and average rate compare well with the local market, guests are diversified with a significant share of direct sales, teams are stable, the property and lease situation is clear and profitability is readable. Or you want your business to become part of a larger project, that of a large group, often under LBO, that brings the brand, distribution and the resources to finance renovations, which is reassuring for you and for your teams. In this case, a few weeks of preparation are enough to go to market. The current context, with more buyers than ever, then works in your favour.
Your business needs time. The rooms have not been touched for fifteen years and the cost of works would be deducted from the price, last year's margin was hit by a wage or energy increase not passed on, the safety commission issued unresolved requirements, or the lease is expiring with no renewal negotiated. Selling remains possible, but it means accepting a discount and less favourable terms. We will then tell you frankly that it is better to spend several months, sometimes a few years, working on these points, and we can support you through that phase before launching the transaction when you are truly ready.

The workstreams that make the difference in hotels and restaurants are well known: plan and finance renovations rather than suffer them, develop direct sales and business or seminar guests, measure profitability by activity and establishment, secure leases and clarify the property situation, lift compliance requirements, structure management, and normalise the owner's pay and rent. Depending on your starting point, they take a few weeks or a few years.

The benefit of talking early, even without being sure you want to sell, is knowing which of these two situations you are in, and deciding with full knowledge rather than under the pressure of a lost star rating, a season missed for lack of staff or works you cannot finance.

Facing hotel groups, brands and investors that complete several acquisitions a year with dedicated teams, an owner negotiating alone is rarely on an equal footing. The value of a hotel or restaurant group is not just a headline price: it depends on the deal structure (sale of property, business or both, cash portion, earn-out, reinvestment), the treatment of upcoming works, the warranties, the future of the teams and your role during the transition. Two offers for the same amount can mean very different things.

The role of an independent M&A adviser is to value the business objectively, property and operations, identify all relevant buyers, national and regional groups, property investors, fund-backed platforms, brands and peers, put them in competition in a structured and confidential process, and negotiate terms beyond price alone. This competition protects the seller.

Frequently asked questions

Should you sell your hotel's property along with the business?

Not necessarily. The business can be sold alone, with the property kept for rental income, or the whole can be sold, sometimes to two different buyers, a property investor for the building and an operator for the business, each paying for what it values best. The choice depends on the rent the operations can sustain, upcoming works and the owner's wealth objectives.

Can an unrenovated independent hotel be sold?

Yes, but the cost of works will be deducted from the price and buyers will be fewer, especially if the star rating or online visibility has suffered. When the location is good, regional groups and investors buy precisely to renovate and reposition. Planning renovations rather than suffering them clearly changes the terms of the sale.

Can you sell your hotel or restaurant group and remain its manager?

Yes. A partnership with reinvestment lets an owner running several establishments sell a majority to a group or fund, reinvest part of the price and share in the value created at the next transaction. A capital reorganisation such as an OBO, financed by debt and property, lets you monetise part of your shares and bring in your operations director or children without giving up control.

How long does it take to sell a hotel or restaurant?

Allow six to twelve months between the first conversation and signing: preparing the file, confidentially approaching buyers, offers, accounting, technical and legal due diligence, negotiation, then formalities relating to the lease, liquor licence, star rating, prior information of employees and any municipal pre-emption right.

Who buys hotels and restaurants today?

National hotel groups and voluntary networks bringing independents under a brand, regional hotel groups and growing families densifying their network, property funds and private investors buying the property and entrusting operations to an operator, fund-backed platforms and, in restaurants, the brands themselves and multi-site franchisees.

Does a single restaurant or small restaurant group interest chains?

A standalone restaurant mainly interests a chef or peer wanting to set up, unless the location is strategic for a brand. A group of five to fifteen profitable restaurants with secure leases and stable management, by contrast, finds several candidates: national brands, multi-site franchisees seeking critical mass and fund-backed platforms.

When should you start preparing the sale of your hotel?

Two to three years before the target date, to have time to plan and finance renovations, develop direct sales and business or seminar guests, measure profitability by activity, secure leases and clarify the property situation, lift compliance requirements and normalise the owner's pay and rent.

Why put several buyers in competition to sell your hotel?

Because a national group, a regional operator, a property investor and a brand do not value the same things: one pays for brand and distribution, another for the property, the third for the location. A confidential process that puts them in competition allows you to compare genuinely different projects and negotiate beyond the headline price: sale of property or business, cash portion, earn-out, treatment of works, warranties and the future of the teams.

Public sources consulted

INSEE, Parc et fréquentation des hôtels, données annuelles 2025 (23 juillet 2026) : https://www.insee.fr/fr/statistiques/2015412 (high reliability)
Banque des Territoires, Localtis, Hébergement touristique : l'INSEE voit dans l'été 2025 une embellie (26 septembre 2025) : https://www.banquedesterritoires.fr/hebergement-touristique-linsee-voit-dans-lete-2025-une-embellie (high reliability)
INSEE, Informations rapides n° 39, Au quatrième trimestre 2025, la fréquentation des hébergements collectifs touristiques hors campings est en hausse de 2,2 % sur un an (19 février 2026) : https://www.insee.fr/fr/statistiques/8739138 (high reliability)
Franchise Magazine, Édition 2025 de la Revue Chaînes de Food Service Vision, chiffres 2024 des chaînes de restauration (11 juin 2025) : https://www.franchise-magazine.com/news-franchise/enquete-chaines-restauration-rapide-juin-2025 (good reliability)
Altares, Défaillances d'entreprises en France, bilan 2025 et 4e trimestre, communiqué de presse (20 janvier 2026) : https://www.altares.com/wp-content/uploads/CP-ALTARES-DEFAILLANCES-T4-BILAN-2025.pdf (high reliability)
UMIH, L'Essentiel n° 38, lettre d'information de la confédération, conjoncture, défaillances Altares du 1er trimestre 2026 et transmission (mai 2026) : https://www.umih.fr/assets/files/site/medias/l-essentiel-nous-chrd/2026_mai_L_essentiel_38.pdf (good reliability)
Bpifrance Création, Observatoire, Un marché de 370 000 entreprises à reprendre d'ici 2030, étude Bpifrance Le Lab avec CCI France, CMA France et CRA (27 novembre 2025) : https://bpifrance-creation.fr/observatoire/actualites/marche-370-000-entreprises-a-reprendre-dici-2030 (high reliability)
L'Express Franchise, Secteur, région, taille : quel est le profil des 370 000 dirigeants souhaitant transmettre leur entreprise d'ici 2030, synthèse de l'étude Bpifrance Le Lab avec le détail par secteur (28 novembre 2025) : https://lexpress-franchise.com/actualites/secteur-region-taille-quel-est-le-profil-des-370-000-dirigeants-souhaitant-transmettre-leur-entreprise-dici-2030-en-france/ (moderate reliability)