Adagio Eiffel Tower: How Much to terminate the lease?

How much total eviction compensation is required to recover the apartment?

Adagio Eiffel Tower (formerly Paris Côté Seine)

The eviction compensation for the landlords/lessors represented in the context of the legal appraisal is:

(sources : trois expertises judiciaires de 2024)

(sources: three legal appraisals from 2024)

The legal expert used a coefficient of 1.75 for the operator’s average annual turnover for the main eviction indemnity and not 3 like P and V was asking for.

1. General context and presentation of the residence

The Adagio Paris Tour Eiffel residence is located in the 15th arrondissement of Paris, in the immediate vicinity of the Seine and a few minutes from the Eiffel Tower. It is a tourist residence operated under the Adagio brand (Accor group), offering apartments with hotel services (concierge, cleaning, etc.).

Apartment types: studios, two-room apartments, or even larger areas (depending on the configuration), generally intended for mixed use – short stays, medium stays (business or leisure tourism).

Positioning: mid-range/high-end segment for business or leisure tourism, with a central geographical location, close to transport (metro, bus) and major tourist attractions.

Thanks to its strategic location and the strength of the Adagio brand, this residence attracts an international clientele and enjoys good visibility on booking platforms.

2. Context of the Parisian property market

a) Dynamics of the property market in the 15th arrondissement

Stable demand: the 15th arrondissement, due to its proximity to the centre of Paris and its business areas (Montparnasse district, nearby Issy-les-Moulineaux), has a sustained demand for accommodation, whether as a main residence or a furnished rental for tourists.

Price level: the 15ᵗʰ remains one of the relatively popular arrondissements, with high prices per square metre, even if they can be slightly lower than those of certain more central districts (6ᵗʰ, 7ᵗʰ, 8ᵗʰ). The transaction values for a luxury apartment can be, at the time of this study, in an indicative range of around €11,000 to €14,000/m² (or even more depending on the view, the floor or the services).

b) Market for tourist residences in Paris

Tourist attraction

Paris remains one of the world’s top destinations in the world, for both leisure and business tourism.

This is reflected in a generally high occupancy rate in hotels and para-hotel residences, even if the health crisis may have temporarily impacted this segment.

Increased competition

In the 15th arrondissement of Paris and the surrounding area, there are several other hotel residences, apart hotels and tourist accommodation (including Airbnb). The Adagio brand being well known, this nevertheless confers a solidity of operation and an  occupancy rate that is often above average.

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