This marks an unprecedented event in French luxury hospitality. On 2 June 2026, Serge Papin, Minister for Tourism, unveiled the 2026 Palace Collection: 33 establishments now hold the prestigious distinction. Yet, behind this record number lies a historic first, three iconic ‘Palace’ hotels have lost their title, a phenomenon unseen since the label’s creation in 2010.
The Hôtel du Palais in Biarritz, the Park Hyatt Paris-Vendôme, and the Mandarin Oriental Paris have been downgraded to five-star hotels. How could three establishments of this calibre lose the highest recognition in French hospitality? Let’s delve into the reasons.
The ‘Palace’ Distinction: An Exceptional Label Under High Scrutiny
A unique French distinction, the “Palace” label was established in 2010, following the 2009 hotel classification reform which introduced the five-star category. Its objective: to distinguish, among five-star hotels, a handful of truly extraordinary establishments by their location, history, quality of service, and uniqueness. The label is awarded by the Minister for Tourism on instructions from Atout France, after in-depth inspection visits conducted by a commission of experts.
Crucially, the distinction is never permanently acquired. A 2024 reform reinforced its exceptional nature by reducing the award period from five to three years, intensifying pressure on establishments to maintain their standards at the highest level. It was precisely during these inspections that the shortcomings of the three ‘Palace’ hotels in question were highlighted.
Hôtel du Palais Biarritz: The Only Atlantic Coast ‘Palace’ Downgraded
A symbol of Biarritz, nicknamed the “Biarritz Eiffel Tower”, the Hôtel du Palais was the first to announce the loss of its distinction, by the end of March. Owned by the city of Biarritz (57%), the JCDecaux group (37%), and the Caisse des dépôts, and operated by The Unbound Collection by Hyatt, the establishment is no longer the sole ‘Palace’ hotel on the Atlantic coast.
According to La République des Pyrénées, inspection visits revealed shortcomings in certain facilities. The spa and breakfast room are specifically highlighted as no longer meeting the required standards. This is particularly striking for a hotel that benefited from a major €80 million renovation between 2018 and 2021. However, the spa was not included in that project, and 26 rooms in the north wing had not been fully renovated. The establishment, now engaged in new works, will be able to resubmit its application once these are completed. The municipality, for its part, has declared its determination to reclaim the prestigious title.
Park Hyatt Paris-Vendôme: Caught Out by a Lack of Modernisation
Just a stone’s throw from Place Vendôme and the Opéra, at 5 rue de la Paix, the Park Hyatt Paris-Vendôme had established itself as a benchmark in Parisian luxury since its opening in 2002. Conceived by American designer Ed Tuttle, the hotel cultivated a subdued contemporary elegance, popular with an international clientele.
This time, the awarding commission highlighted a lack of modernisation, sufficient to withdraw the distinction and revert it to a five-star rating. As with the Hôtel du Palais, the door is not permanently closed: the establishment can once again apply for the label after an upgrade of its infrastructure.
Mandarin Oriental Paris: Responding with a Major Renovation
Located on rue Saint-Honoré, the Mandarin Oriental Paris has also borne the brunt of this review and reverts to five-star status. However, the establishment has chosen to respond. It has confirmed a vast transformation programme set to begin at the end of October 2026, which will reshape its entire offering.
The rooms, suites, and all common areas have been entrusted to London architect Tara Bernerd, with a mission to capture “the spirit of Paris”. The culinary offering will be entirely reimagined around three distinct concepts: a new bar, a Parisian brasserie, and a gourmet restaurant, all oriented towards the hotel’s interior garden. This revitalisation coincides with the arrival, on 18 May, of a new General Manager, Vincent Poulingue, who previously managed the Hôtel du Palais Biarritz, one of the two other downgraded ‘Palace’ hotels.
Six New ‘Palaces’ in 2026, Including Le Martinez and Royal Champagne
While three establishments leave the exclusive circle, the 2026 Palace Collection simultaneously welcomes six new additions, bringing the total to 33 establishments. In Paris, the Bvlgari, Cheval Blanc, and Fouquet’s have achieved the distinction. The Alps gain a ‘Palace’ hotel with the Four Seasons Resort Megève. On the French Riviera, the Hôtel Martinez in Cannes finally secures its title, while Champagne celebrates its first ‘Palace’ hotel with the Royal Champagne Hôtel & Spa. For the complete overview, discover the 33 ‘Palace’ hotels in the 2026 Collection.
This renewal illustrates a reality of the sector: excellence is a permanent quest, demanding constant investment. The three downgraded hotels have already initiated or announced the projects that will enable them, in the future, to rejoin this highly exclusive club.
