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Operating a hotel in France: legal and regulatory framework

By Yasmine EDDAM17 April 2025

Running a hotel business in France is an exciting entrepreneurial adventure, at the heart of a dynamic but highly regulated sector. Navigating the maze of legal and regulatory rules can be a complex task for professionals, whether newcomers or established players. However, a good understanding of this framework is essential if you are to secure your business, optimise your management and avoid costly setbacks. This article aims to shed light on the basics: what is a hotel business in the eyes of the law, how does official classification work, what are the particularities of hotel leases and what regulatory obligations cannot be ignored? It goes into more detail on some of the key points in the general framework of hotel law. rights and obligations in the hotel industry.

Defining the hotel business: more than just a letting

To begin with, it's important to understand the legal definition of a hotel. Article D. 311-4 of the French Tourism Code defines a hotel as ". a classified commercial accommodation establishment offering furnished rooms or flats for rent to visiting customers ". The key here is twofold: it is an activity commercial and is not limited to the simple provision of furnished accommodation.

Unlike a traditional furnished rental, a hotel necessarily involves the provision of ancillary services. Think of the regular cleaning of rooms, the provision of household linen and, often, a reception service. It is this set of services that fundamentally distinguishes a hotel and justifies its own specific regime. This commercial nature has direct consequences, particularly on the choice of legal structure for the business and the application of commercial law rules, including for the hotel contract and the customer's rights and obligations.

The hotel offer is often enhanced by additional services. A restaurant or bar within the establishment is a common example. Their presence entails additional obligations for the operator, particularly in terms of food hygiene (regulations based on the public health code) or obtaining the necessary licences to serve drinks.

The Tourism Code also recognises the concept of "tourism". seasonal hotel "This is defined as an establishment that is open for no more than nine months of the year. This definition is not insignificant: it has a direct impact on employment law. In fact, article D. 1251-1 of the French Labour Code authorises the use of "customary" fixed-term contracts in sectors where this is standard practice, such as seasonal hotels. This flexibility allows establishments whose business fluctuates greatly with the seasons to adapt their staff without having to justify the traditional reasons for using fixed-term contracts. This is an important feature to be aware of when managing human resources.

Lastly, it is useful to distinguish hotels from other regulated forms of tourist accommodation, such as tourist residences, furnished tourist accommodation (Airbnb type, which is regulated), bed and breakfasts and holiday villages, each of which is subject to specific definitions and rules.

Hotel classification: a benchmark for customers, a challenge for operators

Although not all hotels are classified, obtaining stars is a strategic move for many operators. This classification, ranging from 1 to 5 stars, offers greater visibility and provides standardised information to potential customers on the level of equipment and service expected. Although optional, it is often seen as a guarantee of quality and a significant marketing tool, especially as the classification is published free of charge by Atout France, France's tourism development agency.

The classification criteria are regularly updated (a review takes place every five years) and mainly cover three areas: the quality of the facilities (size of rooms, bedding, bathrooms, etc.), the service offered to customers (reception, languages spoken, breakfast, etc.) and aspects relating to accessibility for the disabled and sustainable development. For establishments aiming for the top of the range, the 'Palace' distinction may be sought in addition to the 5-star classification, on the basis of more subjective criteria such as the history of the place or the excellence of the service.

The procedure for obtaining or renewing a classification is formalised. The operator must appoint an independent assessment body accredited by the French Accreditation Committee (COFRAC) or a European equivalent. This body carries out an inspection visit and draws up a certificate attesting (or not) to the establishment's compliance with the requirements of the relevant category. On the basis of this report, the operator submits its application to Atout France, which then makes the classification decision.

Once classified, the hotel must display an official sign on its façade indicating its category. Failure to comply with the rules governing classification (incorrect information, serious poor maintenance of the establishment) may result in administrative penalties, such as removal from the list of classified hotels by the Prefect, or criminal penalties in the form of fines. To support efforts to modernise, operators wishing to renovate with a view to obtaining classification can take advantage of financial aid schemes such as the participative loan for hotel renovation (PPRH) managed by Bpifrance.

The hotel lease: a commercial lease with adapted rules

When a hotelier does not own the premises of its establishment, the relationship with the lessor is governed by a lease agreement. In principle, this lease is subject to the protective status of commercial leases governed by articles L. 145-1 et seq. of the French Commercial Code. In particular, this means that the hotel lessee, like any other commercial lessee, has the right to renew the lease or, failing that, to receive compensation for eviction.

However, the very nature of the hotel business justifies certain adaptations to the general rules governing commercial leases. The most obvious concerns subletting: while article L. 145-31 of the French Commercial Code prohibits a lessee from subletting without the lessor's agreement, this prohibition does not apply to hoteliers. The subletting of rooms to passing guests is the very essence of its business and cannot therefore be held against it.

The most specific point concerns improvements and equipment that the hotel lessee may wish to carry out on the leased premises. The French Tourism Code (articles L. 311-1 et seq.) provides for a special system that is generally favourable to tenants. The owner cannot object to routine improvement work (installation of air conditioning, renovation of bathrooms, etc.), even if it changes the internal layout, provided that it does not affect the shell.

On the other hand, the tenant must follow a strict procedure before the start of the work. He must notify the owner of his intention by registered letter with acknowledgement of receipt, enclosing plans and estimates. This notification is essential. Failure to do so, even if the landlord knew about it or agreed verbally, can have serious consequences: the landlord could ask for an immediate rent increase to take account of the improvements (de-capping), or even ask for the lease to be terminated for breach of contract. Imagine the unpleasant surprise of making major investments and seeing your rent increase significantly because you failed to comply with this formality!

If the planned work affects the shell of the building, the landlord's express prior agreement is required. The landlord has two months in which to respond to the tenant's request; his silence is deemed to constitute acceptance. If the landlord refuses, the tenant can apply to a specific departmental committee to try to obtain authorisation.

The other major advantage of complying with this notification procedure is financial. Article L. 311-3 of the French Tourism Code stipulates that if the lessee has correctly notified his works (whether non-structural or authorised), the lessor will not be able to invoke the incorporation of these improvements into the building to increase the rent for a period of twelve years following their completion. This is an important protective period for the operator who is investing. Case law has specified that if this 12-year period expires during the course of a renewed lease, the lessor may then request a rent increase (in stages) to take account of these improvements that have become "acquired" to the building.

With regard to setting the rent when the lease is renewed, the standard rules for commercial leases apply, with particular attention to the concept of "single use" (article R. 145-10 of the French Commercial Code). If the property is considered to have been built or fitted out for a single use (which is often the case for a hotel, even one with a restaurant/bar), the rent may be set according to the practices observed in the industry, i.e. often according to the hotel method (percentage of sales or theoretical revenue).

Finally, at the end of the lease, the tenant is not obliged to return the premises to the condition they were in prior to the work being carried out. If the lessor refuses to renew the lease without a legitimate reason, the eviction compensation due to the lessee must take into account the added value of the business as a result of the work. If the hotelier owns the premises and the business and sells the whole, it should be noted that the furniture that is essential to the business is often considered by the courts to be "property by destination" (on the basis of article 524 of the Civil Code), which means that it is sold with the building and cannot be seized separately.

It should be noted that the specific mechanism of the "hotel warrant", which in the past made it possible to guarantee a loan on hotel equipment, was repealed by an ordinance of 2021 and can therefore no longer be used.

Accessibility and safety: essential obligations

In addition to the lease, hotel operators are subject to a number of important cross-company regulations, as their establishment is a Public Access Building (ERP).

Accessibility for the disabled is a major legal obligation (article L. 111-7 et seq. of the French Construction and Housing Code - CCH). Hotels must be designed or adapted to allow access and movement for all, whatever the type of disability (motor, sensory, cognitive, etc.). This applies to architecture (ramps, wide doors), equipment (adapted sanitary facilities, lifts if capacity > 50 people), signage and reserved parking spaces. For existing establishments that did not comply, the Programmed Accessibility Agendas (Ad'AP) have made it possible to plan the work over several years, but the obligation to comply remains. Failure to comply may result in administrative penalties (closure) and criminal penalties (fines of up to €45,000 under article L. 152-4 of the CCH).

Fire safety is another key concern (articles R. 123-2 et seq. of the CCH). The operator has a direct responsibility for risk prevention. They must comply with strict standards concerning building materials, emergency exits, alarm and extinguishing systems, emergency lighting, and the installation of smoke detectors in bedrooms. Staff training in evacuation procedures and fire extinguisher handling is also essential. Failure to comply with these rules may not only result in the administrative closure of the hotel, but may also render the operator civilly and criminally liable in the event of a fire, even one of accidental or criminal origin, if negligence contributed to the incident or its consequences. For an in-depth analysis of the various aspects of the hotelier's liabilityIn the event of any damage to customers or their property, please consult our dedicated article.

Other technical standards apply, particularly in terms of thermal and acoustic insulation, to ensure guest comfort and respect for the environment. While legal obligations in terms of sustainable development are still limited for many hotels, voluntary environmental certifications (European Ecolabel, Clef Verte, etc.) are becoming commercial arguments that are increasingly valued by customers.

Finally, it should be noted that a specific protection that used to exist for hoteliers has disappeared: the "hotelier's lien", provided for in the former article 2332 of the Civil Code, has been repealed by the Order of 15 September 2021. This means that the hotelier no longer has a priority right over his customer's property to guarantee payment of his debt, nor a specific right of retention over this property. In the event of non-payment, the hotelier must now use the collection procedures available under ordinary law.

To ensure that your establishment complies with all these complex regulations or to review your hotel lease, our team, experts in commercial lawis at your disposal.