Cagnes-sur-Mer’s Hotel Indigo Enters Judicial Recovery
The luxury hotel faces financial challenges just three years after opening, sparking concerns among local businesses and officials.
The four-star Indigo hotel, located in the heart of Cagnes-sur-Mer, is currently undergoing judicial recovery proceedings, having been unable to meet its financial obligations just three years after its highly publicized opening.
The hotel, which opened in 2022, has struggled with low occupancy rates, leading to its current financial predicament since March.
Under the judicial recovery status, the hotel's debts are frozen, and it is being managed by a judicial administrator who will oversee its operations and help stabilize its finances over a potential 18-month period.
The hotel boasts 87 rooms, including seven luxury suites, and features an Italian bistro restaurant, Cucina Victoria.
Despite the high standards and appealing location, questions remain about the hotel’s competitiveness compared to nearby accommodations with ocean views.
Local merchants have expressed a shared sense of inevitability regarding the hotel’s struggles, citing persistent low occupancy levels.
Local baker Thierry Nicolle highlighted that while hotels in Nice reach full capacity during peak season, Cagnes-sur-Mer only sees a brief influx of tourists, which fails to sustain Indigo's operations.
Nicolle lamented the gap between the project's promised benefits to the local economy and the current reality, noting a significant decline in clientele since the hotel’s opening.
Hair salon owner Sabine Vincent echoed these sentiments, reporting minimal economic returns from the establishment despite positive feedback from guests.
Conversely, certain establishments like Le Printemps, owned by Sacha Coppini, have benefitted indirectly from the hotel, as patrons have opted to dine at his restaurant instead.
The hotel, set within a modern 4,000-square-meter building, faced delays prior to its opening, with construction beginning only after a three-year wait for necessary permits.
The project saw various challenges from its outset, and it wasn’t until 2021 that the Réaumur group took over operations.
Local officials, including opposition council member Philippe Touzeau-Menoni, have critiqued the local government’s overly optimistic projections regarding the hotel’s potential to attract high-end tourism, suggesting that the area does not possess the appeal needed to compete with established luxury destinations like Cannes and Nice.
While the local municipality has not offered public commentary regarding the hotel’s financial situation, it is clear that the ongoing case has implications for Cagnes-sur-Mer’s economic landscape.
The hotel, which opened in 2022, has struggled with low occupancy rates, leading to its current financial predicament since March.
Under the judicial recovery status, the hotel's debts are frozen, and it is being managed by a judicial administrator who will oversee its operations and help stabilize its finances over a potential 18-month period.
The hotel boasts 87 rooms, including seven luxury suites, and features an Italian bistro restaurant, Cucina Victoria.
Despite the high standards and appealing location, questions remain about the hotel’s competitiveness compared to nearby accommodations with ocean views.
Local merchants have expressed a shared sense of inevitability regarding the hotel’s struggles, citing persistent low occupancy levels.
Local baker Thierry Nicolle highlighted that while hotels in Nice reach full capacity during peak season, Cagnes-sur-Mer only sees a brief influx of tourists, which fails to sustain Indigo's operations.
Nicolle lamented the gap between the project's promised benefits to the local economy and the current reality, noting a significant decline in clientele since the hotel’s opening.
Hair salon owner Sabine Vincent echoed these sentiments, reporting minimal economic returns from the establishment despite positive feedback from guests.
Conversely, certain establishments like Le Printemps, owned by Sacha Coppini, have benefitted indirectly from the hotel, as patrons have opted to dine at his restaurant instead.
The hotel, set within a modern 4,000-square-meter building, faced delays prior to its opening, with construction beginning only after a three-year wait for necessary permits.
The project saw various challenges from its outset, and it wasn’t until 2021 that the Réaumur group took over operations.
Local officials, including opposition council member Philippe Touzeau-Menoni, have critiqued the local government’s overly optimistic projections regarding the hotel’s potential to attract high-end tourism, suggesting that the area does not possess the appeal needed to compete with established luxury destinations like Cannes and Nice.
While the local municipality has not offered public commentary regarding the hotel’s financial situation, it is clear that the ongoing case has implications for Cagnes-sur-Mer’s economic landscape.
