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Paris Ritz closes for facelift
Paris Ritz closes for facelift

The Paris Ritz closes today for a two-year facelift to bring the city's best-known luxury hotel into the 21st century and keep its mega-rich clientele coming back in an ever-more competitive market.

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The renovation comes after the five-star hotel, which neighbours the famed jewellers of Paris' Place Vendome but has not had a refit since 1979, failed to win France's coveted "palace" designation marking a top luxury destination.

Owned by Egyptian tycoon Mohamed Al Fayed, it was once the hotel of choice of Charlie Chaplin, Coco Chanel and Ernest Hemingway, and the place where princess Diana and Al Fayed's son, Dodi, dined in 1997 before their fatal car crash.

The 140 million euro ($A165.06 million) refurbishment will last until mid 2014, equipping the Ritz with a new garden restaurant and fitting out its 160 rooms with "the latest technology".

All the bedrooms will be redecorated but a Ritz spokeswoman said the rooms would stay traditional in style, in its trademark tones of pink, almond green, yellow and sky blue.

Founded in 1898 by Cesar Ritz and the chef Auguste Escoffier, the hotel is home to L'Espadon restaurant, holder of two Michelin stars, and the Ritz-Escoffier cooking school.

For closing night on Tuesday, chef Michel Roth has put on a special 240-euro menu with foie gras, blue lobster in raspberry vinaigrette with caviar and the Ritz's signature peach melba among the delicacies on the cards.

Likewise, the hotel was virtually booked out for Monday night, mostly to regulars, for prices ranging from 850 to 10,000 euros for the Coco Chanel suite.

The Ritz's 460 employees have all been promised their jobs back after the renovation. In the meantime, 320 have taken up a generous severance package offered by the hotel.

For industry insiders, it was high time for the facelift.

"It was a waste to see a hotel with such a location, with such a history, in a state like this," said Vanguelis Panayotis, head of development at the MKG Group hospitality consultancy.

"To justify this kind of price, you really have to offer quality on a par with the competition."

Two state-of-the-art Asian luxury hotels opened in Paris in 2010, the Shangri-La and the Mandarin Oriental, raising the stakes for historic players like the Ritz.

Another established Paris hotel, the nearby Crillon, is closing for renovations later this year.

The Bristol and Meurice hotels have already had facelifts, the Plaza-Athenee is working on an extension, and the Royal Monceau underwent a full refurbishment under its new Qatari ownership from 2008 to 2010.