Four and five-star hotels in Réunion Island recorded a +14% rise in occupancy in 2025, according to the latest CEROM (Rapid Economic Accounts for Overseas Territories) report. The figure stands in sharp contrast to 2024's stagnation and confirms the island's repositioning toward the premium segment.
A two-speed recovery
Overall occupancy at collective accommodations on the island grew by +5% in 2025, reversing a -0.6% dip in 2024. But it is the luxury segment driving momentum: four and five-star establishments posted +14%, with a peak of +8% in the West Coast area — historically the most sought-after zone for affluent visitors, stretching from Saint-Gilles to Saint-Leu.
International visitors grew by +9%, compared to +5% for mainland France residents. However, the latter still account for 92% of total overnight stays, highlighting the island's structural dependence on the French domestic market.
Post-Cyclone Garance: a resilient sector
The year had started badly. Cyclone Garance swept through the island in March 2025 and was followed by a chikungunya epidemic, abruptly halting the recovery in its tracks. The rebound in hotel occupancy over the rest of the year reflects both the resilience of local operators and new investments in premium refurbishments and exclusive stay packages.
A strategic signal for the region
While Mauritius and the Maldives capture most of the Indian Ocean's high-end international clientele, Réunion is carving out a distinct "authenticity" niche: hikes through volcanic cirques, Creole gastronomy, mountain eco-lodges. New five-star openings between 2023 and 2025 have helped cement the island's upmarket credentials.
Why it matters
Tourism is one of the few fast-growing sectors in an economy where structural unemployment remains a challenge. The luxury signal is strategic: Réunion is targeting high-spending international visitors. The priority for decision-makers is now to convert this momentum into skilled jobs, hospitality training and sustainable investment — ensuring growth benefits the whole island, not just coastal resorts.
Source: CEROM / Le Journal des Archipels, July 2026