They mean different things. Nobody can answer your question without knowing what tense you want to use

Does this question have more context?

That looks correct although you could put a “his” before creative work. Used to hold means - no longer holds but previously did. So I take it that is not what you mean. Would always hold is an alternative, slightly more artistic way of saying it. The difference is it suggests a degree of future movement, it’s quite subtle. As if it puts the reader in the time you are talking in and moves forward across the relevant period. Held is just simple past, the term always qualifies it. In this case you could use either and it just depends on the mood you are going for

It is worth mentioning that Paris would always hold a particular place in his life

I agree that "held" is the correct word in this context.