Marseille Provence 2013: hotel activity is in flight after a difficult take off

After a slow start, the benefits of being the European Culture Capital status is finally starting to be felt in hotel activity. The data published by MKG Hospitality clearly shows that sector indicators have been rising since April, corresponding to the opening the summer season and several expected cultural events.

Five months after the launch of Marseille Provence 2013, the 12th of last January, organizers were talking about a first success with 2 million event visitors recorded: 1.85 million events spectators and 475,000 visitors to the M Pavilion. Attendance did not have an immediate impact on the business of hoteliers in the city, which had to patiently wait out their troubles over the first three months of the year. Over the period, occupancy rates and average daily rates showed negative changes as compared to last year, losing a little more Revenue per available room (a general indicator combining occupancy and average daily rates) each month. However, it should be noted that hotel performance for March 2012 was particularly good due to having held the Sixth World Water Forum.

The number of visitors seems to have intensified with the arrival of spring, reversing the trend in hotel activity. Since April, the data observed by MKG Hospitality indeed show an increase in sector indicators, driven by rising occupancy rates, which correspond in particular to the opening of the summer season and the arrival of vacationers. The opening of the Museum of Civilization in Europe and the Mediterranean (Mucem), on June 7th, which allowed for the second success of Marseille Provence 2013, with a bang, bringing together some 60,000 people during the opening weekend. The figure of 2 million visitors, announced on May 12th, has also made ​​a dramatic leap to reach 3.5 million visitors by June 30th. The same trend is observed in the city's hotel activity, with 17.4% Revenue per available room growth over the period, driven by the increase of 9.2 points in occupancy and 4.6% of the average daily rates level.

The rise in indicators at the end of the first semester allows hotel performances to slow their fall from the first half of year. Changes in occupancy have returned well above the zero mark with 1.7 point, but do not compensate for the fall of 3.4% in average daily rates during the first six months of 2013. RevPAR stands at 57.1 Euros, 0.8% less than the same period last year last. The June results also suggest a good season for Marseille hoteliers. MP2013 CEO, Jean-François Chougnet, has also stated in both the regional and national press, 86% of hotel managers rated their occupancy excellent.