French regions generally did well in 2015 in terms of hotel performance, galvanized by the organization of several events. The consequences of last year's terrorist attacks started to affect occupancy rates in December.
Despite the turmoil of its hotels in 2015, Île-de-France remains by far the French region that carries the most weight in terms of revenue, representing 35.6% of the total. Provence-Alpes-Côte d'Azur comes next, accounting for 14.8% of the turnover, followed by Auvergne-Rhône-Alpes (10.6%), Languedoc-Roussillon-Midi-Pyrénées (7.8%), Aquitaine-Limousin-Poitou-Charente (6.3%), Alsace-Champagne-Ardenne-Lorraine (5.1%), Corsica (3.3%), Brittany (3%), Normandy (2.7%), and Centre-Val de Loire (2%).
Hotels in the regions concluded 2015 rather positively, after several events noticeably boosted their activity. Most areas, with the exception of Normandy and Île-de-France, registered a positive change in their annual results.
The strongest increase in Revenue per available room (RevPAR) was registered in Provence-Alpes-Côte d'Azur (+6.8%), where activity during the summer season proved particularly dynamic thanks to the sojourn of the King of Saudi Arabia and his delegations. Combined with favorable weather, the positive impact of the Ramadan calendar, and current difficulties encountered in "sunny" North African markets, the region posted record growth last July (close to +30%), driven by the luxury segment. Corsica also followed a positive dynamic in 2015, with significant improvement in performance for its hotels during the shoulder season, before the impact of national circumstances in December.
Among other things, Brittany benefited from the "Tide of the Century" (+27% in RevPAR last March) and sustained demand during warm days (between +3% and +10% every month from April to September). These trends also supported growth in performance in Pays de la Loire, albeit more slightly.
As it does every two years, the organization of the biennial international exhibition Vinexpo in Bordeaux boosted regional hotels (+15.6 in RevPAR in the region Aquitaine-Limousin-Poitou-Charentes in March, 4.9% in yearly change). With growth in its performance, Bordeaux and its suburbs drove businesss and positioned itself as one of the most dynamic tourism cities in France.
The Auvergne-Rhône-Alpes region had got the year off to a good start (+21.7% in January), under the combined effect of the arrival of snow at ski resorts and the organization of the biannual SIRHA in Lyon, but then dove in December (-15.2%), particularly in the region of Lyon under the combined effect of the terrorist attacks (cancellation of the of the Festival of Lights in Lyon) and the absence of the biannual exhibition.
The Alsace-Champagne Ardenne-Lorraine was also on a fairly positive trend in 2015 before slipping again in December (-5% RevPAR), further to the impact of the Paris terrorist attacks on those Christmas markets, that were not cancelled. Normandy (-2.5% RevPAR in 2015) suffered an unfavorable comparison to 2014, the year of the 50th anniversary of the Normandy Landing and the organization of the Equestrian Games: a base effect thus explains the significant decreases recorded in the region in June, August and September.
It may be observed that if more than half of French regions have thus posted a slump in their results in December, activity in Brittany, Normandy, Pays de Loire, Centre-Val de Loire, and Nord-Pas de Calais-Picardie remained positive on teh last month of the year. The Nord-Pas de Calais-Picardie benefited from the structural growth of Lille, which had got on the right track in 2014, which was a year of stagnation fro France's hospitality industry. In the Centre-Val de Loire and Languedoc-Roussillon-Midi-Pyrénées region, month to month growth remained moderate.
Find all the activity and supply figures by region, 50 main departments, major agglomerations, and rankings of operators in the "European Hospitality Report" which offers monthly activity data for primary cities in its "Trend report".
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