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May 2021: Resurgence of optimism for the French hotel industry

End of the third lockdown, reopening of bars and terraces, change in the curfew... the French have regained their freedom and the hotel industry is delighted. Hotel performances in May are better than previously and announce the recovery of the sector.

Compared to April, hotel performances in May showed an encouraging rebound. Nationally, the occupancy rate rose from 21.8% in April to 30.8%, while the PM rose from €65.7 to €72.4. As a result, national hotel RevPAR rose to €22.3 in May (from €14.3 in April).

Compared to 2020, when May also marked the end of the lockdown - although less strict in 2021 - performances are way better: global RevPar is more than 5 times higher than last year at the same time. But the hotel industry's remission is not for now: the occupancy rate is still -37.6 points below pre-crisis levels, average rate has fallen by 25.4% and RevPar by 66.5%.

Although Paris continues to be the most affected zone in May 2021, its occupancy rate has nevertheless increased by 5.1 points compared to April, showing a slight inflection. Compared to May 2020, it should also be noted that Paris is the zone that recorded the strongest evolution in terms of RevPar (x10) given the catastrophic situation that the Parisian hotel industry experienced at the beginning of the pandemic.

The Province performed relatively better, with its occupancy rate rising from 23.8% to 35.1% between April and May 2021. Similarly, the average rate has increased by 9% (€71.1 in May compared to €65.1 in April 2021) and the RevPar has therefore increased from €15.5 to €24.9 between April and May.

One of the reasons for the difference between territories is the hotel structure: the budget segment has an occupancy rate of more than 40% in May 2021, while the high-range segment, which is more represented in Paris, hardly reaches 16%.

And if the results are still far from reaching pre-crisis performances (-66.6% of RevPar between May 2019 and May 2021), they are on the right track compared to March and April 2021. The end of the third lockdown and the reopening of bars and restaurants mid-May have given a new momentum to the French hotel industry.

Will the summer of 2021 be able to keep these figures on the rise?

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