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In April, the City of Light Glitters

This month was as radiant as the social future was glum for France’s capital, which held its course and even saw arrivals it thought would desist because of the month’s events.

The ambience has been good since the beginning of the year for Paris’s hotels, and April did not confound the trend. "We have truly been feeling a recovery over the past six months, even on the American market,” confirms Nathalie Seiler, director of the Radisson SAS Champs- Elysées. “The social-political unrest that upset the city for some time did not negatively impact us. Business and leisure clientele are both showing progress". And yet, Easter weekend was a weak point in the otherwise very satisfactory month for the capital, with a RevPar down by 4.7% with respect to 2005. On this three-day weekend, tourists flocked to the beaches: the Loire-Atlantic and French Riviera first and foremost. Nonetheless, this very temporary drop needs to be put into perspective with the global RevPar for the month in Paris that leapt by 12.5! By chance, the spring holidays fell much earlier than in 2005, right in the middle of April, which helped hotels that rely mostly on leisure clientele. In this regard, the arrival of foreign tourists that could be observed (Americans, English, Asians as well as many Russian and Polish groups) is a good omen for the summer season: heavily covered and sometimes even dramatized abroad, Paris appears to maintain its standing on the international scene as a capital of tourism more than ever. And the cherry on top: even the MICE segment did well despite a calendar that worked against it. “Despite a fortnight of school holidays, activity with business clientele was very good, which came as a pleasant surprise. There was an increase in seminars, with more foreign businessmen than in the same period a year earlier,” rejoices Stéphanie Vergnet, commercial director at Sofitel Paris Bercy. Paris’ upscale hotels may thus rejoice over having attracted clientele without making any massive discounts. All segments post a RevPar showing double-digit growth, with exception to the hard budget segment that nonetheless posted very good growth (+8.1%) with an occupancy rate at 91.5%!The mid-scale is April’s big winner: boosted by the strongest growth in OR within the Parisian hotel industry (+9.1 pts), it extracts itself from the difficulties that were characteristic of it not so long ago thanks to clearer rate positioning with respect to 4* which did not have to drop its prices so much, and so did not encroach upon the 3* territory. Result: the RevPar for the category soared to +14.3%. In all, the average daily rate grew by 3.2%, which, combined with a booming occupancy rate (+ 6.7 points), explains the breakthrough of the revenue per available room enjoyed by the city’s supply. In the mid term, on 12 rolling months, all is go for Paris’s hotels with an occupancy rate up by 3 points to 75.1% and a RevPAR up by nearly 7%. Now, rather than betray the uptrend, May should confirm it. Boosted by the final of the Champion's league and a major cardiology congress, Paris even posted no vacancy for a few days...The mid-scale is April’s big winner: boosted by the strongest growth in OR within the Parisian hotel industry (+9.1 pts), it extracts itself from the difficulties that were characteristic of it not so long ago thanks to clearer rate positioning with respect to 4* which did not have to drop its prices so much, and so did not encroach upon the 3* territory. Result: the RevPar for the category soared to +14.3%. In all, the average daily rate grew by 3.2%, which, combined with a booming occupancy rate (+ 6.7 points), explains the breakthrough of the revenue per available room enjoyed by the city’s supply. In the mid term, on 12 rolling months, all is go for Paris’s hotels with an occupancy rate up by 3 points to 75.1% and a RevPAR up by nearly 7%. Now, rather than betray the uptrend, May should confirm it. Boosted by the final of the Champion's league and a major cardiology congress, Paris even posted no vacancy for a few days...

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