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February: no snow, but good overall results

Skiers were not so lucky in February, but hotel chains nonetheless had a good month. Paris and the provinces reported good occupancy rates on all segments... and rates rose as a result.

The economic situation is better but still there is nothing to be done about the weather conditions. The lack of snow that ski resorts have been suffering from since December could be felt once again in February. Whence disappointing occupancy rates in mountainous regions. Nonetheless results varied from one resort to the next. In the Pyrenees the situation was bad while in the Alps, the trend was a little more up. Cédric Paul, operations manager for Mercure Chamonix Centre prefers to talk of it as “a slight drop, not alarming”. This drop would be due more to French clientele. “In election years we always observe a slight drop in occupancy and this season is no exception,” he observes. “But foreign clientele remain very faithful. Bad weather conditions did not make them rebuke.Throughout the territory, it is the midscale segment that shows the strongest growth in its revenue per available room. The average daily rate in the category is up, but it is above all occupancy that has pulled results up (+ 3.9 pts). This renewed affluence may be explained by the return to good health of the 4*: with a return to high rates, the upmarket is no longer poaching in the 3* territory... More generally, all segments are making progress with regard to rates, and all (except 0* which saw a slight drop) are seeing their occupancy rate improve over 2005... A return to growth over the last twelve months resulting in a cumulative global RevPar up +6.5%.And it may also be observed that increasing numbers of seminars are being held during holiday periods.” It must also be added that the amount of sunny days partially compensated for the lack of snow in the hearts of vacationers.Moreover, just about everywhere in France, February’s indicators were up, leading to a global RevPar up by 9.3%. In Paris, the month was good thanks in particular to the room rates in the 4* segment and, once again to the loyalty of international clientele whose attraction to the Capital is unfailing. On the business segment, some upmarket hotels nonetheless experienced some disappointment. “While it wasn’t bad, the month could have been better: the fashion trade fair Promovision made the mistake of happening during the school vacations, and thus drew smaller volumes of nights than it should have without the bad luck with the calendar... Occupancy is down slightly, but a very moderate increase in average daily rate helped set the balance. In terms of international clienteles, the mix was classic for our hotel,” outlines Emmanuelle Gompel, commercial manager of the Radisson SAS Champs Elysées.Throughout the territory, it is the midscale segment that shows the strongest growth in its revenue per available room. The average daily rate in the category is up, but it is above all occupancy that has pulled results up (+ 3.9 pts). This renewed affluence may be explained by the return to good health of the 4*: with a return to high rates, the upmarket is no longer poaching in the 3* territory... More generally, all segments are making progress with regard to rates, and all (except 0* which saw a slight drop) are seeing their occupancy rate improve over 2005... A return to growth over the last twelve months resulting in a cumulative global RevPar up +6.5%.

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