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France: July marks the start of a good summer

Continuing the élan of good performance recoded in the previous months, July 2010 reached a new level. The two growth engines remained active: occupancy rate improved by two points and growth in average daily rate by some 6%. This winning combination makes it possible to flirt with 9% growth in Revenue per available room. Since March 2010, a new cycle has begun. The significant improvement in occupancy rate made it possible to accelerate a return to average rates that is more in keeping with the reality of hotel offers. This recovery, whose dynamism may be explained by more efficient and more refined policies in terms of Revenue Management, is sensible in the upscale categories. It is the first phase of recovery for the cycle. Thanks to long term growth of average daily rates, by autumn we may expect to notice that the crisis has been absorbed. Month after month, one idea is becoming clear: the year 2010 should allow hoteliers slowly but surely progress toward the levels of the best years.A bright sun on Paris’s hospitality sector. International clientele, Leisure and Business alike, are back in this month of July which continued to benefit from both sources of clientele. Also destination greatly appreciated by the French, the capital’s occupancy is up by 5 points. The luxury segment, meanwhile, benefited from earlier arrivals of Middle Eastern clientele as the period of Ramadan was earlier this year, and this element had a hand in an overall growth of average daily rates by 8%. Nice, where average daily rates are up by 15%, also benefited from the effect of an earlier Ramadan, which may produce an adverse effect on August’s results however. More globally, for this first summer month, France’s two shoreline areas of the Riviera and the Atlantic were favored by vacationers who shied away more than ever from the bad weather that regularly torments the coasts of Brittany and Normandy, which were down significantly. On the whole, the hotel sector in the provinces remained more stable in terms of occupancy (+0.9 pts) but its average daily rates are on an uptrend (+ 4.8%). Several cities stood out in July such as Nice, as we saw, but also Bordeaux, Lyon and Toulouse.

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