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France: a month of September in keeping with better years

Higher occupancy (76.6%) than that of September 2008 (76.0%), fatidic month when the world’s economy began its descent to hell in the in the midst of Lehman Brothers’ bankruptcy; average daily rate (93.5€ versus 89.5€) and RevPAR (71.6€ versus 70.6€) higher – excepting inflation – than those September 2007 when the French hotel industry beat records thanks to the World Rugby Cup: the month of September 2010 does more than cancel the last year’s sad performance, when the RevPAR dropped by -7.4%. Better: the French hotel industry saw its two main motors boost their power to reach a very high monthly cruising speed. Occupancy in Paris’s hotels thus reached 91.0%, authorizing growth in the RevPAR by +26.0%. At the same time, while regaining an occupancy rate higher than 80%, the 4* category regained all its breadth of reach in terms of rates (+12.6%) driving room revenues up +24.1%. This breath of air was felt the same way across all hotel segments, while remaining within the framework of their positioning. The RevPAR of the midscale grew by 13.1% and the increase of the RevPAR on the budget categories remained within a range of 4% to 6%.A lthough it did not benefit from the arrival of the more profitable international clientele as much as Paris’s hotel industry, the hotel industry in the provinces also benefited from the acceleration brought on by the 4* category throughout the month to register growth in its RevPAR by +5.5%. All the regions in France are on an up trend or at least stable with exception to the Midi-Pyrénées which was penalized by Toulouse’s hotel industry (-3.2%). While the Ville Rose is regaining strength in terms of occupancy (+1.3pt), its business hotels continue to suffer from Corporate contracts negotiated at the height of the storm and the absence of the Congrès des organismes HLM that will be held in Strasbourg this year. The Alsatian capital, which has been on a positive growth track for several months, took advantage of this and produced results almost on a par with Paris by recording growth by + 26.1% last September. Like Strasbourg’s hoteliers, hoteliers in most major French cities are satisfied with the month. With a 17.3% increase, Nice is leading the way for a pack consisting of Bordeaux, Grenoble, Lille, Lyon and Nantes which posted growth between 8% and 12%. Marseilles, meanwhile, is down significantly (-0.5%).

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