France: year-end onset of improvement

1 min reading time

Published on 05/01/10 - Updated on 17/03/22

France's hotel industry is riding a rollercoaster. After a reasonable summer, followed by a catastrophic October marked by a historic double-digit drop in its RevPAR across all categories, the month of November ended with less disappointing results. The drop in RevPAR was limited to 6.3%, meaning a less pronounced drop than in 2008 (-7.1%). Noteworthy is the average daily rate that rose (+0.4%), which had not been observed since the first month of the year 2009. Growth on the 2* was fairly visible (+3.1%), even if it was offset by a drop in occupancy (-5.4 pts). As always since the beginning of the crisis, the average daily rate of the budget segment proves to be impermeable to the fluctuations of occupancy. Which is, of course, not the case for the 4* category. The occupancy of hotels once again had to be maintained by a flexible rate policy in order to adapt to the demands of Business clientele. Nonetheless, like the midscale segment, the upscale posts better results in November than on twelve months rolling.

The difference between results in Paris and the provinces was limited in November, but to the disadvantage of the French capital, which is more sensitive to the global economy. Paris benefited from the benefic effect of the biennial trade fair Batimat. Although this salon, visited by more than 300...

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