April 2013, no improvement for the French hotel industry

2 min reading time

Published on 30/05/13 - Updated on 17/03/22

In April, the performance of the French hotel industry further established its position in the down cycle in March.

Average daily rates struggled to climb back up after falling last March under the pressure caused by the decrease in French buying power and budgetary restrictions of companies. Down 0.4% on the period, they don’t make it possible to make up for the 1.9-point drop in occupancy rates. The Revenue per Available Room in the Hexagon thus experienced a 3.1% drop. The moroseness spread over all the hotel categories, from Budget to the upscale. While most succeed in maintaining their average daily rates on the period, it is not enough to make up for the overall drop in occupancy rates. All markets are on equal footing in terms of evolution of their results and recorded a drop in the RevPAR of a fairly similar intensity, from 2.1% for two stars to 3.2% for four stars. The drop in hotel results occurred in all French regions. Even Paris can no longer stand up against the decrease in buying power and budgets allotted for business travel. The capital has seen the change in results of its hotels take a negative turn despite keeping average daily rates at 154.8 euros, or 1.1% more than last year. The Revenue per Available Room in Paris dropped by 0.4%. Business activity in the capital, driven in particular by the Foire de Paris, nonetheless makes it possible for the upscale segment to resist, with a 2.3% improvement for its RevPAR due to the 3% increase in its average daily rates. The Ile-de-France is floundering, meanwhile, in the depression with a Revenue per Available Room down by 3%. In the rest of France, the slump in activity is spreading. April’s bad weather prevented leisure properties from making up for the negative results of the business segment during school vacations. The provinces thus showed a 2.8% drop in their RevPAR, due to the accumulation of drops in occupancy and average daily rates by 1.6 points and 0.1% respectively.

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