
Impressive Occupancy Rates (OR) and Average Daily Rates (ADR) yielded an 11.3% growth rate in RevPAR in the luxury hotel market during the French Riviera’s most acclaimed international rendezvous.
Market studies from MKG Hospitality illustrated the irrefutable relationship that the annual Cannes Film Festival maintains with the hospitality industry, especially the luxury segment. In the 12-day period that the festival took place (16 May to 27 May 2012), OR grew by 4.7%pts to reach 94.4%, whilst area hoteliers had enough leeway to increase prices by 5.8%, reaching 981 Euros (VAT incl.). RevPAR therefore increased by a remarkable 11.3% to reach 926.2 Euros.The opening ceremony on 16 May commanded the highest room rates during the festival’s 12-day span, averaging an epic 1,012.20 euros for a night at one of the Cannes’ most glamorous establishments, attracting Hollywood’s elite as well as VIP’s in the film industry from around the world. Hoteliers witnessed the highest jump in OR on the day of the closing ceremony (27 May), increasing 14.8%pts when compared to the closing ceremony the previous year. However, this was also the only day that saw a noticeable drop in ADR, as hoteliers lowered rates by 6.8% compared to 2011’s closing ceremony. This 11.3%pt rise in RevPAR coincides with INSEE reports that French gross domestic product was stagnant from January to March, therefore demonstrating the important role the hospitality industry plays in a revenue-generation event, like the Cannes Film Festival. Whilst the cinema industry is indeed in the spotlight, the hospitality industry remains an undeniable factor in the Cannes Film Festival’s success, providing an infrastructure the city needs to host an upscale clientele that come from around the world.Georges Panayotis, President of MKG Hospitality, states, “This 11.3% rise in RevPAR in the luxury hotel sector during the Cannes Film Festival is testimony to the unquestionable relationship the French hospitality industry has with a globalized market for events. Despite a sullen international economic context, the luxury sector’s excellent results during the 2012 Cannes Film Festival clearly illustrate the French hospitality industry’s resilience.”

