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French hotel industry - What a wonderful month of May !

It is of no surprise that the international economic horizon has been gloomy for the past few months, but until now there is no sign of a conjectural drastic change. France stays an attractive destination. If March and April’s performance were somewhat half tinted, May does not justify any pessimistic prevision. The French hotel industry shows an increase in RevPAR of 11.2% compared to results monitored in may 2007. Occupancy levels rise to 3.2 points to reach 70% across categories. Average prices keep the same pace (+6.4%). For the last 12 sliding months, overall revPAR rises 9.3%.

The excellent performances registered du-ring the bank holiday breaks contribute to explain the good results in May. In 2007, the presidential election in the middle of the 8th of may weekend did not encourage travelling. This year’s calendar, with the weekend prolonged by the Pentecost’s Monday, permitted to keep the customers during a further overnight on sunday night. During the 1st and 8th weekends, RevPAR shows a 21% increase on average thanks to a strong growth in occupancy rates. Intermediary categories (2* and 3*) are uplifting the overall performances. If occupancy rate within 3* is always lower than the other categories, its RevPAR recorded the best growth (+13.5%). Nevertheless, tourists did not desert the upscale hotel industry. Hence the 4* category has been particularly high, above 75% with an increase of 2,9 points.

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