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One should stay alert in april

The month of April doesn't contradict the positive trend, which characterises the French hotel activity, thanks to the upscale categories, for the last twelve months (+7,4%). However, the rhythm of growth has slow down last April. Yet, the RevPAR increases by 5.2%, thanks to a good rise of the average daily rates. The Easter vacations and the preelection period have, on the other end, caused a freeze in the consumer's demand over the previous year. The occupancy of Economy hotels has suffered first from this quieter period, hopefully counterbalancing this slow down by average daily rates in progress.

With a revenue per available room rising by 5.2%, the month of April is a still good month for the French hotel business, even though it is less active compared to the growth posted in France during the previous months, and compared to the performance posted at the European level. The midscale and upscale segments are doing pretty well with performances close to the average of the last twelve months. The 3-star category is even more dynamic with a RevPAR growing by 6.5%, followed by the 4-star category with a growth of 5.3%. These two categories have seen their occupancy rates and average daily rates progress in conjunction. The more we look down in hotel categories, the weakest the performance are. With an occupancy rate slightly decreasing (-0.4 point), the Economy segment has, nevertheless, managed to achieve a good performance at the end of the month (+4.4% in RevPAR) due to a strong progression of the average daily rates (+5.0%). The margin for growth in tariffs in the 0-1-star category is more or less the same (+4.9%), but the occupancy rates of the Budget segment have badly hurt the overall performance. It allowed the category to progress by “only” 2.7%, if the two categories are joined together.

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