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2017: Strong recovery of the French hotel industry

In 2017, the French hotel industry generated an increase in performance on a national level. All hotel categories are affected by this rebound in demand. The resurgence of tourists, especially international customers, confirms the country’s tourism potential. The sector’s good momentum bodes well for the years to come.

After two complicated years, France’s hotel industry has regained momentum and is recovering from terrorist attacks on its territory and in Europe. The occupancy rate at properties was 67.6% for the year 2017 on the whole, an increase by 3.3 points. The average daily rate stabilized at -0.3%, compared to the decline in 2016 by -3.3%. These two indicators combine to produce 4.9% growth in RevPAR (revenue per available room) compared to 2016. Properties in the midscale category posted a 5.7% increase in RevPAR. The upscale hotel business experienced similar growth, with a 5.1% increase in RevPAR, due to a 4.0% increase in the occupancy rate. Average daily rates were down in all categories, except budget (+0.1%), with a drop by -0.7% in the mid-range segment, -0.8% in the upmarket segment and -0.6 in the economy segment. This situation is due to the return of international customers with strong purchasing power and a drop in prices that favored an increase in occupancy. Activité hôtelière Activité hôtelière

The period of mistrust in the destination is over. Following a drop observed in the first months, the trend reversed itself in August under the impulse of hotels in the capital: Paris posted an increase in its RevPAR by 8.6% over 2016. This result may be explained by an increase in occupancy rate at Paris hotels by 6.3 points and an average daily rate that stabilized (-0.1%) to settle at 154.7€ (excl. taxes).

Activité hôtelière

The Île-de-France, where activity relies more on business clientele, also posts improved results with a RevPAR up by 6.7%, due to an increase in occupancy rate by 5.8 points combined with a drop in average daily rate by -2.0%. All categories, except budget hotels, are affected by this price drop. Activité hôtelière

In the provinces, the hospitality industry continued to produce good results. Sector professionals experienced an increase in their RevPAR by +2.5% which may be explained by a rebound in occupancy rate (+2.0) combined with only a slight drop in average daily rate (-0.6%). All hotel categories benefit from this renewed activity. Hotels in the up- and midscale categories benefited from international arrivals, reporting occupancy rates up by +2.6 points and +2.5 points respectively. Budget and economy categories, meanwhile, report progress by +1.9 points and +1.4 points respectively. The year 2017 produced a certain rate stability in the budget and economy categories, but a significant drop in rates for upscale hotels (-2.0%).



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