If 2017 was the year of the rebound in terms of occupancy, 2018 is the year of rising daily rates. French hoteliers are taking advantage of this new dynamic to recover and even exceed the ADR levels recorded in 2015. With a mixed start to the year due to the demonstrations, will 2018 have launched a new path to prosperity or marked a golden age that is already over?
7.3% increase in RevPAR in 2018 compared to 2017: this figure will remain significant in the annals. French hoteliers had to wait two years after the attacks to see all their performance indicators rebound. Indeed, the previous year, ORs certainly improved (+3.3 points) but the ADRs were sacrificed once again (-0.3%).
2018 marks the break with this complicated period experienced by all hotel operators by recording both an ingrain occupancy (+1.2 points) and in average daily rate (+5.3%). Average daily rates for each segment increased, with some of them emerging on top, such as mid-scale (+5.0%) and high-end (+4.7%). The return of international customers with strong purchasing power and a national economic situation that is improving have benefited hoteliers in these segments. May 2018: The French hotel industry absorbs the strikes
The budget segment recorded a slight drop in occupancy (-0.3 points), reflecting a trend over several years in which its ORs have been lower than the other segments.
In Paris, the trend of falling prices reversed in 2018 with an +8.5% increase this year. The midscale segment recorded double-digit growth (+10.3%) with attendance up +2.8 points. While the high-end segment gained +9.6% in RevPAR, the economy segment posted the strongest performance with RevPAR growth by +14.7%..
RevPAR in the Ile de France region grew by 12.0% thanks to a positive economic environment and benefiting properties specializing in the accommodations for business customers. The hosting of the Ryder Cup golf tournament boosted the performance of high-end hotels, with a +13.5% increase in RevPAR this year. While all segments are growing this year, the budget segment is showing weaker growth due to an occupancy rate that is up by only +1.6 points, which is lower than the regional average (+3.6 points).
In the provinces, arrivals of professionals stabilized (+0.2 points) in 2018. The increase in their RevPAR (+2.9%) was driven by rising average daily rates (+2.5%). The boom in some urban areas and the strong return of the Côte d'Azur have benefited the upscale market. This segment achieved the best performance thanks to a traffic that surpassed +1 point growth (+1.3 points) and an increase in prices (+2.4%). The budget segment saw its occupancy decline (-0.6 points) but this was offset by a sharp rise in prices (+3.8%).
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