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April 2020: the Covid 19 pandemic knocks out hotels in France

The first month of total lockdown following the Covid 19 pandemic will have been costly for hoteliers based in France. They are no different from their European neighbours, with extremely low or even zero performance in specific segments.

After a month of March in which RevPAR was down -66.2%, April 2020 shows -96.5% RevPAR compared to April 2019. A vertiginous fall which positions the income per available room at 2.20€ HT for a OR at 4.4%.

It is the budget properties that are the least badly off with an OR at 9.4%, -61.1 points compared to April 2019. They were able to accommodate care staff and other workers needing housing close to their place of work. However, their RevPAR is far from profitability at €3.80 excluding VAT, i.e. -37.9%.

The rest of the segments are in line with this, with -67 OR points on the economy (3.8%) for a RevPAR that plunges by -95.8% or €2.1 excluding VAT. In the midscale segment, OR fell by 2.1% (-69.6 points) and RevPAR by 98% (€1.5 excluding VAT). Finally, the upscale segment, where almost all properties were closed, recorded RevPAR of €1.3 excluding VAT for an OR of 0.8% (versus 73.9% in April 2019).

Performance close to zero in April 2020 has ended up plunging hotels into negative territory, affecting the performance of the last 12 months, which is now in negative. -8.8 points in OR (60.3%) and -11.3% in RevPAR (€57.50 excluding VAT).Once again, the upscale segment suffered the most, deprived of international customers, with a 10.3-point (63.1%) decline in OR and an 11.8% decline in RevPAR (€131.40 excluding VAT), despite the fact that the average price remained stable at 2.6%.  The midscale hotel sector was the second hardest hit, deprived of business customers, with a loss of 9.2 points of OR (60.9%) and a RevPAR of €65.6 excluding VAT (-11.6%).

Not surprisingly, it is the capital city that plunged the most in terms of performance, with the highest concentration of upscale hotels and business customers. The flagships of the destination remain deserted. The upscale segment has a RevPAR loss of -83.1 points of OR (1.1%) and a RevPAR of €1.2 excluding VAT. The midscale segment has a RevPAR loss of -99.3% (€1.4 excluding VAT), the economy -99.1% RevPAR (€1 excluding VAT) and the budget segment is the only one to exceed 2% of TO (2.2%).

Paris Region, excluding Paris, fills its properties at 8.5% (-69.6 points) for a RevPAR of €4.40 excluding VAT. The province reaches an OR of 4% (-62.6 points) for a RevPAR of €1.9 excluding VAT (-96.3%).

However, the month of May, heralding a slow recovery, saw a slight improvement in performance.Out of the 13 cities that underperformed the least, Calais is close to 40% of OR for a RevPAR of €21.30 excluding VAT. The recovery is timid with, for example, a RevPAR of €4.4 excluding VAT in Paris, but nonetheless on the rise.

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