Results for this month of February are up significantly. Occupancy rate, average daily rates and RevPAR are all increasing on the different hotel segments throughout French territory.
French athletes shined at the Winter Olympics in Pyeongchang in South Korea from February 9 to 25, 2018, the French hotel industry also nailed it. The month of February was punctuated by the Agricultural Exhibition and Fashion Week (Women) as well as the six nations rugby tournament.
After beginning the year with a month of January showing a RevPAR at +3.9% thanks to growth in indicators on each segment, February repeats that performance by doubling the change in its RevPAR; it thus reaches 8.0% overall. The national occupancy rate flirts with 60% and thus realizes +2.6 points growth. Average daily rates increased by +3.3% from 82.4 to 85.1 euros.
Hotel segments post strong growth in their RevPAR: by +6.0% to +8.7% depending on the range. The budget category realized +6.0% growth in its RevPAR thanks to an increase in average daily rates by +4.4%. Growth on other segments are increasingly explained by an increase in occupancy rate. The economy segment experienced a +3.1 points increase in occupancy rate to reach 59.1% and an increase in average daily rate by +2.4% resulting in a RevPAR up +8.0%. The gold medal for growth in the RevPAR this month with +8.7% goes to the midscale segment with +3.3 points growth in occupancy rate to surpasse the 60% benchmark as wall as an increase by +2.7% in average daily rates. Finally, the upscale progressed by +7.6% of the RevPAR particularly thanks to +3.4 points in the occupancy rate that reached 61.1% and secondly by an increase in average daily rates b +1.6% (or 3 euros).
Once again the City of Paris and the Paris region drive the RevPAR up,with +13.2% and +9.8% growth respectively. The two zones enjoy at least 4 points growth in their occupancy rates while Paris experiences particular growth in average daily rates (+6.8%). With slightly slower growth, the provinces show +4.7% growth in RevPAR due to combined growth in occupancy rate, +1.6 points, and an increase in average daily rates, +1.7%.
In Paris, the segments all post double-digit growth in the RevPAR resulting in an overall increase for the city by +13.2%. The economy and midscale categories are particularly performant with +16.1% and +15.0% in their RevPAR respectively; these increases are due to combined increase in average daily rates and occupancy rates. In the Ile-de-France, it is the upscale segment that produces strong growth in its RevPAR by +11.5%, explained solely by a +6.9 point increase in occupancy rate to 66.5%.
In the provinces, growth in RevPAR on the different categories are mostly homogeneous: the budget, economy and midscale segments realized changes in RevPAR by at least +5while the upscale lags behind with a +3.3% increase.
Despite scheduling of events similar to previous years, major cities in the provinces present outstanding developments in their RevPAR. On the top step of the podium is Montpellier with growth in its RevPAR by +26.2%, which may be explained by a combination of an increase in occupancy rate and average daily rates across all segments. With growth in the RevPAR by +18.2% and +18.1% respectively, Rennes and Nantes did particularly well on the budget to midscale range. Strasbourg, with its now traditional 10-day Valentine’s Day celebration attracting nearly 54,000 visitors saw +16.0% growth in its RevPAR driven by the upscale whose RevPAR was up. The double-digit change in RevPAR is also present in Lille with +14.0% to which the contemporary art fair Art Up contributed with 37,000 visitors. In Nice the Carnaval from February 17 to March 3 contributed to +12.1% for the RevPAR. Meanwhile in Marseille (+Aix-en-Provence) a match on February 23 for the Six nations tournament (France-Italy) contributed to +10.1% for the RevPAR.
France’s major cities particularly benefited the hotel industry this February 2018. With many experiencing double-digit growth in their RevPAR, they are following a good dynamic.
Already signed up? Already signed up? Already signed up? Already registered? Login here!