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November 2017: double-digit growth for France's hotel industry

With a fifth consecutive month of growth in RevPAR this November, France’s hotel industry appears to have turned over a new leaf after the negative consequences of the events of 2015 and 2016. Paris and the Paris region are particularly dynamic as are certain cities in the provinces.

In this season when the first Christmas markets are opening in France, when the biggest photography exposition in the world (Paris Photo) opens and the biggest event dedicated to video game in France (Paris Games Week), when Batimat is held in Paris, the hotel sector shows impressive growth.

The global RevPAR of the French hotel industry made strong progress by 11.7%. Each category of chains and independent properties in the hotel industry posted double-digit growth. Occupancy rates increased by 4.8 points across all segments while average daily rates rose by 3.6%.

In France, the upscale category grew the most with an increase in RevPAR by 12.2%. This result is primarily due to a 5.5 point increase in occupancy rate from 62.4% to 67.9% between November 2016 and further to an increase in average daily rate by 3.1%, from 168€ to  179.3€ during the period.

Overall results for November were driven upward by the Ile-de-France region  (outside Paris), which saw increases in its occupancy rate by 7.9 points, average daily rate by 5.1% and RevPAR by 18% over November 2016. In this area, budget and economy segments posted good results: 18.3% and 20.4% increase in RevPAR respectively.

The provinces saw a more moderate increase in occupancy rate (3.8%) as well as room rates up slightly (1.6%). In this region the upscale segment is the only one that experienced double-digit growth by 11.7%. In Nice, results contrast sharply with last year’s results. The city offers another image in terms of figures: 19.9% increase in RevPAR particularly thanks to higher occupancy. Nice saw its midscale categories bounce up thanks to an occupancy rate up by 5.8 points and a RevPAR up by 15.7%. The upscale follows a similar trend with an occupancy rate up by 9 points and a change in RevPAR by +24.3%.

Major cities in the northwest and southwest of the country also follow this evolution such as Rennes (+12.3% RevPAR), Nantes (+13.5%), Marseille Aix-en-Provence (+13.5) and Grenoble (13.5%).

Strasbourg is down by -4.4% in its RevPAR and prices have slumped on all segments except the budget segment.

Generally speaking, France’s hotel industry has been doing better for the past few months already. The three performance indicators have been in the green overall throughout the country: in Paris, Ile-de-France as well as much of French territory. The French hotel industry is ready to continue on this trajectory.

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