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November 2019: Paris makes a comeback thanks to the upscale hotel range

French hospitality indicators are positive again this month. Both occupancy and prices are on an uptrend, indicating renewed activity. Results are especially driven by the upscale range.

Performances are back up this November. Results are positive for the national occupancy rate (OR) which is up +0.1 percentage point. Average daily rate (ADR) regained growth at +1.3%, causing the RevPAR to climb slightly by +1.5%.

Nearly all segments are back in the green throughout France: budget OR remained stable compared to November 2018 (+0.0 pts), meaning 63.4%, midscale is also stable (+0.3 pt, or 66.1%) and upscale saw occupancy grow (+1.2 pt), revealing the best national result (71.3%). Only the economy segment is down slightly, with a loss of -0.4 percentage points bringing its occupancy rate down to 65.6%.

In terms of prices, budget saw the strongest growth in ADR this month by +2.2%, climbing from 46.40€ ex-tax to 47.50€ between November 2018 to November 2019. The economy and midscale increased their ADR by +1.0% (72.30€ ex-tax) and +1.1% (104.70€ ex-tax), respectively. The only ADR to stagnate is that of the upscale at +0,2%, bringing it from 183.50€ ex-tax to 183.90€ ex-tax.

This does not prevent the same segment from achieving the second best growth in RevPAR by +1.9% (131.20€ ex-tax). Best growth nonetheless goes to the budget segment with +2.2% (30.10€ ex-tax). Midscale follows with RevPAR up +1.5% (69.30€ ex-tax). The economy segment comes in last due to a drop in occupancy and is able to increase its revenue per available room by only +0.4% to reach 47.40€ ex-tax.

Paris intra-muros reveals the best growth in occupancy. With a +0.5 point increase, the market posting the  best OR across the entire panel continues its climb to reach an average 83.2% across Paris's entire hotel supply. The ADR evolved +0.7% to reach 160.80€ ex-tax and its RevPAR increased +1.3% to reach 133.70€ ex-tax.

More exactly the upscale segment in Paris is driving results upward, with +2.0 percentage points for the occupancy rate - record growth in OR this month. Despite an average daily rate down by -0.3%, the segment succeeded in achieving better growth in its RevPAR (+2.2%) which reached 193.40€ ex-tax. The upscale boutique hotel supply revealed growth particularly for properties with small capacities (+1.9 percentage pts for the OR) while mid-size properties (35-50 rooms) gained few new clients (+0.4 pts) and those with high capacities lost (-0.1 percentage points for 50-80 rooms and -0.8 percentage points for properties with 80+ rooms).

As for the Provinces, France is divided. On the one hand, the occupancy rate at mid- and upscale hotels progressed by +0.9 percentage points (59.7%) and +1.1 percentage points (60.5%), on the other segments in the entry range stagnated at -0.3 percentage points (59.6%) for the budget range and +0.0 percentage points (61.1%) for economy. The ADR evolved only in the budget segment (+1.4% for 44.50€ ex-tax) and midscale (+1.1% for 92.00€ ex-tax). Budget and upscale lowered their prices by -0.8% (65.80€ ex-tax) and -0.3% (144.40€ ex-tax) respectively. Despite this, the upscale range drove its RevPAR up +1.5%. The best growth may nonetheless be found in the mid-range, with growth in RevPAR by +2.7%. At the bottom, the RevPAR is stagnant like its occupancy rate: +0.9% for budget and -0.7% for economy.

France is all the more divided on the scale of its cities: those in the north are in decline while those in the south are on the rise. Mediterranean cities such as Nice (+2.8 pts), Montpellier (+2.0 percentage points), Marseille (+1.2 percentage points), Cannes (+1.2 percentage points) and Toulouse (+1.0 percentage points) all gained market shares in November, while others, such as Strasbourg (-1.3), Rennes (-2.4 percentage points), Lille (-5.0 percentage points) and Rouen (-6.6 percentage points) lost.

The slump in growth is evident above all in the Ile-de-France region (outside Paris). With a loss of -0.6 percentage points for occupancy, it is only able to maintain its RevPAR on an uptrend (+2.7%) through an increase in ADR (+3.5%). All ADR are up, while the only the budget segment was able to increase its OR in the region, by +0.4 percentage points to reach 74.9%.

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