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Trends

October 2018: France's hotel industry continues along its trajectory

The French hotel industry posts results that are up, reflecting the year's positive trends .

With a RevPAR up by +12.4% in October compared to the previous year, French hoteliers post one of the strongest increases in Europe. This performance is part of this year's trend that is marked by an increase in prices (Year To Date: +5.5%) and occupancy (Year-to-Date: +1.5 point).

After the upscale segment, the midscale became the growth acceleratorbehind ADRs with an increase in October by +10.7%, followed by the upscale (+8.9%). The economy segment posted the strongest increase in OR (+2.7 points) contrary to the budget segment which, due to the restructuring of its supply, is stagnating this month (+0.3 points).

Paris pursues price growth

The Paris Motor Show paired with the Motorcycle show saw over one million entries, for a stable figure with respect to the previous edition held in the capital in 2016. Paris proper once again surpassed a 20% increase in RevPAR in October, driven by the increase in prices (+16.7%). With an occupancy rate up 3.4 points (88.7%) and one of the highest among European capitals, the influx of visitors benefited the entire city that saw its occupancy rate grow by 4.6 points (to 85.8%). The latter also sees its average daily rates soar (+15.7%) and its RevPAR grow by more than 20%.

These good results are part of an established trend for the capital: thus Year-to-Date in the Greater Paris Region average daily rates grew by +7.9% driven by occupancy rates up (+3.8 points) that had a strong impact on its RevPARs which increased by 13.3%.

Lyon, Rennes and Bordeaux are dynamic 

This month Lyon posted a 15.0% increase in its RevPAR driven by a leap in prices (+6.9%) and occupancy (+5.5 points). Several events led to these hotel performances including the 10th anniversary of the Festival Lumière, the Run in Lyon race (34,000 runners and a two-day European summit).

An established trend since the arrival of the TGV, average daily rates in Bordeaux and Rennes continue to grow. Bordeaux saw strong development in its hotel supply which also saw a 2.8% increase in its average daily rates and Rennes saw them soar by +16.7%, making its RevPAR flirt with 20% growth. With a +10.5% increase in its RevPAR since the beginning of the year, Rennes is one of the cities with the strongest growth in France.

Other cities at a standstill

Last year Strasbourg celebrated 500 years since the Reform for the "Protestants en fête" celebration that welcomed 8,000 visitors; this year Strasbourg's hoteliers experienced the backlash with a drop in occupancy by 5.9 points leading to a drop in RevPAR (-2.7%).

Cannes and Nice also saw their OR drop by 3.2 and 0.8 points. The latter succeeded in increasing its RevPAR (+1.5%) which was driven by an increase in average daily rates (+2.5%) contrary to the city of La Croisette which lost 4.8% in its RevPAR.

Finally Lille once again saw its results drop after a mitigated September: its OR dropped 2.1 points and prices fell by 2.2%. Across the year, the RevPAR in Lille hardly moved (+0.3%)

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