Parisian hoteliers missed their Christmas week with RevPARs dropping by nearly 20% on some nights, but the decline in performance seemed to have come to a halt about ten days ago. Will hoteliers be able to maintain this positive momentum after the violence of this weekend?
After a year 2018 that was positive in terms of hotel performances, Paris's industry players felt like they were floating on a cloud. That was before all the images of violence during protests appeared, draining a good year of its success and returning hotel performances to darker times.
The organization of international events and the rise in tourist arrivals in the capital stimulated the enthusiasm of the sector's professionals an allowed Paris to post record results. 2018 ended brutally, leaving hoteliers bitter after they had fought hard to regain this positive.
So, while European capitals celebrated Christmas – RevPAR up in Berlin and Vienna by 22.1% and 30.5% respectively on December 25 – Paris hoteliers reported even worse results than in 2017.
March: after the rain, fine weather?
2019 started poorly and January's Fashion Week did not boost revenue. In the first days of March, properties in Paris Intra-muros dropped their prices by an average of -1% to -6.7% compared to the previous year. Tuesday, March 5, RevPARs plunged -21 %.
Results improved from March 10 mars when an increase in occupancy and prices boosted RevPARs. For the first time this year, there was an increase by more than 20% (March 11) and results remained positive thereafter.
While images of violence in Paris during protests had become more rare, "The Yellow Vests Act XVIII" - which saw the burning of the brasserie Le Fouquet’s - were widely broadcast by the media. Will the vandalism of shops on the Champs Elysées of this Saturday, March 16 have a new impact on hotel performances?
Paris's luxury segment posts terrible results in March appear to already respond to that question: on Tuesday RevPARs were down -16%.
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