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August 2019: finally a month with a softer slope for the French hotel industry

The summer return was confirmed and amplified during the month of August, even if the performances are still far from the levels of 2019. However, as in previous months, the recovery remains uneven across geographies and segments.

In August, when 4/5ths of the French hotel supply had reopened, the occupancy rate in France reached 49.0% of the rooms available (i.e. whether or not they were open to the public: this represents about 60% of occupancy in properties that had reopened).

This is of course 22.7 points less than the level recorded in August 2019 (71.7%). But while this decrease remains strong, performance is improving: in July, the occupancy rate for rooms available was only 41.8%, 34.2 points less than in July 2019. Thus, occupancy continues to grow after a recovery that began in May and July. RevPAR is also improving, from €34.5 excluding VAT in July, 54.3% less than in 2019, to €44.2 excluding VAT in August (based on rooms built), 35.3% less than in 2019 (€68.4 excluding VAT).

In France, the regions are getting closer and closer to its 2019 level and reached 61.7% of OR (based on rooms built) in August 2020, while Paris and the Ile-de-France are still in much lower occupancy levels, both in Paris (less than 17% of OR) and in the rest of the Ile-de-France (28.8%). The French regions, for their part, have benefited from the ongoing resumption of the summer vacations after a month of July that had already seen strong growth, mainly in coastal areas.

In August 2020, the Occupancy Rate jumped to 82.1% on the coast, down only 6.1 points relative to 2019, while that of the regions as a whole fell by 11.5 points. As for Paris and the Île-de-France, in addition to the fact that August is usually part of the low season due to the summer decline in business travel, the region remained very affected by a low level of leisure customers due to international tourism, which was much more limited by the health crisis.

Finally, economy and budget hotels are still significantly less affected than the upscale segments. In this month of August, nationwide, the ORs have fallen by 40.2 points compared to 2019 in the upscale and luxury segment, while the decline is only 13.6 points in the budget segment. The same is true for RevPARs, which dropped from 50.9% for the upscale hotels to 17.3% for the economy hotels.

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