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July 2020: Scattered recovery for French hotels

The decline in hotel activity was still significant in July, but the loss was less than in previous months, although there is still a long way to go. While Paris and Ile-de-France remained empty, the regions performed better.

In July, the occupancy rate in France stood at 50.9% of rooms available for sale and, given the proportion of closed hotels (still 2 out of 10 nationwide), at 41.8% of rooms built. This is 34.2 points below the level recorded in July 2019. But if this decline remains strong, it should be put into perspective: in June, the occupancy rate of rooms built was only 24.5%, or 56.6 points less than in June 2019. Thus, occupancy continues to rebound after a recovery that began in May and June. RevPAR is also improving, from €17 excluding VAT in June, 81.7% less than in 2019, to €34.5 excluding VAT in July (based on rooms built), 54.3% less than in 2019 (€75.5 excluding VAT).

 

In France, the Province is getting closer to its 2019 level and reached 51.9% of OR in July 2020, while Paris and the Ile-de-France region, which are more dependent on foreign clients (55% of overnight stays, compared to 35% in France as a whole), are still in much lower occupancy levels, both in Paris (less than 16% of TO) and in the rest of the Ile-de-France region (27.3%). The French regions, for their part, have benefited from the resumption of tourist activities, particularly in coastal and mountain areas, a dynamic that was amplified in August. Concerning the Ile-de-France region, in addition to the fact that July is usually part of the low season due to the summer decline in business travel, the region is also affected by a low level of leisure customers due to a much lower level of international tourism since the beginning of the health crisis.

Finally, economy and budget hotels are still significantly less affected than the most upscale segments. The Occupation Rates  have declined by 53.8 points compared to 2019 in the upscale and luxury segment, while the decline is only 22.5 points in the super-economy segment. The same is true for RevPAR, which declined from 68.3% for the most upscale hotels to 33.1% for the budget.

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