Although the French hotel industry continued to see a fall in occupancy in July (-1.5 points), the decline was less marked than in the previous month, when it stood at -4.6 points. However, the occupancy rate in July was lower than in June, at 70.4% compared with 74.7%.

The increase in fares has more than made up for this slight fall in occupancy, with the average daily rates up by +11.6% compared with July 2023 and +17.7% compared with July 2023.

This growth contrasts with the negative trend of the previous month, when the average daily rate fell by -4.4%. The return of fine weather and the events calendar are enabling hoteliers to play the pricing power card to the full once again.

RevPAR growth is therefore positive, with an increase of +9.2% compared to 2023 and +12.6% compared to 2022, reversing the trend of the previous month when RevPAR in the French hotel industry fell by -10%.

All segments saw their occupancy rates fall, with budget recording the lowest (1.2 points) and economy the highest (-2 points). The midscale and upscale categories fall in between, with declines in occupancy of -1.4 and -1.6 points respectively.

The decline is even more marked in relation to July 2022, with the upscale segment seeing its occupancy rate fall by -4.2 points, followed by budget (-3.5 points) and economy (-3 points). The midscale segment fared slightly better, but was still down 2.6 points on the previous year.

On the other hand, all segments saw an increase in their average daily rates. The increase ranged from +7.8% for the budget segment to +15.7% for the upscale segment. Surprisingly, the economy segment is showing stronger growth than the midscale category, up 10.6% compared with 8.4%.

This substantial increase in average daily rates has enabled all...