Just as the weather has been mixed during this first month of summer, the French hotel industry is not in the best of health. The political instability in France following the results of the European elections seems to have slowed the recovery that began in May. The country's performance is back in the red as it prepares to host the Olympic and Paralympic Games the following month. Only a few regions, including Normandy, Provence-Alpes-Côte-d'Azur and Auvergne-Rhône-Alpes, have escaped this downward trend.
While occupancy was only down by 0.4 points last month, the indicator is down again this June, with a nationwide drop of -4.6 points compared to 2023. However, the French hotel industry posted a higher occupancy rate than in May, 74.7% compared with 69.3%. However, this figure is still somewhat disappointing for the start of the summer period.
The trend in average daily rates is no better, with the French hotel industry posting a decline of -4.4% compared to June 2023. This decline puts an end to the upward trend seen in recent months. The economic and political context no longer seems conducive to a pricing power strategy.
Unsurprisingly, RevPAR in France showed a relatively sharp decline of -10%, whereas the previous month this indicator had risen by +3.1%. Nevertheless, it should be emphasised that all the performance indicators are above the 2022 level, with RevPAR up by around +8.5%.
All categories are posting occupancy rates below 2023 levels, with the economy segment recording the biggest drop (-5 points), while the midscale segment is seeing the smallest decline (-4.2 points), closely followed by the upscale segment (-4.3 points).
All segments also recorded lower occupancy levels than in June 2022, with the budget segment lagging furthest behind (-3.7 points), while the top-of-the-range segment was closest to its level of two years ago (-1.1 points).
In terms of prices, the opposite is true, with upscale and midscale segments posting the biggest falls in average daily rates (-5.8%), while super-economy is seeing its average daily rates fall by ‘only’ -1.1%. The economy segment fared better than the higher categories, with a fall of -2.4%.
With a more marked fall in average daily rates, the midscale and upscale segments are logically those posting the biggest decline in terms of RevPAR (-10.7%), even exceeding the...
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