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Top-notch performances for 4* in July

Following results recorded in the first semester, the second semester began with an increase in the RevPAR that is close to 4%. Disappointing for some, July 2005 nonetheless offered more than one reason to remain optimistic.

The 3.9% increase in the RevPAR in July is cheering because it concerns all the categories. This is no surprise for economy categories where the revenue per available room improves relentlessly (from +2.4% to +3.3%). The truly good surprise in July hailed from the upscale, which significantly improved its monthly performance (+8%). “The results are much better than last year, with our OR rising by points,” rejoices Yves Gardel, director of the Radisson SAS Lyon. Like this property, the entire segment shows a clear increase in its OR (+5.2 points) while its room rates remain stable (-0.4%). Finally, 3* hotels that will have shown the worst monthly performance (+1.8%).The business hotels also reports good results in July, and high-capacity 4* hotels, for example, post a RevPAR that is up by nearly 10% and an occupancy rate that is up by 7.3 points (to 70.2% on average). July 2005 looks like a key month: the good results of the first semester are being confirmed, once again 4* shows significant growth. All these factors support the forecasts for an increase in the RevPAR made by MKG Consulting for the year 2005: from +3% to +5%.While the Côte d'Azur comes out the great winner of the month in France with +10.7% for the RevPAR in July, other regions pale in contrast. Brittany, for example, with a RevPAR down by 20.3% in the Finistère in July, had a difficult month as far as tourism is concerned. And the month of August hardly looks better. There is a variety of reasons for this: bad weather for some, economic situation and new vacation behaviour for others... Yet the return of American clientele in full fanfare – in addition to the rapid growth of Asian clientele – makes it possible to look more objectively at this observation that in the end would have fairly little impact on the overall results.Who is benefiting from the increase in the numbers of Asian and American tourists? For the most part France’s major tourist destinations: the French Riviera, Paris and its surroundings (around + 4% in the RevPAR), the Loire Valley. On the other hand, German tourists continue to shun France. Meanwhile, there more English once crossed the Channel, but now they prefer the south over Brittany’s beaches. Less seasonal than in the past, departures are happening later and later. In the Rhône-Alps region, results look positive, “July has confirmed the uptrend observed since the beginning of 2005. The municipality has made major efforts to promote Lyon. Business was steady until July 22, whereas it usually calms down after Bastille Day. Our business clientele stayed longer,” explains the Director of the Radisson SAS Lyon. In Paris, Cristiano Morelli, Sales director at the hotel Lotti 4* says he is satisfied with the season: “July is never excellent, but 2005 was better than 2004 with an OR up by 9%. And August is very satisfactory: while the OR is up slightly, it is above all the ADR that is doing well. The Japanese and Americans are back this summer, and we noticed the arrival of new Asian clientele from China, Korea.”

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