T he drop in the monthly occupancy rates bears on all segments with exception to the 3*, which progressed by 0.5 points. The different categories continue to bank on strategies that are very distinct from one segment to the next. Thus the budget niche is always able to compensate the drop in frequency with an increase in average daily rates, whereas the upscale hotel industry must allow distinct efforts in rates in order to stimulate occupancy. The deterioration of the average daily rate in 4* hotels in July led to a RevPAR down by 5.4%. 3* is also faced with a drop in its average daily rate (-2.3%) which meant a drop in the RevPAR by 1.6%. July 2004 is thus a disappointing vintage for the French hotel industry. And moreover let’s not forget that this performance is with respect to July 2003 which was already a month marked by a significant drop (-5.5%) in particular due to theatre workers’ social movements.While the month of July marks the start of the mid term trend, across the previous 12 months the revenue per available room at French hotel chains nonetheless maintains its equilibrium with +0.1% with respect to the previous year. The average daily rates continue to grow according to a relatively constant rhythm (+1.2%) despite occupancy rate that is down slightly (–0.7 point). As the third quarter comes to a close, the last quarter should be decisive for French hotels. Despite the accident of July, we can reasonable hope that the end of the third quarter, and above all the fourth quarter, will show growth with respect to 2003, which will probably remain the last decade’s low point for France’s hotel industry.And yet economic growth is back. After a year 2003 that was catastrophic for the French economy (+0.5% for...