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French hotels post chilly September results

September proved disappointing for hotels in France, with drops in occupancy in most areas and hotel categories and average rates not sufficient to curb falling rooms revenue, according to the latest report from In Extenso.

Throughout France, occupancy at luxury hotels increased just 0.1%, while occupancy for upscale hotels fell 3.7% and 4% for midscale hotels. While In Extenso noted certain cities such as Le Havre, Rouen and Nancy did record occupancy increases, the general trend was one of falling occupancy rates.

Average rates were more resilient, with ADR increasing 3.2% for luxury hotels, 4.4% for upscale hotels and 2.7% for midscale hotels across France. RevPAR was a bit of a mixed bag, increasing 3.3% to €315 (US$402) for luxury hotels and 0.6% to €160 (US$204) for upscale hotels, but falling 1.4% to €83 (US$106) for midscale hotels.

In Extenso also noted that growth in the number of hotel rooms in the market has attained or even surpassed 10% over the past two years in certain places. “Ultimately, new establishments will undeniably contribute to rendering the destination in question more appealing, yet at present, their arrival just adds to a lifeless market,” the report said.

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