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Hotels in France Post Disappointing September Results

News Start of the school year has surprisingly become quite poor for hotels in France despite all positive forecasts regarding recovery of the country’s tourism industry. Even though the situation cannot be called “bad”, and guestroom revenues remain quite stable, especially when compared to 2012, true recovery of French hotel industry is, unfortunately, yet to come. Some cities like Marseille posted improved results in September 2013, but their results were below the expected level.

In general, hotel occupancy was not declining throughout the country, but it remained on rather low level. In Paris, revenues of luxury and upscale hotels dropped even compared to 2012. On the other hand, the drop was not big thanks to rather strong demand and high occupancy levels – 80% in upscale hotels and 85% in luxury ones. The result of midscale hotels was somewhat better, mostly thanks to high occupancy (above 85%) and increased average daily rate. Hotels in this segment benefited particularly from price conscious leisure and business guests.

The situation in popular French resorts was the same. Hotels in Cote d’Azur posted decreased occupancy and slightly increased average daily rate. The main trend is the same as in Paris hotels, but there is one significant difference – high occupancy of hotels in Paris is beyond reach not only by regional France, but also by Cote d’Azur accommodations. Here occupancy was only 70% in regions, and 75% on the Riviera.

22.11.2013

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