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Hotels in France Post Declines for First Three Months of 2014

First trimester of 2014 cannot be called very successful for hotel industry of France. Even though the beginning of the year was quite uncertain, March results showed clear drop of main figures. General room revenue lost from 1% to 5% depending on hotel category. This was coupled with still declining occupancy that only decreased profit of hotels in the country.

In February, even hotels in Paris couldn’t escape the decline of occupancy, even though its rate remained high. Only boutique hotels in Paris could increase their occupancy in March, while the average decline of rates estimated 7%. Municipal elections slowed down business activity, while school holidays in A and B zones in the first part of March also didn’t add much to activity of business travelers. Only hotels in selected destinations like Seine-et-Marne and Yvelines slightly improved their results thanks to increase of leisure travellers.

Cote d’Azur hotels also did not post promising results in first quarter of 2014. Hotels in some categories had their occupancy drop by 10%. This ended up in drop of RevPAR. Even hotels in Cannes couldn’t improve their rates despite the MIPIM exhibition. Regional hotels traditionally performed worse and posted declines of all key figures. If in some cities like Marseille the decline is totally logical because in 2013 the city hosted a number of large events, many other regional cities posted serious declines of occupancy of 10% and more. Hotels in Bordeaux are one of few exceptions as a congress helped attract more business visitors to the city.

12.05.2014

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