August was generally a good month for hotel industry of France, particularly for its midscale and upscale segments. Most of destinations in the country posted increased RevPAR that was geared up by higher occupancy.
The growth of RevPAR was noticed in all categories. While it was quite modest for super budget and budget segments, the growth was more evident for upscale hotels. In August RevPAR added just 1% for super budget hotels, 4% for the midscale segment, and already 10% for upscale and luxury hotels. The main moving force for the growth was increased occupancy, and average daily rate remained mostly flat. The most positive factor is that this pattern was noticeable in all main destinations of France, with some exceptions. For example, luxury hotels in the Cote d’Azur and Paris not only increased their occupancy, but also faced significant increases in average daily rate, mostly thanks to numerous guests from the Middle East, who preferred to visit the country in August and not in July because of Ramadan.
Coastal sector remained one more exception to the main trend. This time, seaside hotels did not drive the regional hotel industry. Instead they posted declines, mostly due to the bad weather. Only the Normandy coastal market could post positive result thanks to the World Equestrian Games that are organized every four years. The games are widely referred to as one of the most important equestrian events in the world, so they traditionally attract many fans and participants from different countries.