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Mixed Performance of Hotels in France in May 2015

News May was a mixed month for hotels in France. Literally, hotels were enjoying high revenues one day and then decline the next one. The results were not same in different regions of the county as well, so some destinations posted drops of RevPAR while others enjoyed strong growth.

Surprisingly, the French capital posted negative results in May. Hotels in Paris in all categories experienced declines in occupancy, which was mostly ranging from -1% to -7%, with such segments as midscale and luxury hotels being affected the most. Continuous declines posted by Parisian hotels start to worry industry players who hope for better June due to the Air Show, which may boost bookings at nearby hotels. The concern of industry insiders about their revenues is more obvious if we take into consideration the fact that current average rates are below the ones last year in all segments except standard midscale and upscale hotels.

Hotels in regional France, in their turn, had positive May and saw their revenues grow. Improving RevPAR was reached by all categories except budget hotels that recorded a drop of 1%. Super budget and midscale hotels posted modest growth of 1%, while upscale and luxury segments enjoyed bigger growth - +6% and +11% respectively. Still, regional performance of hotels in France depended greatly on the destination. While hotels in Lyon, Nancy or Grenoble performed well in May, Marseille, Avignon and Lille couldn’t reach growth and ended the month with significant declines.


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