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French Hotel Market Faces Difficulties in 2012

News February 2012, just like January, didn’t bring any positive results to French hotels. The hotel industry of the country shows a continuous downward trend. This information has been revealed in the report prepared by In Extenso.

According to the report, in February luxury hotels in France showed the decrease in occupancy and, thus in revenues. Occupancy fell by 2.5% to the level of 46.6%, ADR (average daily rate) featured the drop of 1% to the level of €307, and RevPAR (revenue per available apartment) fell down by 3.4% and estimated €143.

Of course, hotels in Paris show better results than hotels in provincial France. Regional hotel markets have to continuously struggle with the consequences of the Eurozone crisis. In February provincial luxury hotels showed a significant decrease in RevPAR of 7%.

In Extenso report also mentions the cities of France, which feature the most significant decreases in performance. Hotels in Lyon, Toulouse, Nantes, Montpelier, and Grenoble show the decrease of occupancy of 10% and even more.

However, some destinations of France show slight increases in the number of guests. For example, hotels in Avignon, Bordeaux, Le Havre, and Angers showed better occupancy this February. An interesting detail – the increase of occupancy in the mentioned towns concerned hotels of all segments except for budget and super budget accommodations.


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