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Disappointing Results of French Hotels in September

News September turned out to be quite a disappointing month for hotels in France. Drops of occupancy were noticeable in hotels of all categories and almost in all destinations. Average daily rates were below normal, and so did room revenues. This information is stated in the latest report by In Extenso.

Surprisingly, only luxury hotels in France featured the growth of occupancy of 0.1% in September. The occupancy of midscale and upscale accommodations fell by 4% and 3.7% respectively. Only hotels in Rouen, Le Havre, and Nancy posted the growth of occupancy, but they were an exception comparing to the records of the rest of the country. The average daily rate was growing in September, but it was still below its pre-recession level. ADR of luxury hotels added 3.2%, and the increase of the figure for upscale and midscale hotels estimated 4.4% and 2.7% respectively. RevPAR results were somewhat mixed. It grew by 3.3% (€315) for luxury hotels, remained almost unchanged for upscale hotels (+0.6% to €160), and fell by 1.4% (€83) for midscale hotels.

As the growth of the number of hotels rooms in France continues, they will only add more problems to “a lifeless market”, as it is mentioned in the report.


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