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October Results of Parisian Hotel Industry

October can be called quite a difficult month for French hoteliers as room revenues generally went down. While some French cities have managed to keep their revenues on flat level, other cities posted decreased results. Surprisingly, Paris is one of those cities. However, traditionally high level of occupancy helps Parisian hotels maintain high price tag.

The second month of autumn could be called nothing but hard for the French hotel industry. Hotels in almost all categories posted decreased RevPAR. Super budget accommodations had their revenues cut by 1%, while upscale hotels posted bigger decline of RevPAR – 5%. Only hotels in the luxury segment had a successful month – their room revenues added 6% in October 2013. The growth was mostly geared up by the average daily rate increase as occupancy remained the same.

At the same time, hotels in regional France often struggled better than the capital, but the situation was different in different cities. For example, while hotels in Lille, Dijon, and Marseille mostly did well, the results of Montpellier, Bordeaux, and Grenoble were not so promising.

The future of hotels in Paris is yet unclear. Even if they manage to post flat results, this is the reason of growing average daily rates, and the occupancy keeps falling. Starting from the beginning of this year, the occupancy was falling in seven out of ten months. Some experts, however, recommend not over-dramatizing the situation as even falling occupancy of hotels in Paris is still high and is often over 80%.

12.12.2013

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