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Mixed September Results for French Hotel Industry

News September was quite a challenging month for hotel industry of France. At a glance, the situation seems not as bad as overall performance was improving, and occupancy was growing throughout the month and RevPAR level was rising. Only super budget hotels kept posting negative results. Occupancy added on average from 1% to 4% depending on segment.

Hotels in Paris had very high occupancy in September. It almost reached the level of 90% and was 7% higher compared to the same period of 2013. With such high occupancy hotels cannot boost their revenues from occupancy growth, so they have only higher room rates as driving force. The same situation could be noticed in all main destinations in the Ile-de-France. Only few exceptions in certain segments or destinations couldn’t spoil the overall situation. However, regional France was put in more challenging situation. Here average room rates fell almost in all categories. Many hotels simply had to start price war in order not to lose clients, but that didn’t prevent average room rates from falling. The fall was noticed in all categories. However, drop in rates couldn’t prevent occupancy from falling even more. This situation could be seen in many large cities in the country, for example, in Lille or Bordeaux.


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