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French Hotels Post Mixed Growth in October 2014

October has traditionally been one of the most important months for hotels in France as during this month business and leisure demand combines, bringing good profit for hotels in the country. That’s why October results were awaited with anticipation and they brought mixed news. On one hand, Ile-de-France finally improved its positions, and hotels in Paris and suburbs managed to achieve good results, but growth was often driven by significant increase in average room rates. Hotels in such locations as Val-d’Oise, Seine-Saint-Denis and western Seine-et-Marne, in their turn, posted incredible growth, mostly thanks to two large events that took place in the region in October – the CPHI (pharmaceuticals themed event) and SIAL (food processing event).

Hotels in the Cote d’Azur and some seaside resorts that are easy to reach from Paris (such as Pays de la Loire, Normandy, and Brittany) also had a good month thanks to very good weather throughout the month and, as consequence, more short-term stays. However, the growth was not enough to change the annual trend for these destinations, and the overall outlook for the year of 2014 is still challenging. The rest of France posted mixed results. Even though certain segments, particularly higher ones, post definite growth of occupancy, there is still a gap between current one and pre-recession levels of approximately 5-10 points. Hotels in super budget and budget segments posted declined occupancy in October 2014.

If analyzing results on a destination basis, the results vary in different cities. For example, in such cities as Nantes, Marseille, Toulouse, and Montpellier results were still below their normal level, so hotels there still need to wait for business tourism demand to recover.

16.12.2014

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