French commercial leases and contract law governing hotels, hotel residences, tourist residences and restaurants constitute essential legal and economic stakes. In this sense, the 2014 Pinel Law represents a major legislative change for landlords and tenants.
In France, the negotiation to determine whether the hotel's employees are employed by the owner or the operator is a contractual key matter. French owners require more frequently to pass the responsibility of employment to the operator, which has significant consequences on the negotiating and on the drafting of hotel management agreements.
Will 2017 be a growth year for the travel and hospitality industry? Deloitte’s recent industry analysis reports that forward thinking companies with an eye towards innovation could turn some of the challenges into opportunities in the coming year.
September saw a decline in occupancy and average rates for all categories, with all major areas in France affected. Ile-de-France, the Côte d'Azur, and even Regional France, recorded lower RevPAR in all segments, with the exception of Luxury.
Hotel performances for August in Paris and, as feared, on the Côte d'Azur dragged down the results for the industry as a whole, in spite of the encouraging performances recorded in Regional France and in Coastal areas.
The Euro championships organised in France and the daily hotel performances communicated by our partner, STR, signalled some hope for July. Paris and the Côte d'Azur finished July on a very negative note, with RevPAR significantly dropping in all categories, given the sharp decline in occupancy.
Regional France was able to capitalise on the Euro 2016 championship to build on the encouraging results posted at the start of the year, with all categories recording higher RevPAR at the end of the first semester.
Following a month of April when all regions recorded losses, the contrast in May's performance from one zone to the next was striking. Unfortunately, Ile-de-France continued to pay the heavy price of the terrorist attacks of early 2015 and in Brussels.
March's generally positive results led us to believe there was some hope for recovery. Unfortunately, April's performances dropped in the majority of categories and throughout most of France. The attacks in Brussels at the end of March reminded international visitors of the ongoing security threat in this part of Europe.
No doubt we will have to wait to see what the real trend is, but March's results were generally positive.Regional France, and the Côte d'Azur in particular, showed a good start to the year, with the Luxurysegment leading the way.