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There was no miracle for the French hotel industry at the beginning of 2010 and the certain markets continued to suffer. Market drops were significant, since data were compared against January 2009 – a month already affected by the downturn. The crisis did not even spare the budget sector in January (a sector that has to date performed in spite of the slump): whilst average rates remained acceptable, occupancy dropped, resulting in RevPAR declines of 2% in the North-East and South-East and up to 6% in the South-West.

A positive sign for the beginning of 2010 concerns 3 star hotels – the sector experienced increasing RevPAR in Paris and on the Côte d’Azur. Although there’s no question of a rise in RevPAR, regional hotels – more so than other categories –limited any declines.

Aude de Mauvaisin
Senior Consultant | Deloitte TH&L
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