An Encouraging Start To The Year - French Hotel Industry Performances (January 2011)
The new year saw hoteliers hit the ground running. In Paris and throughout France, RevPAR increases in January were substantial, thanks to the combined effects of higher occupancy and average rates. However, these increases should be put in perspective. On the one hand, and with the exception of Paris and several large regional cities, business activity remained modest, with occupancy not quite hitting the 50% mark in the upscale and midscale...
The new year saw hoteliers hit the ground running. In Paris and throughout France, RevPAR increases in January were substantial, thanks to the combined effects of higher occupancy and average rates.
However, these increases should be put in perspective. On the one hand, and with the exception of Paris and several large regional cities, business activity remained modest, with occupancy not quite hitting the 50% mark in the upscale and midscale segments. On the other hand, economic recovery in January 2010 had not yet begun, with year-on-year hotel performances significantly decreasing, even.
Nevertheless, the news is, on the whole, welcome. Growth is more pronounced in the upscale (4/5*) and 3 star segments, in line with the trend observed during 2010. GDP growth in emerging markets, recovery in the investment market and higher levels of seminar and congress activity are all factors that help sustain occupancy in these hotels.