Paris and the Ile de France region were dramatically hit by two terrorist attacks in 2015. The impact on hotel
activity is evidently substantial and hotels in this area will finish the year on a lower note. November saw a fall in
occupancy in Parisian hotels of all categories compared to the same period 2014. Although the impact appears to
have been less strong in regional France, intermediary categories nonetheless recorded lower performances in
November 2015, particularly on the Côte d'Azur. Our fears were unfortunately confirmed as Paris suffered a
significant drop in occupancy further to November's attacks (a fall of 10,9% to 14,6% depending on the category).
Stable average rates limited the drop in RevPAR, although rooms revenue was still affected. Paradoxically, Luxury
hotels managed to stabilise or grow RevPAR (+3,3%), although this was an illusion, since November 2014 was not a
particularly good month (aggravating the findings for other categories). The rest of the region fared better, and
inferior categories (Budget and Super Budget) in certain departments even managed to increase RevPAR. The rest
of France suffered to a lesser extent. The Upscale and Midscale categories were the only ones to record fairly
significant drops in RevPAR in November 2015: -9,8% for regional Upscale hotels given the combined fall in
occupancy and average rates and -9,5% for Midscale hotels on the Côte d'Azur given the significant drop in
occupancy. All other categories recorded stable or better performances, confirming the more encouraging pattern
recorded over the past few months. Even though we should remain cautious when comparing results against
November 2014, year-end performances show a marked increase, with December not likely to reverse the trend. For
Super-budget hotels, the months go on and resemble each other. Maintaining a +1,5% increase in average rates
since the start of the year has not been sufficient to offset declining occupancy: RevPAR is down by almost 1% and
appears to have stabilised at this level. We are already well into the month of December, and the picture is not
likely to change much. Yearend results will in all probability be encouraging for regional France, particularly for the
Côte d'Azur. Conversely, the significant drop recorded since the start of the year in Paris will likely be aggravated by
an uncertain month of December, as security fears continue to prevail. 2015 looks, then, to deliver mixed results.