Benchmarks

After two months of recovery, August showed mixed results depending on category and location. While “intermediary” categories (Midscale, Upscale) resisted well thanks to higher average rates, Super-budget hotels confirmed declines in RevPAR. For higher-end hotels, August’s results varied from region to region, resulting in an overall drop in occupancy and rates. Despite all this, August’s results must be put in perspective when compared with August 2014 – a particularly good month – and year-to-date growth, which remains positive.

Looking at June’s results, we had dare hope that the French hotel industry was on the road to recovery – July’s performance helped confirm our hopes, particularly at the upper end of the scale. The clement weather in July was obviously one reason for this. However, depending on the region and the hotel category, the shift in Ramadan also had a positive effect. The only fly in the ointment was the Budget and Super-budget categories who failed to benefit from this bright spell.

Further to a lacklustre month of May with destinations posting conflicting results, June seemed to herald a recovery throughout France. Depending on the category and zone, this recovery amplified the positive results or helped make up for the negative performances recorded since the start of the year. The good weather and the announced beginning of economic recovery doubtless favoured this, although June 2015 is being compared to June 2014 which was particularly quiet given the lack of major events.

A mixed bag in May: some regional destinations post real growth in RevPAR, with Paris, Lille, Marseille and others recording a drop. Does the explanation lie in the bank holidays or the timing of the school holidays ?

April’s results were generally somewhat gloomy. However, a closer look reveals a contrasting hotel landscape. After the brief lull in March, the capital began to slide again. On the other hand, regional cities benefited from the school holidays, allowing them to record relatively good trading results in April.

The situation started to pick up a little for the French hotel industry in march. Although hotels did not record exceptional results, March did allow the first trimester to close on a positive note, particularly in Paris. This was especially the case for Budget and Midscale hotels, and to a certain extent, Upscale hotels, too.