In Paris, the end of the year could wipe away the optimism about performance gains of the past few months.
Overall occupancy of Parisian hotels is down in November by almost -3%. The drop remains relatively small and affects mainly the lower classes of each category: First Class and Large cap on the upscale market and 3 star Standard on the mid-scale market posted a decline of -5% and -6% respectively. At the same time, occupancy rates of Boutique hotels as well as Superior 3 star properties remained stable. Only the Palaces and the Deluxe Hotels continue to progress with a +3% increase of occupancy.
This occupancy drop can partly be explained by the fact that the month of November includes two bank holidays (1st and 11th of November), bringing about two long weekends this year. Number of employees followed these bank holidays and even extended with extra days that had not been taken in May (1st and 8th May falling on a Saturday this year). Indeed, in retrospect May 2004 was a good month compared to the previous year, showing an increase in occupancy rates for Parisian hotels : +15% for 4 star hotels and +13% for the mid-scale properties.
The average rates of the upscale hotels are generally affected: the Palaces and Deluxe hotels as well as the First Class and Large Capacity hotels post a drop of -3%. Nonetheless, Boutique Hotels manage to maintain the ADR and even register a slight progression of +1%. Concerning the mid-scale segments, prices remain stable.
While on the upscale market, most of the hotel categories show a stabilized RevPar this month with respect to November 2003 (except for the First Class and Large Capacity hotels who loose -8% of RevPar), the mid-scale market posts a drop of almost -3% essentially due to the decrease in occupancy rates.
In the provinces, November turned out to be much better with an increase in both occupancy rates and average daily rates for all categories.
The increase in occupancy varies from +2% for the 2 and 3 star properties to +4% for the 4 star hotels. In opposite order, the gains on ADR are +5% for the 2 star hotels, +3% for the 3 star hotels and +2% for the 4 star hotels. Finally, it is the 2 star properties that post the highest RevPar increase with almost +7%.
Regional hotel industry is showing good performances in November while at he same time Parisian hoteliers are struggling. Does this mean that the 'long-week-end' phenomena is benefiting only the regional hotel market to the detriment of Parisian business-segment-oriented properties? Regional hotels seem to be less sensitive to business activity slowing down during short periods and at the same time they easily capture a leisure clientele on short breaks.
Note: Grand Luxe = Deluxe Hotels, Hotels de Charme = Boutique Hotels, Gros Porteur = Large Capacity Hotels
Upscale Hotel Market in Paris
Midscale Hotel Market Paris
Regional Hotel Market
BDO Hôtels & Tourisme
3, rue Ernest RENAN- 92136 ISSY LES MOULINEAUX CEDEX
Téléphone : +33 (0)1 72 29 60 00
Télécopie : +33 (0)1 72 29 60 61
E-mail: willemijn.geels@bdo-tourisme.fr
Logos, product and company names mentioned are the property of their respective owners.
