Market Report France

Deloitte French Hotel Industry Performance December 2013

For the French hotel industry, 2013 is not likely to go down in history, either in a good or a bad way. The key word of the year is unquestionably, 'stagnation': for the majority of categories and territories, RevPAR generally remained at 2012 levels, with only limited variations. Even Paris remained listless, as rooms revenue grew only slightly.

Deloitte Was 2013 all for nothing? Looking at cumulated year-end performances in December, it appears so. The variation in rooms revenue between 2012 and 2013 is desperately close to zero. From Super-budget hotels to Upscale hotels, rooms revenue stagnated, with evolutions of just -0.6% to +0.6%. The only exception to this was the Luxury segment, whose RevPAR grew by a little over 5%. 

Paris did, however, post some growth, although to a lesser extent than in previous years. Rooms revenue generally increased by less than 2%. Here again, the Luxury segment stood out, benefiting from the economic growth recorded in several of the world‟s countries, as well as the “must-see” status of Paris. 

2013 was neither particularly good nor bad for the Côte d‟Azur. In general, RevPAR progressed, but occupancy fell. Once again, the driver was higher room rates. To sum up, the year was fairly difficult on the Côte d‟Azur, particularly for Upscale hotels. 

In regional France, the status quo was maintained. Rooms revenue hardly evolved and when it did, any changes were marginal. Regional hotels remain penalised by an anxiety-inducing economic context, as businesses – like individual travellers – paid attention to their budgets, limiting hotel stays. However, an interesting evolution was the slight progression in RevPAR in the Luxury segment. Although modest and driven by increasing average rates, are hoteliers beginning to anticipate a slight recovery? 

Table - French Hotel Industry Performance December 2013

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