Market Report France

Paris and Major Ile-de-France Zones Hotels Continue to Record Significantly Lower Performances for February 2016

Deloitte

In a similar vein to 2015 and January 2016, the Côte d’Azur and Regional France confirmed or even improved on January’s good results. Conversely, Paris and major Ile-de-France zones continued to record significantly lower performances, and the return to normality will have to wait.  

The time taken to recover from November 2015’s terrorist attacks, and more generally, the security risk present in the minds of French and international clients, varies from one area to another. 

As was the case throughout France, Regional hotels experienced a drop in demand in November and December of last year, further to the Paris attacks. However, the repercussions seem to have been digested from January 2016 onwards, as confirmed by February’s results. Luxury hotels benefited from this, recording very good performances on the Côte d’Azur and in regional France, with RevPAR up by +21,8% and +9,4%, respectively, at the end of February. Rooms revenue was driven upwards by a significant increase in occupancy. 

However, Paris and major zones in Ile-de-France continued to suffer and have not yet recovered. RevPAR was down by 13% to almost 20%, depending on the category and zone. Hotel bookings, theoretically, are not confirming a return to normal levels of activity until the second trimester of this year. Furthermore, the recent events in Brussels are reminding international visitors of the security risk in this part of Europe. However, the fight against terrorism seems to be paying off, leading us to hope for better days ahead. 

Table - French Hotel Industry Performance February 2016

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