Market Report France

The 2016 First Trimester Ends on a Positive Note for the French Hotel Industry

No doubt we will have to wait to see what the real trend is, but March’s results were generally positive. Regional France, and the Côte d’Azur in particular, showed a good start to the year, with the Luxury segment leading the way. Even though Paris and Ile-de-France were still recording lower performances, the declines are lessening. Note that for the first time in a long time, Super-budget hotels saw simultaneous growth in occupancy and average rates. 

It is still too early to start celebrating, since Paris and the Ile-de-France region are not yet back in the black. However, given the very sharp drops recorded since December of last year, posting declines of under 10% in March could almost be construed as hopeful – particularly since March 2015 was a very good month for this zone. Occupancy rates were generally above 70%, with Upscale Boutique Hotels even recording an increase (+1,1%). 

Throughout the rest of France, the trend detected in January and February was confirmed in March, with solid growth observed. This was particularly the case for the Luxury segment, whose RevPAR rose by almost 30% in the regions and over 20% on the Côte d’Azur. In these areas, all categories recorded substantial increases in March – again, compared against a good month in 2015. 

Further to a long period of decline, the Super-budget category finally managed to lift up its head, posting simultaneous increases in occupancy (+1,6%) and average rates (+0,8%). Whilst the underlying trend has not yet been reversed, this rare encouraging result is still good news! 

Table - French Hotel Industry Performance March 2016

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