France hotel performance shows steady improvement

FRANCE The hotel industry in France posted modest improvements across all metrics and sectors in November, with the 3-star segment showing especially promising gains.

France’s 3-star properties saw RevPAR spike 10.5% in November to €61, driven by a 7.1% gain in occupancy rate and a 3.2% improvement in ADR. The 2-star and 4-star categories showed similar improvements, reaching RevPARs of €37 and €123, respectively, according to data from Deloitte.

Many markets were boosted by guests who delayed travel due to labor strikes across the country in October. Bordeaux, Lyon, Cannes, Dijon, Metz, Strasbourg and Rennes all posted RevPAR growth in all segments, including double-digit improvements upmarket. In Paris, occupancy rose in all categories except 2-star hotels.

In Ile-de-France, solid demand drove RevPAR higher than in Paris. Essonne, Val-d’Oise and Seine-Saint-Denis posted the region’s strongest growth, benefitting from a 3.5 increase in air traffic during November. Year to date, France’s 2-star segment remains fragile, with overall occupancy trending downward, Deloitte says.