A bad start to the year for the French hotel industry

January was not a good month for the French hotel industry, as RevPAR declined.

Although business did not fall dramatically, RevPAR stagnated at best, and dropped by almost 5% at worst.

Never a good month for French hotels, occupancy and average rates are often low in January – a situation not helped by the current economic climate.

All the same, this is the third year in a row that January’s performances have dropped in comparison to the previous year (1).

In short, the decline in January 2014 – although moderate – only serves to prolong a difficult situation.

Rather worryingly, Parisian hotels also posted a drop in RevPAR. Although the Luxury segment managed to increase rooms revenue by +2.7%, this remained an exception.

Throughout regional France, the situation was even worse, as practically all destinations and segments slumped. While Luxury hotels posted stable rooms revenue, the decline in other categories was pronounced: between -4% and -6%.

The Côte d’Azur was badly hit, with occupancy and average rates dropping significantly. RevPAR fell between -7% and -24%, compared to January 2013.

During the winter, hotels on the Côte d’Azur are particularly dependent on the MICE market and the slightest drop in business in this arena makes itself very strongly felt.

Further information, figures and statistics il the PDF joined. See below.

(1) With the exception of Luxury hotels who, in January 2012, posted +10% growth in RevPAR compared with 2011.
(2) MICE : Meetings, Incentives, Conferences and Exhibitions.

French Hotel Industry Performances – January 2014
Definitions
OR = Occupancy Rate
ADR = Average Daily Rate
RevPAR = Revenue per available room