Despite a near-universal decline in occupancy rates, hotels improved their accommodation revenue levels across all destinations observed.

The first half of 2013 ended on a positive note for the French hotel industry. Faced with an increasingly tight market for commercial accommodations, hotels across the country managed to improve their performance. Despite a near-universal decline in occupancy rates, hotels succeeded in increasing their accommodation revenue, thanks to a significant rise in average prices across all destinations surveyed.

The end of the first half of 2013 was a positive one for the Parisian hotel industry. Across all categories, accommodation revenue increased significantly thanks to a rise in average revenue per available room (ARV) compared to last year, with RevPAR improvements ranging from +7% to +22%. The upscale and luxury segment saw its performance improve considerably, particularly due to a more aggressive marketing campaign this year for new properties. Thanks to improved performance since the beginning of the year, cumulative results are significantly higher than last year's, driven by higher average daily rates.

The Île-de-France region also posted higher RevPAR levels (between +7% and +11%), also thanks to an increase in RMC. Budget hotels showed the strongest growth due to a rise in their occupancy rates. Hotels located in the departments bordering Paris not only outperformed the rest of the region, but also experienced a greater increase in performance.

Visitor numbers are down in the provinces

Regional hotels are following the same upward trend, with RevPAR improving thanks to higher average prices. Only the budget category remains stable.

Hotel occupancy in provincial cities is, however, significantly down compared to last year. The decrease ranges from -0,1% to -6,3%. Luxury and budget hotels were the hardest hit, with declines of -6,3% and -2,5% respectively. This drop in occupancy generally resulted in lower RevPAR levels in cumulative results compared to 2012.

On the French Riviera, only the upscale category saw its RevPAR decline, influenced by a significant drop in occupancy. This trend was observed throughout the first half of 2013 compared to the previous year. Conversely, midscale hotels posted the strongest RevPAR increase compared to other categories, again thanks to a rise in average prices.