While not quite as good as in September, October performances confirmed however that the Parisian hotel market is recovering…
While not quite as good as in September, October performances confirmed however that the Parisian hotel market is recovering.
The totality of the upscale segments posted an increase in occupancy rates varying from +5% for Large Capacity and First Class properties to over +7% for the rest of the 4 Star supply in the city. The average increase in occupancy for the upscale category was +6%.
The mid-scale hotels, on the other hand, observed a slightly lesser growth with only +2%, and even a drawback for the Superior 3 Star hotel -down by 2%.
The trend in average rates was somewhat different: while ADR remained static in the upscale segment for all categories, strong growth occurred in the mid-scale segment. 3 Star hotels recorded the largest increase, managing to drive upward their ADR by +8% on average.
In October, the overall RevPar (all categories) was on the rise. The upscale hotel market showed a 5% progression and the mid-scale segment over 8%. Even though the Boutique hotels won the race in the Upscale segment, it is the Standard 3 Star hotels that are maximising RevPar growth this month (+12%)
In regional France, the situation was a little doom for the RevPar performances were up by +2% in the 4 Star segment but they were down by -2% for the 3 Star hotels, the 2 star market remaining stable compared to the same month last year.
The gain in RevPar realised by the 4 Star properties in regional France was the consequence of the strong increase in occupancy rates for this category, because ADR dropped slightly by –1%.
Conversely, the 2 and 3 Star hotels were losing in occupancy rate, registering a drop of -5% and -4% respectively. This loss in activity was partially offset by an increase in ADR. We observed a growth of +2% for the 3 star hotels and +5% for the 2 star hotels.
Note: Grand Luxe = Deluxe Hotels, Hotels de Charme = Boutique Hotels, Gros Porteur = Large Capacity Hotels
Upscale Hotel Market in Paris
Midscale Hotel Market Paris
Regional Hotel Market
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
