The situation started to pick up a little for the French hotel industry in March.
Although hotels did not record exceptional results, March did allow the first trimester to close on a positive note, particularly in Paris.
This was especially the case for Budget and Midscale hotels, and to a certain extent, Upscale hotels, too.
Higher RevPAR was recorded in March further to January’s decline and February’s stabilisation. This progression was the result of higher occupancy and stable average rates.
Further to the significant drop over the first two months of the year, Midscale hotels recorded the highest increase (+8,3%), while more upscale categories saw any declines start to slow. The following months are vital for the Luxury segment if it is to make up for the miserable start to 2015.
The situation for Parisian hotels looked rosier, compared with a month of January that was impacted by the events at Charlie Hebdo and Porte de Vincennes and an uncertain February. All categories recorded significantly higher results, enabling the industry to finish the first trimester on a positive – or at worst, equal – note.
The same can also be said of regional France, where hotels in all categories posted growth in March, enabling a positive first trimester. Upscale hotels recorded the most significant growth. Luxury hotels witnessed timid growth in March, and as in Paris, this slight rebound failed to offset the declines recorded over the first two months of the year.
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