The first estimates of French hotel performances for the summer of 2017 already allow us to draw a much better summer balance than last year.
On a national scale, between July 1st and August 15th, hotel revenue increased by 3.1% compared to last year. This result is attributable to the strong growth in occupancy rates (+3.9 points), while average prices fell by 2.4% over the period.
The summer results show growth in all segments, but it is the upscale hotels that have been most affected by the price drop (-4.5%). As a result, it is in the mid-range, budget, and economy categories where the best growth is found during the period, with RevPAR (Revenue per available room) increasing by 6%, 4.1%, and 3.8% respectively, while the upscale & luxury category gained only 0.7%.
In detail, the Atlantic coast is the only coastal area to record better performance than last year (RevPAR +1.1% over the period), while Brittany, the French Riviera, and the English Channel are struggling due to the drop in average prices.
For its part, the Mediterranean paid in July (-5.1%) for the price of geopolitical tensions affecting Middle Eastern clients, who are regulars of the Cรดte d’Azur market but avoided it. Fortunately, the region caught up in early August thanks to the revival of the Nice market, which had been weakened last year by the July 14, 2016 attacks.
