The performance of the French hospitality sector continued to improve throughout March, confirming the positive trend seen throughout the first quarter of 2022.
Despite a decline in March 2019, occupancy increased eight points from February 2022 to 56%. RevPAR also showed a slight increase in March, but it is still 3% below 2019 levels. Only the average revenue per room rented confirmed its growth compared to 2019, rising by 8% to €95 in March 2022.
The outperforming first quarter performance of 2021 also confirms the faster recovery of the French hospitality sector in the regions and on the Côte d’Azur compared to the Paris hotel stock, whose RevPAR is still declining by 24%.
However, despite encouraging forecasts for the coming months and a recovery in the sector, this upward trend is likely to be affected by continued inflation, rising wages and energy prices, in particular due to the war in Ukraine.
Paris and Île-de-France: Rise but still far from pre-crisis levels
Paris hotels did show above-average occupancy rates compared to the regions and the French Riviera, reaching 71% in March, but the gap from 2019 remains significant (-9%).
The average price also rose to €164, up 7% from 2019. This was facilitated by luxury hotels and palaces, which recorded a 23% increase in GCR. However, revenue decreased in all categories, except for Luxury and Palaces, and amounted to €116.
However, it should be remembered that the performance of the hotel industry in Paris in February 2019 was affected by the yellow jacket crisis, and they have already been reduced in all categories. The gap to be bridged in the coming months will be relatively larger.
French regions (except Côte d’Azur) thanks to the loyalty of local customers
In March 2022, the performance of hotels in the regions was slightly higher than on the Côte d’Azur, which, in particular, was facilitated by the loyalty of local customers and the return of foreign customers. However, the pace of recovery remains uneven across the capital regions. Hotels that depend on guests for business and conventions continue to suffer from the health crisis.
While average revenue per rented room recorded an increase across all categories to €81 – up 8% compared to 2019 – RevPAR continues to narrow the gap from 2019 to €43, or -1% compared to pre-crisis levels. The occupancy rate is also on the rise, although it remains 8% lower than in 2019.
Côte d’Azur: The return of events has increased business efficiency
After a mixed start to the year, the Côte d’Azur hotel business managed to turn the tide in February. Indeed, the return of seminars and exhibitions has stimulated the sector and hastened its recovery. Moreover, some specialists took advantage of the MIPIM exhibition, which took place in Cannes in mid-March, to reopen their establishments.
However, hospitality occupancy is still down 16% from 2019 figures, while MCR rose significantly in March, reaching €151, up 20% from 2019. At the same time, RevPAR stabilized at €74, an increase of 1% compared to 2019.