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The French Hotel Industry Confirms its Solidity in 2002 and Serenely Forecasts
a Year 2003, Despite Geopolitical Instability

 
  • Hotel chains post total revenue up by 4.8% to 6.4 thousand million euros in France at end 2002.
  • The total hotel supply grows by +1.5% versus +3.5% for the chain hotel industry, particularly in the 2* category which is the most important segment in France.
  • The French chain Accor strengthens its position as the number one French group by growing its supply by 3.3% in the hexagon.
For 18 years now, MKG Consulting has been the exclusive publisher of the official statistics of hotel chains. This year, in collaboration with HTR magazine and Hôtel Hebdo, thirty or so major figures and deciders in the sector will participate in a major day long conference to present the different strategies and trends of the French, European and International hotel industries.

Herewith is a preview of the exclusive first results that will be more extensively detailed in this conference.

Annual results of chain hotels at end December 2002

Occupancy rate 2002
Change 

02 / 01

Average daily rate 2002

(in Euros, incl. VAT)

Change 

02 / 01

RevPAR 2002

(in Euros, incl. VAT)

Change 

02 / 01

0*
75.7%
-1.7
25.8
4.6%
19.5
2.3%
1*
73.1%
-1.7
34.3
5.7%
25.1
3.3%
2*
68.9%
0.3
53.7
4.3%
37.0
4.8%
3*
64.3%
-0.7
83.3
3.8%
53.6
2.7%
4*
65.4%
-2.7
190.6
2.7%
124.6
-1.4%
France
68.9%
-0.9
71.1
3.1%
49,0
1.7%
MKG Consulting – February 2003
Official statistic of hotel groups

In France, the year 2002 closes with growth in the RevPAR (+1.7% versus +1.3% end 2001). The year 2002 was in keeping with forecasts made by MKG Consulting at the end of 2001. French hotel chains closed fiscal 2002 with a total revenue up by 4.8% to 6.4 thousand million euros. Rooms revenue grew by 5.4%, food and beverage revenue gained 3.8% while other revenues gained 2.0%. These increases may be explained by the growth in RevPAR and by the growth of the supply. On 31/12/2002, the chain hotel supply grew by 3.5% (3,247 hotels for 253,277 rooms). It is the strongest growth since 1994: many hotel projects came about in 2002. 

Annual ranking of the top 5 hotel groups in France (on 01/01/2003)

Hotels
Rooms
Variation
2002 Rank
2003 Rank
Group
Country
2002
2003
2002
2003
Rooms
%
1
1
Accor
F
1,243
1,276
112,457
116 118
3,661
3.3%
2
2
Louvre / Envergure
F
833
791
53,000
51 495
-1,505
-2.8%
3
3
Best Western
USA
216
216
11,185
11 209
24
0.2%
4
4
Choice
USA
150
171
8,214
9 785
1,571
19.1%
5
5
Six Continents
UK
64
68
7,558
7 964
406
5.4%
Total top 5 groups
2,506
2,522
192,414
196,571
4,157
2.2%
MKG Consulting – February 2003
Official statistics of hotel groups

The good performance of the French hotel industry may be explained by an economic slump that was less brutal in France than in other European countries and by a French hotel market that is more mature than anywhere else. France is the number one tourist destination and chains have invested in the budget sectors, which resisted better than the mid- and upmarket categories.

The top 5 groups in France, which account for 77% of the French hotel chain supply, meanwhile, post growth in their supply by 2.2%. The 2003 ranking remains unchanged. Accor improves its position as number one hotel group with a portfolio of 1,276 hotels and 116,118 rooms. The brands in the Accor group that have contributed the most to this growth are Etap Hotel (24 additional hotels, +2,188 rooms), Ibis (7 additional hotels, +649 rooms) and SuiteHotel, the new brand in the group. SuiteHotel posts growth by +124.1%, with its portfolio rising from 3 to 6 hotels, and enters into a more active development phase. 

Louvre / Envergure holds its role as number 1 challenger but posts a drop in its supply by 2.8% with 791 hotels and 51,495 rooms. This drop results in the rationalisation strategy of the group’s brands: the brand Balladins was transferred to the French group RMH, the brands Nuit d’Hôtel and Bleu Marine are disappearing little by little. On the other hand, the group Envergure succeeded in the challenge to establish a new brand: just two years after it was launched, Kyriad has around 200 units and 10,000 rooms.

The 19.1% progress of the American group Choice (Comfort, Quality and Clarion) must also be observed with its supply of around 10,000 rooms at the beginning of 2003. Best Western and Six Continents, meanwhile, post very slight growth in their hotel portfolio and remain on the 3rd and 5th rungs. 

In the end, it is now necessary to go back to 1996 to find a year closing with a drop in the RevPAR despite the fact that the supply offered by hotel chains has not stopped growing in the last 20 years. Contrary to some of its European neighbours, until now, France has perfectly resisted the consequences of the terrorist attacks on September 11, 2001, which is a good omen for 2003.

Methodology

The business results reported in this study were extracted from a sampling of 2,000 corporate operated hotels in France representing 200,000 rooms. The data, collected hotel by hotel and month after month, are adjusted according to the distribution of the supply by category of corporate operated chains and depending on the weight of each country in the European Union.

The results of the Supply presented in this study bear on the whole of hotel groups established in France and on the all hotels in France. 

These results come from figures provided by hotel chains present in France and in Europe, for which MKG Consulting provides official statistics. The complete dossier relative to the hotel activity in France and in Europe will be published in the February/March issue of HTR magazine.

MKG Consulting has the number one hotel database worldwide outside the USA, with the best representation across all hotel segments.


 
 
Contact:

Georges Panayotis
+33 (0)1 56 56 87 90
bdd@mkg-consulting.com
http://www.mkgconseil.com
Also See: European Hotel Industry: Like Last Year, France is Doing Better than all its European Neighbours in 2002 / MKG Consulting / Jan 2003
European Hotel Industry: An Encouraging Month of October / MKG Consulting / Dec 2002
Europe’s Hotel Industry: France Posts Record Performance for September, 2002 / MKG Consulting / Oct 2002
Assessment of the Summer Season for the European Hotel Industry / MKG / Oct 2002


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