10
Mar 2005 - Paris has long been a feature of the Europe edition of the HotelBenchmark
Survey, but this is the first time that detailed markets within the city
have been available on HotelBenchmark.com. The new survey breaks the Paris
hotel market into 19 distinct markets, including key central areas and
airport markets. Greater Paris is also broken down by size of hotel, star
rating and average rate bands.
Paris hotel performance for selected markets
Year end 2004 compared to 2003 (€-Euros)
. |
Occupancy
% |
ADR
(€) |
RevPAR
(€) |
Change |
Greater Paris |
67.2 |
160 |
108 |
4.7% |
City of Paris |
67.3 |
180 |
121 |
4.3% |
Outer Paris |
67.0 |
96 |
64 |
4.5% |
Ile-de-France * |
69.7 |
113 |
79 |
-5.5% |
* excluding Greater Paris
Source: HotelBenchmark Survey by Deloitte
Despite a 4.7% increase in revPAR during 2004, hotel performance in
Greater Paris still has a long way to go to return to the giddy highs of
2000. At €108 revPAR in Greater Paris is still 16% below that reported
in 2000. The main reason for this is the significant fall in occupancy
the city has experienced over the last four years. Since 2000 occupancy
has fallen from a high of 79% to a low of 64% in 2003 before bouncing back
to 67% in 2004. Encouragingly, average room rates have remained relatively
steadfast during this period, as the city avoided discounting battles to
attract demand.
Hotels in the city of Paris (the 20 arrondissements) achieve a higher
level of revPAR than hotels located in Outer Paris, as the central location
naturally commands a higher average room rate. During 2004 average room
rates for hotels in the city of Paris were nearly 50% higher than that
reported by hotels in Outer Paris. Ironically despite improving demand,
hotels in Outer Paris reported a 1.8% decline in average room rates during
2004, compared to the 1.6% increase recorded by hotels in the city of Paris.
Performance in France continues to suffer from the relative strength
of the Euro, particularly to the US dollar, which is affecting the price
competitiveness of the market. There has been a concerted campaign to win
back American tourists following the diplomatic clash with France over
the Iraq War in 2003. While returning corporate business means Paris is
faring better than a number of regional leisure markets, performance still
has a long way to go to return to 2000 levels.
Commenting on the launch of the survey, Julia Felton, Executive Director
of HotelBenchmark at Deloitte said: "We are extremely excited to launch
a city survey for Paris and to be able to offer such a comprehensive and
detailed analysis on the different aspects of the market. As trading conditions
in Paris continue to be challenging, we are pleased to respond to the needs
of the industry by providing operators with a greater understanding of
the market dynamics."
The HotelBenchmark Survey is the leading provider of hotel performance
data across Europe tracking 226 markets in the region. The Paris and Ile-de-France
Survey is the 17th monthly performance survey to be launched by HotelBenchmark.
Note: All analysis in Euros
Markets covered in the Paris and Ile-de-France
survey
Ile-de-France
Greater Paris
City of Paris
Outer Paris
Ile de France (excl. Greater Paris) |
Paris - Town Centre
Paris - Left Bank
Paris - Right Bank
Champs Élysées/St Honoré
Louvre/Opéra/Le Marais
La Défense/Neuilly
Roissy/Charles de Gaulle Orly |
Greater Paris - 4 star & 4
star LUXE
Greater Paris - 3 star
Greater Paris - greater than 200€
Greater Paris - between 100 and 200€ Greater Paris
- greater than 200 rooms Greater Paris - between 200 and 100 rooms |
About Deloitte
In this press release references to Deloitte are references to Deloitte
& Touche LLP.
Deloitte & Touche LLP is the UK's fastest growing major professional
services firm based in 21 UK locations, with over 10,000 staff nationwide
and fee income of £1,246 million in 2003/2004.
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