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 The Riots in the French Suburbs: 
A Limited Impact on Hotel Activity

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Paris, 24 November 2005 
  • The riots in the suburbs of many French cities at the beginning of November 2005 have had only a small impact on hotel activity.
  • The business clientele have cancelled few business trips whilst leisure clients, traditionally not present in large numbers at this time of year, do not seem to be reduced. 
  • A return to ‘the norm’ should cancel out any effects of the riots. 
The performance results of hotel establishments which participate in the daily monitoring programme carried out by MKG Consulting, reveal a good resistance by French hotels which seem to be little affected by the riots. 

The riots in the suburbs have had a limited impact on the hotel activity over the first 15 days of November, including the outskirts of big cities, which one would have thought to be most affected by urban violence. 

EVOLUTION OF THE OCCUPANCY RATE OF HOTELS LOCATED WITHIN
THE PARISIAN SUBURBS FROM OCTOBER 20TH TO NOVEMBER 20TH 2005. 

Suburbs concerned by the riots - IDF : Evry, Grigny, St Denis, Clichy sous Bois, Trappes, Stains, Sarcelles, Aubervilliers, Argenteuil.
Source: MKG Consulting Database- official provider of hotel chains- November 2005

The daily analysis of the business of French establishments situated in the areas impacted by the violence but also in zones affected by the violence show little impact on the overall performances of the hotel industry. 

From the 8th to the 12th of November, the hotels would have registered their best performances during the period October 20th to November 20th (whatever the area) due to Batimat, (7-12 November) the international construction show at the south of Paris ("Porte de Versailles"). 

Business clientele have cancelled few business trips. The rate of leisure clients, who are more likely to be affected by important events, is traditionally not very high at this time of year and therefore will only slightly be down. 
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In the Parisian suburbs, hotel activity has been slightly impacted over the first fifteen days of November as the Occupancy Rate during the week remains high and equivalent to those of other towns within the Parisian outskirts: Occupancy Rate of 82% and of 80% for the weeks 45 and 46 in the suburbs affected by the riots. 

During the weekends of the first half of November, the Occupancy Rate of hotels located in the suburbs affected by the riots seems to have taken a small turn (Occupancy Rate of 68% for the weekends of the 43rd week against 62% and 57% for the weekends of the weeks 45 and 46) but remain above those in other towns within the outskirts of Paris. This slight drop in Occupancy Rate over the weekend period could be explained by the two long bank holiday weekends in France of November 1st and November 11th, 

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EVOLUTION OF THE OCCUPANCY RATE OF HOTELS LOCATED WITHIN THE SUBURBS OF THE PROVINCE FROM OCTOBER 20TH UNTIL NOVEMBER 20TH 2005


Suburbs concerned by the riots - Province : Evreux, Toulouse Le Mirail, Lille Sud, Roubaix, Mons en Baroeul, Lyon Bron, Vaux-en-Velin.
Source: MKG Consulting Database- official provider of hotel chains- November 2005

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Modelled on the towns within the Parisian outskirts, hotel activity in the suburbs affected by the riots recorded only a marginal impact: the Occupancy Rates during the week are slightly down over the first 15days in November but remain above the Occupancy Rates of hotels located in other towns within the Parisian outskirts. 

In fact, for the week 44 and 45, hotels in the suburbs affected by the riots show an Occupancy Rate of 64% and 77% respectively whilst over the same period, the hotels of the other towns in the Parisian outskirts present an occupancy rate of 50% and 68% respectively. 

For the weekend periods, the Occupancy Rate of the hotel establishments located in the suburbs affected by the riots dropped slightly (for the weekends of the weeks 45 and 46, the Occupancy Rate are respectively 46% and 56% against 71% for the weekend of week 43) This slight drop in Occupancy Rate over the weekend period could be explained by the two long bank holiday weekends in France of November 1st and November 11th.

It is important to note that the Occupancy Rate of hotels located in the suburbs affected by the riots remains above the occupancy rate of other establishments within the Parisian outskirts. This could, in part, be explained by an over-representation of ‘economy hotels’ located in the suburbs affected by the riots. 

Thus, the hotels located within the suburbs of Paris and other large cities in France have only been slightly affected. One should be able to rely on a steady period in December if the situation comes to halt, as seems to be the case. 

Images of the riots, which have been published around the world, could affect the level of reservations over the celebration period at the end of year.

Methodology

MKG Worldwide is the leader in Hotel, Tourism and Catering consulting, and has the largest database in the world, outside the USA, with a good representation of all hotel segments. The database of MKG contains a sample of 10,000 corporate chain hotels, representing 1,000,000 rooms. 

Since September 2004, the MKG Database offers a programme that allows the daily monitoring of hotel indicators for each hotel of a sample that in July 2005 already included 1,000 hotels. 

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Contact:

Georges Panayotis
+33 (0)1 56 56 87 90
georges.panayotis@mkg-consulting.com
www.mkg-worldwide.com

Central and Eastern Europe / Middle East
Vanguelis Panayotis
3 Nikis Av., Xenos Tower, Office 201
1086, Nicosia – CYPRUS
Phone: + 357 22 44 23 21
v.panayotis@mkg-ww.com
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Also See: Increased Average Rates and Improved Occupancy Continue Through First 9 Months of 2005 for European Hotel Industry; Business and Leisure Tourists Have Adapted to the Uncertain Environment / November 2005
April Results for the European Hotel Industry: Best Monthly Performance in 5 Years / MKG / May 2005
France Hotel Supply Drops Slightly for Second Consecutive Year; The Market Share of Corporate Hotel Brands Gaining on Independent Hotels Supply / March 2005
2004 European Ranking of Hotel Groups; Best Western Holds Top Position of 25 Brands in Europe / MKG Consulting / February 2004
With a RevPAR Increase of 7.4%, Austria Was an Island of Prosperity in the European Hotel Landscape in 2003; Chain Hotel Results in Europe - YTD December 2003 / February 2004


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