Hotel Online  Special Report
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Results for Hotel Chains per Category,
in France in 2005
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January 9, 2006 - In accordance with the forecasts of MKG, the rise of RevPar for French hotels exceeds 3% in 2005
  • RevPAR in rise of 3,1% over the year 2005, drawn by a progression from the average prices of 2,3%
  • Occupancy rates in light increase (+0,5 point over the year 2005)
  • The economic and 4* categories post the best performances
After a delicate year in 2003 for the French hotel industry, the engaged renewal of activity in 2004 is confirmed in 2005: all categories included, at a constant sample, the RevPAR records an increase of 4%. At a variable sample, the increase of the RevPAR is of 3% and is supported by a progression of the average price of 2,3%. Over the year 2005, the occupancy rate has slightly increased with a rise of 0,5 points.

Once more, and this since many years, these developments fit perfectly with the forecasts resulting from the econometric models of MKG Consulting, established at the end of 2004, which counted for 2005 on a RevPAR growth ranging between 3% and 5%.
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Hotel results for integrated hotel chains
per category, in France in 2005
- Preliminary results -
Occupancy rate 2005  Occupancy rate 2004  OR spread (pts)  Average daily rates 2005  Average daily rates 2004  Evolution ADR %  RevPAR 2005  RevPAR 2004  Evolution RevPar %
0*/1* 71,7%  71,8% -0,2  33,7  32,4  4,1  24,2  23,3  3,8
2* 67,8%  66,7%  1,1  58,6  57,5  1,9  39,8  38,7  2,7
3* 62,7%  63,0%  -0,3 86,2  83,8  2,9  54,0  52,8  2,4
4* 64,7%  61,6%  3,0  179,7  180,0  -0,2  116,2  111,1  4,6
GLOBAL 67,3%  66,8%  0,5  73,8  72,1  2,3  49,6  48,2  3,1
Source : MKG Consulting database – Official supplier of chain hotels - January 2006
Average daily rates and RevPAR in euros (Including all taxes)
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The economic and 4* categories post the best performances.

On the super-economic segment, the growth of RevPAR results from the favorable trend of the average prices. The occupancy rate is in very light fall of 0,2 point in 0*/1 *. In spite of the development of the supply during the last years, the occupancy rate of the super-economic segment remains at a high level (71,7%).

The 2* segment on its side posts a rise of 1,1 points for the occupancy rate and an improvement of 1,9% for the average price.

Concerning 3* hotels, the rise of 2,9% of the average price makes it possible to compensate for the light retreat of the occupancy rates (-0,3 point) which are posted in 2005 at 62,7%.

It is the 4* hotel category that realizes the best performance in 2005 in terms of progression of the RevPAR (+4,6%). In 2005, the awaited rebound of the demand was confirmed. Despite everything it was accompanied by a strong price moderation, the average prices decreasing by only 0,2 points. This stability demonstrates the strong competition in which the establishments of this category are engaged.

Among the principal outstanding facts of the year 2005, one will retain the following:

  • The recovery was initiated from the very start of the year with a 1st quarter that posted a progression of RevPAR, all categories confused of 1,9%. This growth then accelerated over the second semester.
  • The summer period did not disappoint in spite of certain fears (indeed the summer period in 2004 and 2003 had been disappointing); 2005 confirmed a good season for the Riviera in particular.
  • November has been an excellent month recording the biggest monthly increase in RevPAR in 5 years (+11,3%). In Paris particularly, the hotel activity was instigated by Batimat 2005, the international Construction show. The last edition of this biannual show dates back to 2003, which makes it possible for hotels to post a marked differential in comparison to 2004.
  • In spite of an alarmist international media coverage on the events that have occurred in the French suburbs during November, the preliminary results of the daily program of MKG Consulting confirms a good month of December, in particular for 4* hotels that recorded a 10,3% progression of their RevPAR.
  • Concerning the 4* hotel category, the segment strongly dependent on international customers benefit from several positive factors in 2005, such as the euro/dollar parity that benefited the Americans and the recovery of the international "long haul" air traffic.
In a context of an unfavorable conjunction of circumstances (Bird flue, the rejection of the European constitution in France, the failure of the candidature of Paris for the OG, riots in the suburbs), 2005 confirms once again the solidity of the French hotel industry whose RevPAR decreased only once since 1997 (-2,4% in 2003).

Méthodologie

MKG Consulting is the leader in consulting for the Hotel, Tourism and Catering sector, and has the largest hotel database in the world outside the USA, with a good representation of all the hotel segments. MKG database’s monthly program is based on a sample of 10 000 corporate chain hotels, representing 1 000 000 rooms.

Since September 2004, the MKG Consulting database proposes a program that allows the daily monitoring of activity indicators for each hotel. This program counts 1 500 hotels and 125 000 rooms in France which makes it the most developed daily program in Europe.

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Contact:

Georges Panayotis
33 (0)1 56 56 87 90
georges.panayotis@mkg-group.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
The Riots in the French Suburbs: A Limited Impact on Hotel Activity / November 2005


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