However, it should be pointed out that GOP levels rose dramatically between 1996 and 1998 thanks to the end of the recession and the effects of the Soccer World Cup which played a major role in reviving Average Daily Rates in French hotels.
 

Commenting on the perspectives for 2000 and 2001, KPMG hospitality partner Christian Laporte stated that he expected GOPs to remain stable thanks to continuing increases in revenue, largely attributable to the weak Euro which has stimulated significant increases in travel from the US and the UK. The cost side of the equation will, however, come under the combined pressures of reduced unemployment resulting in higher wage levels,  the application of the 35 hour working week and likely increases in energy costs. 
 

The buoyancy of the French hotel market has resulted in a steep rise in prices of hotels as investments. Nevertheless, the differential in real estate values between Northern and Southern Europe continues to make hotel investments in France an interesting proposition for Northern European investors. However, improved cash flows have reduced the urgency to sell under-performing units, leading to a limited number of transactions being recorded outside of a few major mergers and acquisitions.

At the same time, the increased cash flows have encouraged refurbishment and renovation programs as well as the recent appearance of a number of projects including new-build developments. While much development is concentrated on the periphery and in the near suburbs of Paris, several projects are in various stages of development in most of the principal towns and tourism destinations in France.

"L'Industrie Hôtelière Française" is an annual survey of the operating results of a panel of 1275 hotels distributed throughout France. The 23rd edition of this report is now available from the KPMG Tourism, Hospitality and Leisure Consulting office in Paris.