French hotel sector sees steady performance amid global tensions

Despite facing headwinds from global political uncertainty, France's hotel sector managed to maintain a steady pace in February, driven by a packed calendar of events and rising consumer interest.

Paris leads charge with 5% revpar growth

Paris and surrounding Île-de-France region took the lead, with RevPAR increasing by 5% to €141 before tax. Strong demand, paired with pricing power, especially in the mid-range hotel segment, propelled results beyond prior levels.

A diverse lineup of events, including Wine Paris & Vinexpo, Six Nations rugby matches, Valentine's Day, and Chinese New Year celebrations, drew visitors and boosted corporate travel alongside leisure stays.

Riviera and urban hotels also see gains

The French Riviera bounced back, with occupancy rising 4 percentage points to 53% and average daily rates increasing 5% to €107 before tax. As a result, revenue per available room jumped 9% to €56 net of VAT, fueled by events in Cannes and Nice.

Urban hotels across the country also held steady, with occupancy up 2 points to 64%, though average daily rates dipped 1% to €76 before tax. Revenue per available unit still edged up 1% to €49 excluding VAT, driven in part by strong performance in Île-de-France.

Challenges remain amid global uncertainty

While the sector's February results demonstrate resilience, challenges persist, particularly in regions that haven't benefited from a busy events schedule. Global tensions, meanwhile, require hotel operators to stay agile and adjust rates accordingly to navigate shifting market conditions.

Looking ahead to spring, the hotel sector is poised to maintain momentum, with ongoing events and steady demand expected to drive growth. However, the road forward will be uneven, with hotels in lesser-performing areas needing supportive environments or targeted strategies to thrive.