The hotel market in France after the COVID-19 pandemic
Occupancy rate and revenue per available room (RevPAR) are two important metrics that can help understand the recovery path of the French hotel market. They measure how successful a hotel is in filling up its rooms and how much it can charge for them. After falling to under 35 percent in the first year of the health crisis, the occupancy rate of the hotel industry in France more than doubled in 2023, reaching just under 67 percent. Even though hotel occupancy remained slightly below pre-pandemic levels, hotel revenue per available room in France recorded a strong performance that year, rising by 23 percent from 2019 and peaking at nearly 80 euros. Breaking down hotel RevPAR in France by city leaves no doubt about which French destination generates the highest earnings: Paris.Paris’ contribution to the French hotel industry
As of 2024, regional data on the number of hotels in France shows that just two areas represented nearly a third of the over 16 thousand such accommodation services in the country: Auvergne-Rhône-Alpes, encompassing Lyon and the Mont Blanc massif, and Île-de-France, including Paris, Versailles, and the Disneyland theme park. In fact, when looking at the number of hotels in Paris, the French capital alone accounted for one in ten hotels in France in 2023. While three-star hotels represented the most facilities that year, it is reasonable to think that the luxury segment will play an ever-increasing importance in the City of Lights. The top-range and luxury market has experienced the highest increase in hotels over the last five years, as well as reporting the biggest hotel room offer in Paris.Overall, if 2023 has been a very positive year for the French hotel market, the outlook for 2024 sounds even more promising. With six dates of the Taylor Swift’s Eras Tour in the country and the Olympic Summer Games in Paris, hotels in France will have a unique opportunity to put the challenges of the COVID-19 pandemic to bed.
