KPMG study reflects the crisis

It's no surprise that the French hotel industry has been hard hit by the crisis. The 32nd edition of the KPMG study, which examined the results of 2,700 hotels (representing 36% of the total in France), bears witness to this plunge in all categories.

Compared with 2008, average occupancy rates at the end of August 2009 were down by between 3.6 points for one-star hotels (64.5 %) and 6.7 points for four-star hotels (63.6 %). The top-of-the-range hotel sector was impacted in particular by a drop in its business clientele. Business travellers have moved downmarket, from four-star to three-star hotels, and from three-star to two-star hotels. "This situation is likely to persist this winter, as companies will continue to apply the same measures in 2010," says Stéphane Botz, manager of tourism, hotels and leisure at KPMG, who does not expect a recovery before the end of next year. Only urban residences seem to be doing well.

Against this backdrop, average prices fell in the higher categories, to 176 euros in four-star hotels (-9.5 % compared with August 2008) and 87 euros in three-star hotels (-1.3 %). The trend is the opposite for two-star hotels (+3.7 % to 61 euros) and zero or one-star hotels (+5.6 % to 41 euros), as these hoteliers have chosen to compensate for lower occupancy rates by increasing their rates.