Slight growth in revenue per room for the mid-range (+0.1%), top-of-the-range (+1.5%) and luxury (+0.2%) segments, weakness in budget hotels (-2.0%) and a continued decline in super budget hotels (-3.5%): this is the overall picture of 2014 drawn by Deloitte. The Paris hotel industry, while still recording well over 70%, was not as strong a driver as in other years. Luxury hotels in particular fell back (-4% in turnover) due to the arrival on the market of new establishments, but also to a lesser presence of Russian customers. By contrast, the other categories recorded a slight increase.
While the Côte d'Azur hotel industry, which is more oriented towards foreign clientele, showed a degree of stability in its results, the provinces, which are more dependent on domestic economic activity, struggled more. The average price fell in all categories, but was offset at the top end of the market by an increase in occupancy.
The major French conurbations recorded an overall decline in revenue per room, which was particularly noticeable in Marseille - which did not benefit from the European Capital of Culture 2013 effect - but also in Lyon. On the other hand, Strasbourg and, to a lesser extent, Bordeaux and Lille are among the most dynamic cities. Deloitte also notes that there has been a more marked fall in the prices of hotels on the outskirts of cities, as customers are more inclined to move to city-centre hotels, which have offered more attractive rates.
On the residences side, the market is marked by a general increase in visitor numbers, but also by an overall fall in average prices. According to Deloitte, this trend can be explained by the sector's refocusing on its core business - medium and long stays - rather than on the transient clientele. As a result, while visitor numbers are more regular and higher, average prices are falling as a result of the degressive rates on offer.
What can we expect for 2015? "Although economic growth is not expected to be very high, things will improve. What's more, the weakness of the euro is a favourable factor, particularly for attracting Anglo-Saxon customers, who are driven by dynamic economies", explained Olivier Petit, Hospitality partner at In Extenso. All in all, Deloitte expects revenue per room to grow by between 1 and 3% in the luxury segment, between 2 and 4% in the top-of-the-range segment and between 1.5 and 3% in the mid-range segment. On the other hand, the economy segments should continue to see their results decline.
