Understanding how the French book and search for information about their hotels is essential to adapt to new behaviors and uses. After a difficult year for hoteliers, the slow recovery from the health crisis should revive the sector and facilitate travel for tourists and business travellers. Here is a compilation of the key trends and figures for the hotel industry in 2021.
According to Insee figures, there were 29,313 tourist accommodation establishments in 2021 in mainland France and the French overseas departments and territories. Here are the different structures that can be found:
In October 2020, KPMG’s study on the French hotel industry already delivered some interesting data on the year 2020. During the first semester:
The KPMG study focused on palaces with a predominantly international clientele. 2019 had already been a mixed bag due to strikes and protests. The occupancy rate was 60.2% and the average price of a night was €1,061. In 2020, the closure of the borders led to an estimated 70% drop in turnover.
Although 2020 was a challenging year, the hotel sector remains resilient. Investors are maintaining their medium-term plans and their confidence in the market. The vision for the next two years 2022 and 2023 remains positive, with European tourism having an important role to play. The return to a good economic situation will depend on the reopening of the borders and the health risk.
According to the GNI I+C Observatory, the turnover of the hotel industry collapsed by – 74% in the 1st quarter of 2021 compared to last year.
In February, the Umih, a union of tourism professionals, warned about the economic situation of hotels. Although they do not have to close, they are greatly affected by the absence of foreign tourists. Some establishments therefore prefer to close to lose less money. The February school holidays still escaped the additional government restrictions.
The losses remain mixed. The high-end structures based in the big cities are the most affected by the lack of international clients. The decline in international travellers has affected Paris and the Côte d’Azur, which are dependent on international and business customers. The regional markets have managed to do well thanks to local leisure tourism.
Île-de-France is one of the regions most affected by the crisis. Jean-Marc Banquet d’Orx, president of Umih, announced in March that Paris and its surroundings had lost 15.5 billion euros in revenue by 2020. The occupancy rate in January 2021 in Paris was 14% for 80% in January 2020 and 15% in February.
In January 2021, Christie & Co, a specialist in hotel real estate, unveiled its annual barometer, which was rather positive: “56% of professionals even believe that 2021 will present opportunities”.
Bruno Juin, senior director of hotels at CBRE France confirms that investors continue to be present in France. According to him, the return to pre-pandemic levels is expected by 2024.
In 2019, the territory had recorded a record 215 million overnight stays, the hotel sector had recovered from the terrorist attacks, the market growth had increased by 8.5% between 2016 and 2019. The hotel industry’s share of real estate investment was considerable. In 2020, overnight stays dropped to 90 million, down 58.1%, and investment was down 66% from 2019, minus 9.4 billion.
However, the French market held up better than its European neighbours. Investors continue to show interest in the market and no wait-and-see attitude has been observed. Paris remains a preferred destination in the world and the French market is very attractive. The 2021 recovery is variably expected, but well expected.