L'agenceur Magazine n°76

A BITTER GOLD MEDAL FOR THE HOTEL INDUSTRY

The long-awaited Olympic boom did indeed materialize for the hotel sector. While perhaps not as spectacular as hoped, the initial figures reveal an exceptional fortnight: according to consulting firm MKG, France’s hotel industry generated €652 million in revenue between July 23 and August 11. That’s nearly double the figure for the same period in 2023. The Olympic effect was, of course, driven by establishments in the Greater Paris region, with €92 million for the City of Paris and €200 million for the surrounding départements. The occupancy rate—the sector’s key indicator—in the capital and nearby easily exceeded 80%, sometimes reaching 90% in the high-end segment, thanks in particular to the privatization of properties by sponsors, large international companies, and certain media outlets. On average, room rates also rose by 118% compared with last year. Enough to bring a smile? Yes, but…

The tree that hides the forest

While these results are satisfying, they offset a more than mixed 2024, in which the Olympic bright spell cannot hide a rather gloomy summer. In Paris, three periods stand out: before, during, and after the Olympic competitions. The drop in activity was evident from early July, following May and June that were already relatively complicated due to fickle weather. The spread of remote work, the postponement of professional events, the crowding-out effect on “regular” tourists, and the gradual emptying of the capital depressed hotel results (and the picture is similar, if not worse, for restaurants). In the first half of July 2024, Parisian hotel revenue fell by 27% compared with the previous year… And although not as negative, the pattern repeated after the Games, when hotel occupancy rates fell back to between 40% and 50% right after the closing ceremony—lower than in 2023.

Only the two Olympic weeks therefore “saved” the sector from a mediocre summer. But can something truly be both the cause and the solution?

Brice Alexandre ROBOAM