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Summary
The global hotel market, valued at $735.38 billion in 2020, is forecasted to reach $1,789.51 billion by 2027, growing at a Compound Annual Growth Rate (CAGR) of 12.9%. This growth comes despite the significant impact of the Covid-19 crisis, which caused a dramatic drop in hotel sales, particularly affecting upscale hotels in tourism-focused regions like the Paris area. In France, hotel sales plunged by more than 50% in 2020 compared to the previous year, with the revenue per available room (RevPAR) experiencing a steep decline, especially in the Paris region and high-end establishments.
Evolving Dynamics and Resiliency in the French Hotel Market Amidst Digital Disruption
The French hotel market, much like its global counterparts, has undergone a pivotal transformation in recent years, attributed to a myriad of factors such as economic crises, societal changes, and most notably, the advent of digital technology.
From an occupancy perspective, rates in France have historically ranged between 55 and 65 percent, underlining the market's robustness amidst varied challenges, including global financial crisis, terrorist attacks, and socio-political unrest. However, the pandemic introduced an unprecedented impact, with foreign tourist numbers dwindling by more than 70 percent in the summer of 2020, significantly influenced by the drastic reduction in business travel.
Geographically, the hotel landscape is predominantly concentrated in the regions of Île-de-France, Auvergne-Rhône-Alpes, and Provence-Alpes-Côte d'Azur, with these areas seeing the highest number of hotels and available rooms. Île-de-France notably garners around 35 to 40 percent of French hotel sales but faced the sharpest decline amid the pandemic, primarily due to its reliance on business tourism and international clientele.
In terms of market structure, we see a broad array of players ranging from independent hotels to integrated chains. The independent sector, encompassing over 80 percent of the market share, indicates a landscape where family-run establishments with smaller capacities are predominant. This sector is complemented by voluntary and integrated chains, with established groups like Accor Hotels and Best Western forming a significant part of the market. Room rates across various hotel categories have been on an upward trajectory, with the exception of superior 5-star establishments, which have seen a slight decline in pricing.
This uptrend is reflective of the enduring demand strength, but also the nuanced needs of the market, where even highly-rated properties must adapt to the economic realities and competitive pressures. The digital realm has radically altered the way hotels are perceived and accessed by customers. Online Travel Agencies (OTAs) have captured a significant piece of the booking pie, leading to a tug-of-war with hotels over commissions, rate parity, and visibility.
Navigating the Landscape of Major Hotel Chains
Within the diverse sphere of the hotel industry, several major players command significant recognition and market presence. Each of these entities has crafted a unique path to prominence, through a blend of strategic expansion, brand differentiation, and customer loyalty programs. Their influence spans from the bustling cityscapes to serene holiday destinations, catering to a wide array of guests with their tailored services and amenities.
- Accor Hotels stands out as a global powerhouse in the hospitality sector, offering a vast portfolio that ranges from luxury to economy lodgings. Its distinct brands such as Sofitel, Novotel, and Ibis have become synonymous with reliable quality and international standards. Accor's adaptability to different market needs and commitment to customer satisfaction have rooted its position as an industry leader.
- Intercontinental Hotels Group (IHG) is renowned for its prestigious collection of hotels, including the InterContinental, Crowne Plaza, and Holiday Inn brands. IHG has carved out a reputation for delivering exceptional experiences in hospitality, whether for a business conference or a family getaway. Its Rewards Club program ensures that guest loyalty is duly rewarded, fostering a sense of community among its clientele.
- Marriott International has long been celebrated for offering a home away from home, thanks to its diverse brand portfolio, including the likes of The Ritz-Carlton, St. Regis, and JW Marriott. The Marriott Bonvoy loyalty program connects travelers to a universe of experiences designed to make every stay unforgettable. Marriott's commitment to excellence in every aspect of guest service consolidates its status as a titan in the hotel industry.
- Louvre Hôtels represents a dynamic entity in the market, showcasing brands such as Campanile, Kyriad, and Tulip Inn. Louvre Hôtels' strategic partnerships have extended its influence, particularly within the budget and mid-range hospitality segments. The group's responsiveness to evolving traveler expectations ensures its brands remain competitive and accessible.
- B&B Hotels offers straightforward, comfort-driven accommodations that cater to travelers seeking value without compromising on the essentials. Its straightforward approach to hospitality has earned B&B Hotels a faithful customer base that appreciates its consistent delivery of quality at friendly price points.
- Balladins is another significant name, particularly within the French hospitality market. Its commitment to offering comfortable stays with attentive service has established Balladins as a trusted brand, especially among domestic travelers.
- Best Western originally be known as a voluntary chain.
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- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 01/12/2021
Summary and extracts
1 Market overview
1.1 Presentation
The hotel industry represents the whole of the hospitality industry and its activities: it belongs to the tertiary sector and represents establishments that offer a hospitality service and, more specifically, lodging and/or meals to customers. This sector is therefore often associated with catering. However, this study focuses exclusively on establishments that are hotels, which may or may not provide catering services, and on the accommodation services they offer.
There are three different types of hotel:
- Independents: structures that do not belong to a hotel chain, own their own operations and are legally autonomous;
- Affiliates: also known as voluntary chains, are made up of traditional independent establishments that join forces to facilitate marketing;
- Integrated : operated by a hotel group or franchised
Worldwide, the hotel market is expected to grow at a CAGR (Compared Annual Growth Rate) of 12.9% between 2020 and 2027. This is a sector that experienced serious difficulties during the global health crisis linked to Covid-19, which accentuated the precariousness of certain players and certain regions, more or less focused on tourism than others. Nevertheless, growth prospects show that this type of accommodation continues to attract customers, even if the sector has not yet returned to pre-crisis levels.
In the French market, hotel sales fell by more than 50% in 2020, with some regions and hotel ranges seeing a sharper decline than others. This was particularly the case in the Paris region, where upscale hotels recorded the biggest losses.
The main players on the market are major multi-brand chains such as Accor Hotels, Intercontinental, Marriott and Louvre Hôtels, as well as single-brand companies such as B&B and Balladins, voluntary chains (Fast Hotels, Best Western) and independents.
1.2 The global hotel market
The global hotel market was valued at $***.** billion in ****, and is expected to reach $*,***.** billion by ****, at a CAGR of **.*% over the forecast period.
Hotel industry sales trends World, ****-*****, in billions of dollars Source: ****
The average daily rate (***) indicates the amount of revenue generated per room. The higher the ADR, ...
1.3 The French market in difficulty
According to INSEE figures, the French hotel market was growing moderately until ****, with sales increasing by over **% between **** and ****. This seemed to reflect a healthy market, closely linked to French tourism. But the years **** and **** changed the picture, with a **.*% drop in **** compared to ****, accentuating the difficulties of some of the ...
1.4 The impact of Covid-19 on the hospitality sector
Hotel supply adapted to demand throughout the year, but the two confinements did not translate in the same way in terms of hotel openings and closures. In March ****, hotels closed en masse. The opening rate fell by ** points in one month to **.*% in April. In the second lockdown, at the end ...
2 Demand analysis
2.1 Typology of demand
From the outset, there are two very different types of hotel customer. These are business and leisure customers.
Business customers include: executives, sales representatives (***), researchers, technicians, workers and the self-employed, who travel for varying lengths of time, depending on the work to be done on site. They are segmented as ...
2.2 General demand trends over the years
For several years, hotel occupancy rates in France have hovered between ** and **.*%, and this from **** to **** despite the economic crisis initially in ****-****, despite the attacks that occurred in **** and ****, and also despite the transport strikes and the yellow vest crisis in ****-****.
Change in hotel occupancy rates France, ****-****, in Source: ...
2.3 Hotels and chains in demand
For the purposes of this awareness study, the degree to which respondents were familiar with hotels was analyzed as follows:
TOP of MIND: the first brand or brand name spontaneously cited by respondents, the one that immediately comes to mind, as if by reflex. Spontaneous awareness: these are brands that can ...
2.4 Trends in hotel demand
The Internet changes the game:
With over **% of customers now searching for hotels via the Internet, the whole game has changed. In the past, customers would look for a chain or an independent hotel, depending on the type of trip they were planning: private weekenders or business travelers. Nowadays, customers are ...
2.5 France's favorite hotel companies
The graph below is based on OpinionWay's survey of the French people's favorite brands in March ****. These are respondents' answers to the question "Do you like this or that hotel company?" for each company, the percentage corresponds to the proportion of respondents who answered "yes". Gites de France is the French ...
3 Market structure
3.1 Market structure: hotel and staff typology
Necessary personnel
Organization chart of a typical hotel
Source: ****
Here's a non-exhaustive organization chart showing the structure of a hotel and the staff required to run it. obviously, the size of the establishment will have a huge influence on the number of staff, their functions, etc., but it does show the ...
3.2 Structure of the hotel industry in France: number, location, range...
French hotels
Number of hotels France, ****-****, in number of hotels Source: ****
In ****, there will be **,*** tourist hotels in France, and the number of hotels has remained fairly linear over the ** years between **** and ****. The number of hotels rose by *% between **** and ****, reaching a peak of **,*** hotels in ****. The decline in ...
3.3 Sales structure: distribution of reservations and sales breakdown
In the cost structure section, we detail the distribution channels through which hotel room reservations are made, as well as the breakdown of sales, which gives us an overview of the sector's cash inflows and outflows.
Distribution [***] Direct bookings : these are sales made directly with the hotel in question, whether via ...
3.4 the players
Integrated hotel chains
In ****, ** integrated hotel chains were identified, representing **% of sales for **% of hotels in France [***].
Market share of integrated hotel chains France, ****, in percent Source: ****
The two leading hotel groups in France are Accorhotels (***), which own three quarters of the hotels affiliated to integrated hotel chains.
Among the ** chains, ...
4 Offer analysis
4.1 Rising room rates
Price trends per room by hotel category France, ****-****, in euros, excluding VAT Source: ****
Between **** and ****, room rates in French hotels were all on the rise, except for superior ** hotels (***). Standard *-star hotels saw the biggest increase, up *.*% during this period, while *-*-star hotels saw their prices rise by *.*%, *-star ...
4.2 Online presence: OTAs as a major competitor
Two independent factors are making online life difficult for hotels:
The emergence of OTAs, which attract customers and even steal them from hotels by offering more attractive prices The neglect of hotels' e-reputation doesn't improve their visibility, leaving the field open to OTAs
With the digitalization of distribution channels, this weighs ...
4.3 Market trends
Hotel chains are looking to reclaim this mature market, taking inspiration from new-generation hostels and new players such as Airbnb, in order to adapt their offering to new consumer needs.
The de-standardization of hotel chains is just one example of how customer expectations are changing. According to Coach Omnium, whereas between ...
5 Regulations
5.1 Star classification
France's tourist hotels are subject to a new classification system introduced in ****.
This new classification makes it possible to review the positioning of hotels.
Hotel classification
Source: ****
In addition to the different categories of hotels rated from * to * stars, the key points of this reform are:
Stars awarded for * years, by ...
5.2 The rights and obligations of hotel professionals
Since January *, ****, hoteliers have been subject to new price information obligations (***). [***]
First of all, if you are setting up a hotel, before opening the establishment, the operator must obtain an opening permit from the prefecture. Following this, and after an on-site investigation, a conformity visa may be issued, followed by a ...
6 Positioning the players
6.1 Player segmentation
- Accor Hotels
- Intercontinental Hotels Group
- Louvre Hôtels Groupe
- B&B Hotels
- Hotels Balladins
- Best Western France
- Fast Hotel
- Booking.com
- Egencia France
- Amadeus
- Cepton - Vintura International
- Ibis hotel (Accor groupe)
- Radisson Hotels
- Marriott
- Logis Hotel
- Relais & Chateau
- The Originals Hotels
- Adagio Aparthotel
- Mercure (Accor groupe)
- Novotel (Accor Groupe)
- Campanile (Louvre Groupe)
- Kyriad (Louvre Groupe)
- Sofitel (Accor)
- Passman
List of charts
- Hotel industry sales trends
- Comparison of ADR (average daily rate) in the hotel industry, by region
- Change in sales excluding VAT for NAF code 55.10Z "Hotels and other accommodation"
- Change in hotel occupancy rate
- Number of hotels by department
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Latest news
Sébastien Bazin has transformed Accor in 10 years | Accor: Bazin's transformation in 10 years - 07/09/2023
- Sébastien Bazin has been CEO of Accor since August 27, 2013.
- Accor will have 5,487 hotels in 2021, compared with 3,500 in 2013.
- The group has 46 brands in 2021, compared with 13 in 2013.
- Accor has become number one in hotels in the Middle East, Asia-Pacific (excluding China) and Latin America.
- Accor spent 6 billion euros on acquisitions.
- The group earned 8 billion euros mainly from the sale of hotel properties.
- Accor owns 30% of AccorInvest, which manages 800 hotels.
- Accor's largest shareholder is China's Jin Jiang, with a 12.8% stake.
- Accor is ranked number six worldwide in the hotel industry by MKG.
A new boss and a new start for Louvre Hotels Group - 11/05/2023
- LHG (Louvre Hotels Group) is France's number 2 hotel group, a subsidiary of the Chinese conglomerate Jin Jiang.
- Jin Jiang is the world's number 2 in the hotel sector (1.2 million rooms under its brands for just over 12,000 hotels, according to MKG).
- Popular LHG brands in France: Première Classe, Campanile, and Kyriad.
- LHG absorbed the Dutch Golden Tulip in 2009.
- The Campanile brand has 65 units in China, with a further 47 announced.
- LHG boasts over 500 hotels in operation in China.
- The group acquired the Indian hotel operator Sarovar and continued to distribute the Golden Tulip brand.
- LHG has around 1,700 hotels in some 60 countries.
- In 2017, LHG acquired a "majority stake" in the French network of independent hoteliers Hôtels & Préférence.
- Radisson Hotel Group represents 1,100 hotels and over 200,000 rooms in operation and under development.
- Jin Jiang has been Accor's largest shareholder since 2016 (12.92% of share capital and 16.82% of voting rights at December 31, 2022).
Adagio: a new era - 28/03/2023
- Aparthotels to open in France, Europe and Africa in 2023.
- Adagio, Appart'City and Adagio, France's leading aparthotels, base their offer on three ranges: economy, mid-range and top-of-the-range.
- Adagio Access represents the entry-level range, Adagio Original the core range and Adagio Premium the exceptional establishments.
- 11 new aparthotels are scheduled to open in 2023 in France, Germany, Belgium, Italy and the UK.
- Adagio will also open its first aparthotel in Côte d'Ivoire, the Adagio Original Abidjan Marcory, comprising 100 studios and apartments.
- Openings are planned in France in Montpellier, Lyon, Toulouse, Boulogne-Billancourt and Rouen throughout 2023.
Relais & Châteaux expands - 01/03/2023
- Grand Hotel Mas d'en Bruno: 24 suites, 3 restaurants, spa, pool, opening May 19
- Helguera Palacia Boutique & Antique: 1 room and 10 suites
- Pepe Vieira Restaurant & Hotel: 14 "galpones", 2-Michelin-star restaurant and one green star
- Zilte: 3-star Michelin restaurant in Antwerp, Belgium
- Restaurant La Merise: 2-star Michelin restaurant in a 600 m² building in France
- Tributary Hotel & Restaurant Okta: 8 suites, 26-seat restaurant, located in the United States
- Mii Amo: 23 casitas and suites, all-inclusive stays, 75-seat restaurant, located in the U.S
- Naborioji Hotel Nara & Restaurant Le Bois: 9 rooms, 4 suites, 40-seat restaurant, renovated in 2022, located in Japan
Record 2022 for The Originals Human Hotels & Resorts - 22/02/2023
- Centralized sales in 2022: €110 million (up 9% on 2019).
- 1.1 M overnight stays in 2022 at an average price of €101.
- Share of direct sales: 34% in 2022 (29% in 2019), i.e. +10 M€ between 2019 and 2022 in direct volume.
- Market share: +5 points between 2019 and 2022. 6. E-commerce activity: sales of €5.2 M in 2022 (+53% vs. 2019).
- Shared customer base: 550,000 (up +38% vs. 2021).
- Sales generated by newsletters: 4 M€ in 2022 (+22% vs. 2021), of which 55% by members of The Originals Club loyalty program.
Strong growth for Radisson Hotel Group in 2022 - 19/01/2023
- Radisson Hotel Group aims to become one of the world's top three hotel groups.
- Radisson Collection introduced six new hotels in 2022 and plans four more additions in 2023.
- Radisson RED opened four hotels in 2022.
- Radisson Blu has expanded in several countries, including South Sudan, Romania, Madagascar, the UK and Spain.
- Radisson remains the fastest-growing upscale brand in the EMEA region.
- Radisson Individuals has increased its portfolio by more than 20 establishments by 2022.
- Prizeotel opened three new hotels in 2022.
- Radisson Hotel Group has 130 resorts in its portfolio.
- The Group's growth in Asia-Pacific was notable, with a 40% increase in signatures compared to 2021.
- In China, the Group has signed and opened 80 hotels, with the ambition of doubling its Chinese portfolio over the next five years.
- A strategic alliance in India with Ruptub Solutions Private Limited added 150 hotels to the Park Inn & Suites by Radisson portfolio.
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