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Summary of our market study
The global French hotel market is valued at over €22 billion
The global hotel market, valued at $735.38 billion in 2020, is expected to reach $1,789.51 billion in 2027, with a compound annual growth rate (CAGR) of 12.9%.
The Covid-19 crisis caused a dramatic drop in sales, but the market has recovered to pre-crisis levels
In France, hotel sales fell by over 50% in 2020
Dynamics of the French hotel market
Occupancy rates in France have always fluctuated between 55% and 65%. The pandemic had an unprecedented impact, with the number of foreign tourists dropping by over 70% in the summer of 2020, but returning to normal levels with the return of tourists.
Île-de-France accounts for 35% to 40% of French hotel sales.
There is a wide range of players, from independent hotels to integrated chains. The independent sector, dominated by small, family-run establishments, accounts for over 80% of market share. Franchised and integrated chains account for a significant share of the market. Room prices in the various hotel categories are on the rise, with the exception of the top 5-star establishments, which are experiencing a slight price decline.
The digital world has radically changed the way hotels are perceived and consulted by customers. Online travel agencies (OTAs) have taken a major share of bookings.
Some major hotel chains
- Accor Hotels stands out as a global powerhouse in the hotel sector with itsSofitel, Novotel and Ibis brands.
- Intercontinental Hotels Group (IHG) is renowned for its prestigious collection of hotels, including the InterContinental, Crowne Plaza and Holiday Inn brands.
- Marriott International holds a broad portfolio of brands, including The Ritz-Carlton, St. Regis and JW Marriott.
- Louvre Hôtels represents a dynamic entity in the market, with Campanile, Kyriad and Tulip Inn.
- B&B Hotels offers simple, comfortable accommodation for travellers looking for good value for money.
- Balladins
- Best Western was originally a voluntary chain.
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Summary and extracts
1 1. Market overview
1.1 Definition and scope
"Hospitality is the art of making another feel at home," according to Maya Angelou. This quote underlines the very essence of hospitality, which is to welcome and create a place in which guests feel at home.
The hotel industry in France is a veritable pillar of the tourism economy. It attracts millions of visitors every year, making France the world's leading tourist destination.
The hotel industry in France dates back several centuries, with the first inns appearing in the Middle Ages to welcome travellers. Over the centuries, the sector has become more professional and diversified, with establishments ranging from prestigious palaces to budget hotels, as well as innovative concepts such as boutique hotels and eco-friendly accommodation, which are becoming increasingly popular.
The market is made up of independent, more authentic players, as well as large chains that are beginning to play an increasingly important role in the hotel industry. For example, the Accor group remains the leader in France, offering hotels of all ranges: from luxury hotels, such as Sofitel and Pullman, to budget options like Ibis and Novotel.Other international chains are also present, such as Hilton, Marriott...
In 2023, the French hotel market remains very dynamic after an inevitable pandemic-related downturn, attracting nearly 90 million tourists, both domestic and international.
However, the industry has undergone profound changes in recent years, spurred on by technological advances, such as the integration of AI into logistics processes, as well as changing consumer expectations. With the rise of online booking platforms, such as Airbnb, and the increasing power of digitalization, traditional players must adapt to meet increasingly demanding and connected customers.
What's more, hotels must adapt to the ecological awareness that their customers are increasingly developing. Indeed, in 10 years' time, almost 42% of French people are ready to adopt increasingly eco-friendly vacations, even if this means making a few concessions, demonstrating the impact that sustainable tourism will have on the hotel industry.
However, the hotel industry is still subject to a number of uncertainties and exogenous factors, which were clearly revealed during the pandemic, with drastic declines in sales in particular, as well as an inflationary context that continues to increase costs in terms of gas and electricity in particular, as well as salary increases.
The hotel industry in France is therefore a very dynamic sector, constantly innovating, evolving and reinventing itself.
1.2 Global market
The global hospitality market is expected to grow from $***.** billion in **** to $**** billion by ****, at a CAGR of *.**%, according to Indian market research specialist Exactitude Consultancy. The firm believes that the market should be driven by rising GDP in most countries, increased consumer travel spending, reasonably priced air tickets and an ...
1.3 French market
Hotels are included in themarket supply of tourist accommodation in France , representing almost **.*% of this supply in ****.
Breakdown of commercial tourist accommodations France, ****, in Source: ****
France is one of the world's leading tourist powers and therefore has a substantial supply in terms of hotels with almost ***** hotels in France, a figure ...
2 2. Demand analysis
2.1 Hotel occupancy in France: the capital is a strong magnet, especially for foreign guests
Hotel customers in France can be divided into different categories: foreign tourists and French residents on vacation or business.
Breakdown of hotel occupancy by customer origin France, ****-****, in % of overnight stays Source: ****
Foreign non-resident segment
Let's analyze the segment of foreign tourists coming to France. We note that this figure ...
2.2 French tourism expectations are changing
Today, we are witnessing a rise in environmental considerations in tourism, which can be explained by various factors such as :
Greater awareness of environmental issues A growing awareness of the effects of mass tourism on the environment The growing influence of a new generation that is much more sensitive to environmental ...
2.3 Hotel selection criteria
Customer consumption habits
According to the graph below, we can see the main criteria used by the French when choosing a hotel.
When choosing a hotel, location is the main criterion, whether for business or leisure travelers, according to a survey realized in **** by Coach Omnium among *** French and European hotel ...
3 3. Market structure
3.1 Macroeconomic structure of the sector
Data provided by Urssaf based on NAF code **.**Z illustrate the evolution of the number of establishments in the hotel sector in France between **** and ****. Notable observations include: Overall, the number of hotel establishments has shown a certain stability over the period from **** to ****. Fluctuations are present but concentrated over a ...
3.2 The main players in France
Different types of players
The French hotel industry is made up oftwo main types of player:
Independent hotels make up a large part of the market, with a diversity of sizes, styles and services, from small family-run inns to boutique hotels. Their strength often lies in their authenticity and local roots. Hotel ...
3.3 Loads
Let's take a look at the main costs involved in the hotel business.
Below, we can see a sharp rise in the price of energy, i.e. gas and electricity, due in particular to the war in Ukraine and the geopolitical and inflationary context.
energy
Evolution of energy prices sold to ...
4 4. Offer analysis
4.1 Offer typology
France's hotel offer is highly diverse, meeting the varied needs of tourists and business travelers.
This typology can be segmented into several categories based on the number of rooms offered, comfort and hotel range (***).
Hotels can be classified according to the number of rooms, which often reflects the size of the ...
4.2. Hotel pricing
Consumer prices in the hotel industry
The rise in consumer prices in the hotel sector is the result of a number of economic factors, including rising inflation in France, the resurgence of tourism following the pandemic, and the seasonal nature of the sector.
Consumer prices in the hotel industry France, ****-****, ...
4.3
Moving upmarket
Upmarket hotels are a key trend in the hospitality industry, responding to changing consumer expectations and growing competition. We're seeing anincrease in the quality of services, improved infrastructures and afocus on the customer experience.
Hotels are investing in tailor-made experiences to meet their customers' expectations and deliver a memorable ...
5 5. Regulations
5.1 Hotel classification
French regulations governing the hotel industry are mainly codified in the Tourism Code. It defines the roles and responsibilities of professionals in ensuring customer protection and safety, and can be accessed at Legifrance.gouv.fr.
Hotels are classified into categories (***)according to their equipment, comfort and services. This classification, although optional, ...
5.2 Pricing
Hotel prices are free and may vary between establishments of the same category.
Beverage and food prices must be displayed in the dining room or bar. Telephone rates must also be communicated to customers.
Hoteliers must display certain prices at reception and outside the hotel, including [***] :
The price for a night ...
5.3 Safety rules for establishments open to the public (ERP)
Hotel owners must comply with ERP safety regulations[***].
ERP are designed to enable the following actions[***]:
rapid and orderly evacuation of all persons, or their sheltering if necessary
Intervention of emergency services
Limit the spread of the fire by using appropriate materials and equipment
For the application of safety regulations, an ...
6 Positioning the players
6.1
The **** ranking of hotel groups in France[***] reflects the market dynamics and varied strategies of the leading players, highlighting differentiated growth and modernization initiatives to meet the challenges of the sector.of the market's leading players, highlighting differentiated growth and modernization initiatives to meet the sector's challenges.
Overall ranking :
Accor maintains ...
- 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
- Appart’City
List of charts presented in this market study
- Hotel market trend in value (estimates based on an average annual growth rate of +9.58%)
- Annual hotel occupancy rates by world region
- Revenues of the world's leading hotel chains
- Sales trends in the French hotel industry
- Change in hotel market performance
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Latest news
Laurent Gardinier or the life of a castle - 01/07/2024
- - Relais & Châteaux Association: Over 70 years old
- Number of affiliated hotels: 580
- Presence in 60 countries
- Groupe Gardinier: present in wine, haute gastronomy and hotels
- Brands and properties : Domaine Les Crayères in Reims, Drouant, Groupe Taillevent, Le Comptoir du caviar and 20% of Domaine de Baumanière in Les Baux-de-Provence
B&B Hotels accelerates under the aegis of Goldman Sachs - 27/06/2024
- B&B Hotels acquires 23 Ibis hotels in France, in conjunction with Grape Hospitality.
- - Negotiations underway for the purchase of 30 hotels from AccorInvest in Germany, with a transaction that could approach 100 million euros.
- - B&B already has fewer than 200 establishments in Germany.
- - By 2022, some 30 Accor hotels will have come under the B&B banner.
- - Launch of B&B Hotels in the United States, with a first establishment in Orlando, Florida, and three other projects underway.
- - In the United Kingdom, exclusive negotiations to operate five establishments under the Penta banner.
- - The French group aims to own around 3,000 hotels by 2030.
- - Opening of the first B&B Home establishment, designed for long and medium stays.
Accor aims to revitalize the Ibis, Novotel and Pullman brands - 18/06/2024
- 46 brands divided into two categories:
- - Luxury hotels (Raffles, Fairmont, Sofitel) and lifestyle hotels (Mama Shelter, The Hoxton).
- - establishments from entry-level to premium, with a focus on Ibis, Novotel and Pullman.
- - Novotel: 580 hotels.
- - Ibis: 2,500 hotels.
Cruises, luxury, hotels: Marriott's ogre-like appetite in France and Europe - 06/06/2024
- world leader in the hotel industry
- Evrima, the first yacht in the Ritz-Carlton collection.
- In September, launch of a second model
- A third vessel under construction
- Acquisition of Starwood, in 2016, made it the world leader in hotels, with nearly 9,000 establishments and over 30 brands (Sheraton, Le Méridien, Courtyard)
- Sales of over $23 billion in 2023.
- The group has 69 hotels in France, and another 20 in the pipeline, half of which will open before the end of 2025,
- LVMH present in the hotel business under the Cheval Blanc, Belmond and Bulgari banners
Tourism: record year for Accor, more profitable than ever - 22/02/2024
- - Accor has recorded growth in revenue per available room of +22.7% in 2023.
- - The hotel group's sales increased by 18% to reach 5 billion euros in 2023.
- - The Premium, Midscale and Economy division, which accounts for just over half of revenues, grew by 17%.
- - The Luxury and Lifestyle division grew by 22% and contributed 41% of sales.
- - Accor's net income in 2023 was 633 million euros, compared with 402 million in 2022, an increase of 57%.
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