Paris attacks cost French hoteliers €270m

Europe News
Paris attacks cost French hoteliers €270m

French hotels are estimated to have lost €270m (US$294m) from last November’s Paris attacks.

Research firm MKG Group said French hoteliers’ lost revenue could continue to have an impact on hotel occupancy rates.

The hospitality research firm said the sector was still suffering in January 2016, but there was some prospect of a recovery from mid-February, provided there are no more incidents.

Improving economic conditions, the Euro 2016 soccer tournament (to be held in France in June) and various high-profile trade fairs, should help hotel room demand this year, it added.

The French capital has been on high alert since 130 people were killed in shootings and suicide bombings in Paris on 13 November.

“We estimate the revenue shortfall for the French hotel industry at €270m, of which €146m was for Paris alone,” Vanguelis Panayotis, director of development at MKG told reporters.

MKG’s estimate is for the November 2015 to March 2016 period.

AccorHotels is among the chains reporting a negative economic impact from the attacks, with fewer last-minute bookings for the second half of December compared with a year ago.

Overall French hotel occupancy rates fell by 0.3 percentage points in France to 65.4% in 2015 while RevPAR (revenue per available room) rose 0.1%. In Paris alone occupancy rates fell by 3.4% and RevPAR 3.7% in 2015, MKG data also showed. ($1 = €0.9199).

France is the most-visited country in the world, with Paris hosting 32.2m visitors last year.