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June 2025: sunshine for the French hospitality industry

  • m.welsch
  • 25 July 2025
  • 2 minute read
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This article was written by HospitalityOn. Click here to read the original article

image

Entry-level hotels are on the rise again

Tendances France Juin 2025 par Hospitality ON 

The performance of entry-level hotels has been fluctuating wildly lately, swinging from green to red depending on the month. After being in the red last month, the low-cost and budget segments are back in the black in June, with RevPAR up 5.4% and 8.3% respectively.

This upturn in activity for these properties can be explained by travellers’ reduced purchasing power, but also by people going on holiday earlier than the official start of the summer holidays. Although the summer holidays officially began on 5 July, it is likely that many families took the liberty of leaving earlier to avoid traffic jams, crowds and higher prices.

Meanwhile midscale and upscale hotels continued to perform well, with double-digit RevPAR increases (+13.5% and +20.2%). The upscale segment continues to lead the way with the strongest increases in both occupancy rates (+5.4 points) and average daily rates (+12.6%).

The upscale segment is also the only one to show an increase in occupancy rates compared to June 2023 (+1 point), demonstrating its unfailing resilience. The return of international customers, particularly from Asia, is obviously a factor in this dynamic.

CoStar: U.S. Hotel Industry Improves Monthly Performance
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CoStar: U.S. Hotel Industry Improves Monthly Performance

A fairly consistent dynamic across the region

Tendances Régions juin 2025 par Hospitality ON 

While most regions saw a decline in occupancy rates in May, the opposite is true for June, with the exception of Auvergne-Rhône-Alpes (-1.6 points), Pays de la Loire (-0.7 points) and, to a lesser extent, Occitanie (-0.1 points).

Auvergne-Rhône-Alpes has recorded the sharpest decline in visitor numbers for two consecutive months due to a variety of factors, ranging from disruptions to the TER regional train network, weather conditions alternating between extreme heat waves and violent storms, the cancellation of events for budgetary reasons, and a catering sector under…

Please click here to access the full original article.

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