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France Hospitality Market Analysis

The Hospitality Industry in France Market size is estimated at USD 20.82 billion in 2024, and is expected to reach USD 22.48 billion by 2029, growing at a CAGR of 1.55% during the forecast period (2024-2029).

After an unprecedented year in 2020 due to COVID-19, 2021 marked the slow recovery of hotel industry performances toward their pre-crisis levels in France. Several phases were identified, with the first half of the year still very much affected by COVID restrictions, followed by the second period of clear improvement, driven by the coastal regions and the French province from the summer onwards, and finally, a gradual recovery in Paris at the end of the year. Overall, the French hotel industry closed in 2021 with a 43% drop in turnover compared to 2019.

The French hotel sector performance indicators continued to improve during 2022, confirming the positive trend observed for the entire first quarter of 2022. Although still down from the March 2019 performance, occupancy increased eight points compared to February 2022, reaching 56%. RevPAR also showed a slight increase during March 2022, but it remains down 3% from 2019 performance. Only the average revenue per room rented confirmed its increase compared to 2019, posting an 8% increase to EUR 95 (USD 101.3) in March 2022.

While encouraging for the coming months and the sector's recovery, this upward trend is likely to be impacted by continued inflation, rising wages, and energy prices due, in particular, to the war in Ukraine.

France has large leading international hotel groups such as Accor and Louvre. But unlike in many countries, 83 percent of the French hotels between one and four stars (60 percent in Paris) are independent with less financial backing and profitability. They belong either to individuals or to special-purpose vehicles, set up for individual tax exemption schemes. Ninety-three percent of the bookings go through online tourism agencies ('OTAs') and this system is favorable for both large groups and independent hotels.

France Hospitality Market Trends

This section covers the major market trends shaping the France Hospitality Market according to our research experts:

Growing Occupancy Rate and RevPAR in Paris is Driving the Market

France Hospitality Industry Segmentation

The hospitality industry is a broad category of fields within the service industry that includes lodging, food and drink service, event planning, theme parks, travel, and tourism. It includes hotels, tourism agencies, restaurants, and bars. This market is segmented by Type (Chain Hotels and Independent Hotels) and by Segment (Budget and Economy Hotels, Mid and Upper Mid-scale Hotels, Luxury Hotels, and Service Apartments). The report offers market size and forecasts in value (USD billion) for all the above segments.