The hotel market in France reached record revenue levels, with RevPAR now 7% higher than 2019 levels, driven by strong ADR growth (+14.3%)[9] , in particular for leisure assets. Looking at the difference between quality offerings: high-end hotels are performing very well supported by a strong and healthy customer subset (RevPAR +13.5% vs 2019), while budget hotels have struggled to pass on rising costs to their customers resulting in decreasing margins (RevPAR +3.5% vs 2019)[10]. The defensive qualities of well located, high-end leisure hotels make them an interesting proposition in an inflationary environment.

[9] Source: BNP Paribas

[10] Source: BNP Paribas