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March finished on a optimistic note as overall performances were satisfactory.

Occupancy in the 2 to 4 star sector grew, whilst the budget sector continued to take advantage of higher average room rates (ARR).

Yet, although the arrival of spring brought a ray of sunshine to French hotels, the sky was not completely cloudless…

The economic crisis is not over yet and it remains to be seen whether the sunny spell will continue in the months to come.

France

HOTEL INDUSTRY PERFORMANCES MARCH 2010

Definitions :

OR = Occupancy Rate ADR = Average Daily Rate RevPAR = Revenue per available room

Beginning of recovery or just a short sunny spell for the French hotel industry?

Three and four-star hotels recorded a distinct rise in rooms revenues during March, primarily due to growth in occupancy, and on more rare occasions, rate increases. The recovery in business was significant in the 4-star Parisian segment, with occupancy rising by +11% and by +24%, even, in the more luxurious establishments. Not to be outdone, major French towns, including Bordeaux, Lyon, Montpelier, Nice and Toulouse, also recorded significant growth.

The return of improved occupancy rates was even more visible on the 3-star market and it was a rare agglomeration that recorded a drop in activity. However, on several occasions, higher occupancy was achieved at the expense of average rates: nevertheless, the drop in average rates did remain limited given the current economic conditions that are not particularly favourable to hoteliers – a context which incites consumers to negotiate rates and increasingly turn to Internet distribution sites.

One notable exception to the higher occupancy trend was Cannes! March saw hopes being dashed as occupancy dropped for all categories. A reflection of the difficult economic context, particularly in the real estate market, MIPIM attracted fewer participants than in previous years. Consequently, occupancy was greatly affected, with rates dropping by -5% in 3-star hotels and by -14% in upscale hotels.

The pattern was much more uneven in the 2-star segment. On average, occupancy seemed to have pulled up rooms revenue (RevPAR), but on a case-by-case basis, the situation appeared more complicated: a number of towns, including Amiens, Grenoble, Lille, Montpellier, Nice, etc., backed up RevPAR with higher occupancy. Others, however, relied on the more traditional lever of average rates to increase RevPAR.

The latter scenario was definitely the case in the budget sector. Budget hotels continued to record growth in ARR – growth that was the by-product of the renovation of a number of hotels, admittedly. That said, occupancy increased, too: budget hotels in Bordeaux, Metz, Montpellier, Nancy and Nantes recorded a significant rise in occupancy, compared with March 2009.

The start of spring has heralded a significant improvement in market conditions. But, is this a one-off or part of a gradual return to normality? It is rather difficult to say at this stage, particularly when the European economy is still fragile and the hotel market remains confronted with challenges that are difficult to grasp. As a certain volcano with an unpronounceable name so clearly reminds us...

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FOR FURTHER INFORMATION, PLEASE CONTACT FLORENT DANIEL (+33 (0)1 58 37 90 61 OR fdaniel@deloitte.fr) Deloitte - 185, avenue Charles-de-Gaulle - 92524 Neuilly-sur-Seine Cedex France

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PERFORMANCES – PARIS MARCH 2010

Paris-City

Paris suburbs (excluding Paris)

France

* Excluding La Défense and Roissy

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Tel : +33 (0)1 58 37 90 37 Fax : +33 (0)1 55 61 59 16 ©2010 Deloitte Conseil

PERFORMANCES – REGIONS MARCH 2010

Regions

France R

EG

ION

S (

EX

CL.

FR

EN

CH

RIV

IER

A)

RE

GIO

NS (

EX

CL.

FR

EN

CH

RIV

IER

A)

FR

EN

CH

RIV

IER

A

FR

EN

CH

RIV

IER

A

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FOR FURTHER INFORMATION, PLEASE CONTACT FLORENT DANIEL (+33 (0)1 58 37 90 61 OR fdaniel@deloitte.fr) Deloitte - 185, avenue Charles-de-Gaulle - 92524 Neuilly-sur-Seine Cedex France

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PERFORMANCES – SUBURBS MARCH 2010

Paris suburbs (excluding Paris)

3 S

TAR

MA

RK

ET

3

STA

R M

AR

KE

T

2 S

TAR

MA

RK

ET

2

STA

R M

AR

KE

T

France

Departments in Paris suburbs :

77 : Seine et Marne; 78 : Yvelines; 91 : Essonne; 92 : Hauts-de-Seine; 93 : Seine St-Denis; 94 : Val de Marne; 95 : Val d’Oise

0/1

STA

R M

AR

KE

T

0/1

STA

R M

AR

KE

T

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FOR FURTHER INFORMATION, PLEASE CONTACT FLORENT DANIEL (+33 (0)1 58 37 90 61 OR fdaniel@deloitte.fr) Deloitte - 185, avenue Charles-de-Gaulle - 92524 Neuilly-sur-Seine Cedex France

Tel : +33 (0)1 58 37 90 37 Fax : +33 (0)1 55 61 59 16 ©2010 Deloitte Conseil

PERFORMANCES – NORTH-EAST MARCH 2010

North-East & Cities

France

Departments in the North-Eastern set :

Aisne; Allier; Ardennes; Aube; Cher; Côte-d'Or; Doubs; Jura; Loiret; Marne; Haute-Marne; Meurthe-et-Moselle; Meuse; Moselle; Nièvre; Nord; Oise; Pas-de-Calais; Bas-Rhin; Haut-Rhin; Haute-Saône; Saône-et-Loire; Vosges; Yonne; Territoire-de-Belfort

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PERFORMANCES – NORTH-WEST MARCH 2010

North-West & Cities

France

Departments in the North-Western set :

Calvados; Côtes; Eure; Eure-et-Loir; Finistère; Ille-et-Vilaine; Indre; Indre-et-Loire; Loir-et-Cher; Loire-Atlantique; Maine-et-Loire; Manche; Mayenne; Morbihan; Orne; Sarthe; Seine-Maritime; Deux-Sèvres; Somme; Vendée; Vienne

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FOR FURTHER INFORMATION, PLEASE CONTACT FLORENT DANIEL (+33 (0)1 58 37 90 61 OR fdaniel@deloitte.fr) Deloitte - 185, avenue Charles-de-Gaulle - 92524 Neuilly-sur-Seine Cedex France

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PERFORMANCES – SOUTH-EAST (EXCL. FRENCH RIVIERA) MARCH 2010

South-East (excl. French Riviera) & Cities

France

Departments in the South-Eastern set ::

Ain; Alpes; Hautes-Alpes; Alpes-Maritimes; Ardèche; Aude; Aveyron; Bouches-du-Rhône; Cantal; Drôme; Gard; Hérault; Isère; Loire; Haute-Loire; Lozère; Puy-de-Dôme; Pyrénées-Orientales; Rhône; Savoie; Savoie; Haute-Savoie; Var; Vaucluse

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FOR FURTHER INFORMATION, PLEASE CONTACT FLORENT DANIEL (+33 (0)1 58 37 90 61 OR fdaniel@deloitte.fr) Deloitte - 185, avenue Charles-de-Gaulle - 92524 Neuilly-sur-Seine Cedex France

Tel : +33 (0)1 58 37 90 37 Fax : +33 (0)1 55 61 59 16 ©2010 Deloitte Conseil

PERFORMANCES – FRENCH RIVIERA MARCH 2010

French Riviera

France C

AN

NE

S

CA

NN

ES

NIC

E

NIC

E

MO

NA

CO

* M

ON

AC

O*

* Monaco set includes include the following cities: Monaco, Roquebrune and Cap d’Ail

French Riviera Cities

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Tel : +33 (0)1 58 37 90 37 Fax : +33 (0)1 55 61 59 16 ©2010 Deloitte Conseil

PERFORMANCES – SOUTH-WEST MARCH 2010

South-West & Cities

France

Departments in the South-Western set :

Ariège; Charente; Charente-Maritime; Corrèze; Creuse; Dordogne; Haute-Garonne; Gers; Gironde; Landes; Lot; Lot-et-Garonne; Pyrénées-Atlantiques; Hautes-Pyrénées; Tarn; Tarn-et-Garonne; Haute-Vienne

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Tel : +33 (0)1 58 37 90 37 Fax : +33 (0)1 55 61 59 16 ©2010 Deloitte Conseil

PERFORMANCES – MAIN CITIES IN REGIONS MARCH 2010

Main cities in Regions – 4* and 3*

France

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PERFORMANCES – MAIN CITIES IN REGIONS MARCH 2010

Main cities in Regions – 2* and 0/1*

France

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FOR FURTHER INFORMATION, PLEASE CONTACT FLORENT DANIEL (+33 (0)1 58 37 90 61 OR fdaniel@deloitte.fr) Deloitte - 185, avenue Charles-de-Gaulle - 92524 Neuilly-sur-Seine Cedex France

Tel : +33 (0)1 58 37 90 37 Fax : +33 (0)1 55 61 59 16 ©2010 Deloitte Conseil

INFORMATIONS

France

Definitions

• Occupancy Rate (OR) : Rooms sold divided by rooms available multiplied by 100.

• Rooms Available : The number of rooms times the number of days in the period. • Average Daily Rate (ADR) : Room revenue divided by rooms sold.

• Revenue per Available Room (RevPAR) : Room revenue divided by rooms available.

ADR and RevPAR are expressed in Euros, excluding VAT

Deloitte

About Deloitte in France Deloitte & Associés is the Deloitte Touche Tohmatsu member firm in France and the professional services are delivered by Deloitte & Associés, its subsidiaries and affiliates. Deloitte calls on diversified expertise to cover the scope of services required by its clients of all sizes from all sectors - major multinationals, local micro-companies and medium-sized enterprises. Our 6,000 professionals and partners embody the vigor and success of the Firm in their commitment to clients and their constant concern for service excellence. Deloitte offers a very comprehensive range of services: audit, consulting and risk services, tax and legal, accounting and corporate finance, in accordance with its multidisciplinary strategy and ethical approach. For more information, visit www.deloitte.fr

Tourism, Hospitality & Leisure Desk Deloitte is one of the leading advisors in Tourism, Hospitality and leisure industries worldwide. We provide many consulting services for different stakeholders of the tourism industry.

• Detailed market study

• Operational recommendations to respond to the requirements of potential clients

• Determination of the product-service concept

• Determination of client target the price positioning

• Revenue estimations (accommodation, food and beverage, other…)

• Operating forecasts over several years : establishment of expense items to determine the project’s profitability (GOP, cash-flows

MARKET AND FEASIBILITY STUDIES

VALUATION OF HOTEL AND TOURIST ASSETS

URBAN TOURISM DEVELOPMENT PLANS

HUMAN CAPITAL OTHERS SERVICES

• A detailed market study

• Product analysis (strengths, weaknesses, necessary renovations and refurbishments

• Forecasts over several years

• The application of the discounted cash-flow method, completed by market references (recent and comparable transactions) and the use of the others methods, specially adapted to each case (multiple of turnover or GOP, approaches linked to the real estate market, etc).

• Dynamic review of existing supply

• Analysis of the impact of development factors (economy, transportation, tourist markets, etc.)

• Analysis of supply/demand situation

• Assessment of development ambitions and objectives

• Recommendations on strategy

• Aligning Human Resources with the strategic goals of the company

• Mastering operational risks in terms of HR and abiding by the regulations

• Incorporating the human dimension in all your reorganization and transformation processes

• Developing an attractive and incentive remuneration policy

• Hotel benchmark survey

• Identification of operators and investors

• Optimize your information systems

• Marketing audits

• Quality control

• Organizational audits and management support

• Etc.