Deserted, hotels remain in very great difficulty

The entrance halls are hopelessly empty. As are the reception and catering rooms. Despite the resumption of economic activity in the majority of business sectors, the hotel industry is still largely at a standstill, notably due to the lack of foreign customers and professional seminars. In its last point, the Banque de France specifies that the accommodation activity only picked up at 25% in June, and that it will only turn at 40% in July. Very far from other service activities, which will reach on average more than 80% of their usual activity in July. Worried, hotel professionals believe that a third of establishments will not pass this crisis, and continue to demand partial payment of rents.

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" In Paris, half of the hotels are still closed, you just have to walk around the city to see it ," explains Franck Trouet, director of institutional relations for the National Group of Self-Employed Hotels & Restaurants (GNI). In detail, 80% of establishments which belong to chains or which are franchised have reopened in Paris, but more than half of the self-employed remain closed. Most say they will open in September, certainly not before. ”

If from June to September we work little, I don't know if we will survive

In the South, the picture is no more encouraging, despite the impending summer vacation: " Small hotels are not doing well, and large ones are closing entire floors to reopen, explains Jean-François Richomme, the president of the 3A Hôtels collection group on the French Riviera. Until the airports open, we are stuck. Usually we make our annual turnover in four months, so if from June to September we work little, I don't know if we will survive. "

" Cannibalized " margins

Several reasons explain why hotels remain on the margins of economic recovery. One of them is surprising: there are simply too many hotels in France. “We have 650,000 rooms in 1 to 3 stars in France. This figure is oversized, so if you only lose 20% of tourists, these hotels are in loss, ” explains Olivier Duc, president of the hotel industry of the UMIH (Union of hotel trades and industries). Thus with margins already very reduced before the crisis, hotels cannot afford to reopen for only 40% or 60% of their customers. "Our margins have been cannibalized for years by the commissions taken by sites like Booking or Expedia," continues Jean-François Richomme. "These websites take 15 to 20% of the price of each room and do not pay their taxes in France, it is a scandal which handicaps us even more at the moment " abounds, furious, Laurent Duc.

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Another reason for the desertion of hotels: the late reopening of borders with European countries on June 15 has not yet borne fruit, especially since connections with non-European countries are still closed. "Some tourists return to the countryside, to campsites or to the south of France, but not yet in Paris" , continues Frank Trouée.

Finally, it is “ business ” tourism , that of trade fairs, seminars and meetings which is seriously lacking. "The ban on fairs and shows is a huge blow, because professional tourism represents 60% of our activity " continues Laurent Duc. The generalization of teleworking and videoconferencing could well perpetuate this phenomenon.

Amendment rejected

To deal with this unprecedented crisis, hotel professionals have made massive use of the measures put in place by the government, notably the cancellation of charges and short-time working. But today they are asking a gesture from their lessors and the State regarding rents. "We have tabled an amendment to the third amending finance law to ask the State to take charge of one month's rent for hotels, and to donors for another month," explains the related deputy LREM Pascale Fontenel-Personne. It was rejected immediately and without justification in committee, but we will table this amendment again in September, during the fourth version of the amending bill, hoping to be heard after this summer season which promises to be catastrophic. ”

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Without paying the rent, Laurent Duc estimates that 30% of establishments will close their doors this year: 15% who had planned to close before the crisis and will not be replaced, and 15% more, weakened by the coronavirus crisis. "The government responded well to the emergency at the height of the crisis, but it is not following up," concludes Laurent Duc. We have the impression that there has been a bubble for four months of crisis and that everything is going to restart, but this is obviously false, it will take much longer.