The Moscow hotel market led last year's European recovery, according to new figures from consultancy Deloitte.
Its Annual Profitability HotelBenchmark survey revealed profitability per available room in continental Europe increased 7% in 2004, reversing three years of decline.
On average hotels generated an additional €1,000 (£688) profit in 2004 to reach €15,000 (£10,312) per available room per annum.
During 2004 Moscow was top when it came to converting revenue into profit and out-performed the other 22 cites in the report, achieving an average €39,000 profit per available room (£26,829).
Eastern European markets were the region's star performers with many cites reporting double-digit revenue per available room growth, with Prague and Budapest doing particularly well.
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