The Caterer
Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

London hotels ahead of European rivals for profitability

12 May 2006

Low labour costs and strong occupancy figures enabled London hotels to top the table of the most profitable ten cities in Europe in the three months to March, according to a new report.

The HotStats survey of European chain hotels, carried out by Tri Hospitality Consulting, found London hotels had an income before fixed costs per available room (IBFCpar) of €80.99 (£55.57).

This figure was 60% higher than nearest rival Paris (with an IBFCpar of €50.99 or £34.98).

It was three times ahead of the least profitable city, Budapest, which had an IBFCpar of €22.27 or £15.28.

Although London recorded the highest revpar during the quarter of €130.18 (£89.30), this was just €8.81 (£6) above the €121.37 (£83.27) achieved in Paris

However, London hotels spent just 27.9% of their turnover on wages compared with 42.9% in Parisian hotels, which spent the third highest percentage of sales on salaries after Vienna and Brussels.

TRI monthly European figures >>

By Angela Frewin

Get your copy of Caterer and Hotelkeeper every week -

TagsTrends
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking