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.
By Angela Frewin