The Caterer

London hotels top European profits league

09 December 2005
London hotels top European profits league

London hotels are the most profitable in Europe, according to a new survey by TRI Hospitality Consulting.

The company looked at 10 major European cities and found London topped the income table, achieving an average income of £80.67 per avilable room, before fixed charges. The measure deducts costs such as payroll and utiltiy costs from revenue.

Paris achieved revenue per available room (revpar) of £135.35 in the first ten months of the year, compared with £128.56 in London. But payroll costs in Paris were far higher - at 40.1% of revenue against London's 27.6%.

These high wage costs brought income before fixed charges per avilable room at Parisan hotels down to £67.08.

Hotels in Brussels were the least profitable, with an income of just £28.91. Although they achieved higher revpar than hotels in Munich and Berlin, Brussels hotels were also saddled with the highest payroll costs, which accounted for 42% of turnover.

by Angela Frewin

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