Hotel profitability declined across nine of the 10 European cities monitored in the Europe HotStats survey in August 2009, following more robust signs of recovery in July.
Berlin alone increased gross operating profit per available room (GOPpar), which rose by 17.9%. Eight cities experienced double-digit falls, ranging from 10.7% in London to 51% in Munich.
Nevertheless, London remained the most profitable city for hotels with a GOPpar of €63.11, followed by Amsterdam's €45.06.
London's success stemmed from an occupancy of 83.8% (the highest recorded for the month) and an average room rate of €136.41, which was bettered only by Paris and Amsterdam.
"In terms of recovery, July was clearly a more positive month than August for European hotel markets and whilst we remain optimistic that the worst of the declines have already occurred, recovery will be gradual," said David Bailey, deputy managing director at TRI.
All hotel markets have seen double-digit drops in profitability in the eight months to August bar London, which was able to limit falls through surprisingly buoyant performance levels and a tight control over costs.
The figures are compiled each month by Tri Hospitality Consulting.
Annual HotStats hotel performance data
|Payroll %||37.6%||36.8%||+0.8 points|
|Payroll %||36.7%||39.3%||-2.7 points|
|Payroll %||29.9%||29.4%||+0.5 points|
|Payroll %||38.5%||33.7%||+4.8 points|
|Room rate||€ 136.41||€148.12||-7.9%|
|Payroll %||27.9%||27.9%||-0.1 points|
|Payroll %||37.6%||31.6%||+6 points|
|Payroll %||48.2%||43.2%||+5 points|
|Payroll %||31.8%||29.4%||+2.4 points|
|Payroll %||46.6%||47.2%||-0.6 points|
|Payroll %||34.5%||36.1%||-1.6 points|
View the figures for July 2009 >>
View the figures for June 2009 >>
View the figures for May 2009 >>
View the figures for April 2009 >>
View the figures for March 2009 >>
View the figures for February 2009 >>
View the figures for January 2009 >>
View the figures for December 2008 >> View the figures for December 2007 >>
View the figures for December 2006 >> View the figures for December 2005 >>
Definition of terms
Occupancy is that proportion of the bedrooms available during the period which are occupied during the period.
Room rate is the total bedroom revenue for the period divided by the total bedrooms occupied during the period.
Revpar is the total bedroom revenue for the period divided by the total available rooms during the period
Payroll % is the payroll for all hotels in the sample as a percentage of total revenue
IBFCpar is the Income Before Fixed Charges shown per available room