The biennial Farnborough Airshow in July made London the most profitable of the 10 European cities listed in the monthly Europe HotStats survey.
The UK capital increased income before fixed charges per available room (IBFCpar) by 24.8% to €129.76 thanks to a 17.5% boost to average room rate.
Budapest showed the biggest growth in profitability, which rose by 92.7%. This was largely due to an 8.3% fall in payroll costs and a 9.1% rise in room rate. However, the city remained the second least profitable in the survey.
Hamburg and Munich were the other big achievers in profit growth, increasing IBFCpar by 52.7% and 40.9% respectively.
The German cities were the only two in the survey to increase occupancy during July and Munich achieved the highest hike in room rate, which grew by 20.2% to help put it third in the profitability stakes.
July is a full business month in Munich (unlike the rest of Germany) as the Bavarian school holiday starts in August. An opera festival and strong leisure demand from the Middle East helped keep business buoyant.
The figures are compiled each month by Tri Hospitality Consulting.
Annual HotStats hotel performance data
|Payroll %||33.6%||30.5%||+3.1 points|
|Payroll %||37.6%||38.6%||-1 point|
|Payroll %||32.2%||40.4%||-8.3 points|
|Payroll %||30.3%||34.2%||-3.9 points|
|Payroll %||22.1%||24.5%||-2.5 points|
|Payroll %||28%||31.6%||-3.6 points|
|Payroll %||38.7%||38%||+0.6 points|
|Payroll %||28.9%||25%||+4 points|
|Payroll %||42.7%||43.1%||-0.4 points|
|Payroll %||30.7%||28.7%||+2 points|
View the figures for June 2008 here >> View the figures for May 2008 here >> View the figures for April 2008 here >> View the figures for March 2008 here >> View the figures for February 2008 >>
View the figures for January 2008 >>
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