Low room rates are keeping occupancy levels high in London hotels, which proved the most profitable among the 10 European cities monitored in the monthly Europe HotStats survey during March 2009.
London topped the table for occupancy, at 80.5% but clocked in just fifth for average room rate, which fell by 3.4% to €143.43.
However, occupancy combined with the lowest payroll costs in the survey to put London hotels first in terms of revenue per available room and profitability.
Its income before fixed charges per available room rose by 5.2% to €84.85, with Amsterdam in second place despite its €57.01 being 25.2% lower than in March 2008.
“Price promotions and the low value of sterling are stimulating leisure tourism to London which is providing some compensation for the fall in corporate bookings. The overall damage to hotel profits is less pronounced in the English capital that in most other European cities,” said David Bailey, deputy managing director at TRI.
Prague, on the other hand, was the only city to boost room rate but suffered the steepest declines in occupancy and profitability, of 16.1% and 21.9% respectively.
Apart from London, only Hamburg and Warsaw improved their year-on-year profitability during March.
The figures are compiled each month by Tri Hospitality Consulting.
Annual HotStats hotel performance data
TRI Hotels 2007 UK >>
TRI HotStats: annual UK hotel figures >>
TRI HotStats: Hotels 2007 Europe >>
MARCH 2009
| Amsterdam | 2009 | 2008 | Movement |
| Occupancy | 67.2% | 73.9% | -6.7 points |
| Room rate | €160.44 | €183.06 | -12.4% |
| Revpar | €107.87 | €135.27 | -20.3% |
| Payroll % | 35.1% | 31.7% | +3.4 points |
| IBFCpar | €57.01 | €76.25 | -25.2% |
| Berlin | 2009 | 2008 | Movement |
| Occupancy | 59.3% | 59.7% | -0.4 points |
| Room rate | €152.39 | €159.84 | -4.7% |
| Revpar | €90.37 | €95.40 | -5.3% |
| Payroll % | 32.7% | 34.2% | -1.5 points |
| IBFCpar | €47.77 | €48.57 | -1.6% |
| Brussels | 2009 | 2008 | Movement |
| Occupancy | 66.1% | 71% | -5 points |
| Room rate | €140.34 | €142.27 | -1.4% |
| Revpar | €92.71 | €101.05 | -8.3% |
| Payroll % | 33.9% | 35.5% | -1.6 points |
| IBFCpar | €49.16 | €53.87 | -8.7% |
| Hamburg | 2009 | 2008 | Movement |
| Occupancy | 70.1% | 66.4% | +3.8 points |
| Room rate | €115.66 | €119.69 | -3.4% |
| Revpar | €81.12 | €79.44 | +2.1% |
| Payroll % | 31.6% | 33.7% | -2.1 points |
| IBFCpar | €41.44 | €35.98 | +15.2% |
| London | 2009 | 2008 | Movement |
| Occupancy | 80.5% | 80.2% | +0.2 points |
| Room rate | €143.43 | €148.45 | -3.4% |
| Revpar | €115.40 | €119.07 | -3.1% |
| Payroll % | 23.9% | 27% | -3.1 points |
| IBFCpar | €84.85 | €80.62 | +5.2% |
| Munich | 2009 | 2008 | Movement |
| Occupancy | 63% | 63.1% | 0 points |
| Room rate | €103.76 | €109 | -4.8% |
| Revpar | €65.40 | €68.74 | -4.9% |
| Payroll % | 38.1% | 38.6% | -0.4 points |
| IBFCpar | €24.46 | €25.21 | -3% |
| Paris | 2009 | 2008 | Movement |
| Occupancy | 72.9% | 80.3% | -7.4 points |
| Room rate | €154.99 | €170.01 | -8.8% |
| Revpar | €112.95 | €136.54 | -17.3% |
| Payroll % | 41% | 40.7% | +0.3 points |
| IBFCpar | €55.27 | €68.35 | -19.1% |
| Prague | 2009 | 2008 | Movement |
| Occupancy | 48.4% | 64.5% | -16.1 points |
| Room rate | €118.50 | €113.85 | +4.1% |
| Revpar | €57.30 | €73.39 | -21.9% |
| Payroll % | 29.8% | 28.7% | +1.1 points |
| IBFCpar | €30.74 | €42.56 | -27.8% |
| Vienna | 2009 | 2008 | Movement |
| Occupancy | 60.5% | 65.7% | -5.2 points |
| Room rate | €157.41 | €162.63 | -3.2% |
| Revpar | €95.24 | €106.89 | -10.9% |
| Payroll % | 45.3% | 43.7% | +1.5 points |
| IBFCpar | €34.13 | €42.33 | -19.4% |
| Warsaw | 2009 | 2008 | Movement |
| Occupancy | 67.3% | 65.2% | +2.1 points |
| Room rate | €88.97 | €89.77 | -0.9% |
| Revpar | €59.90 | €58.52 | +2.4% |
| Payroll % | 24.5% | 27% | -2.5 points |
| IBFCpar | €42.94 | €38.48 | +11.6% |
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