Low labour costs have helped make London hotels the most profitable in Europe, according to the Hotels 2006 Europe survey by Tri Hospitality Consulting.
Its survey of deluxe and upscale hotels across 13 European cities found that five of the six most profitable hotel cities – based on income before fixed costs (IBFC) as a percentage of turnover – were all British destinations.
London led the way with a profitability ratio of 42.9%.
Parisian hotels achieved Europe’s highest revenue per available room of €156.43 (£108), followed by London at €127.83 (£88).
However, hotels in the French capital were saddled with the third highest labour costs in Europe. Payroll costs represented 42.9% of turnover compared with a European low of 27.2% in London.
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As a result, IBFC in Paris accounted for just 29.8% of total sales.
Brussels and Vienna were the least profitable hotel cities in the survey and both faced the highest staffing costs, which gobbled up 42.7% and 43.7% of sales respectively.
The figures are compiled each year by TRI Hospitality Consulting.
| AMSTERDAM | 2005 | 2004 | Movement |
| Occupancy | 78.5% | 75.8% | +2.8 points |
| Room rate | €144.65 | €140.06 | +3.3% |
| Revpar | €113.59 | €106.13 | +7% |
| F+B revpar | €37.07 | €34.25 | +8.3% |
| Trevpar | €159.35 | €148.77 | +7.1% |
| Payroll% | 31.7% | 32% | -0.3 points |
| IBFCpar | €63.63 | €55.19 | +15.3% |
| IBFC% | 39.9% | 37.1% | +2.8 points |
| BERLIN | 2005 | 2004 | Movement |
| Occupancy | 63.8% | 62.8% | +1 point |
| Room rate | €125.12 | €121.40 | +3.1% |
| Revpar | €79.85 | €76.26 | +4.7% |
| F+B revpar | €58.06 | €56.91 | +2% |
| Trevpar | €146.28 | €142.57 | +2.6% |
| Payroll% | 34% | 34.3% | -0.3points |
| IBFCpar | €36.84 | €35.55 | +3.6% |
| IBFC% | 25.2% | 24.9% | +0.2 points |
| BIRMINGHAM | 2005 | 2004 | Movement |
| Occupancy | 65.1% | 65% | +0.1 points |
| Room rate | €100.13 | €99.67 | +0.5% |
| Revpar | €65.18 | €64.82 | +0.5% |
| F+B revpar | €50.82 | €50.54 | +0.5% |
| Trevpar | €120.33 | €119.65 | +0.6% |
| Payroll% | 29.3% | 28.6% | +0.7 points |
| IBFCpar | €47.24 | €49.10 | -3.8% |
| IBFC% | 39.3% | 41% | -1.8 points |
| BRUSSELS | 2005 | 2004 | Movement |
| Occupancy | 66.4% | 62.7% | +3.7 points |
| Room rate | €108.15 | €108.62 | -0.4% |
| Revpar | €71.86 | €68.10 | +5.5 % |
| F+B revpar | €38.79 | €37.59 | +3.2% |
| Trevpar | €117.49 | €112.20 | +4.7% |
| Payroll% | 42.7% | 42.4% | +0.3 points |
| IBFCpar | €28.37 | €25.56 | +11% |
| IBFC% | 24.1% | 22.8% | +1.4 points |
| CARDIFF | 2005 | 2004 | Movement |
| Occupancy | 71.8% | 70.8% | +1 point |
| Room rate | €98.67 | €93 | +6.1% |
| Revpar | €70.83 | €65.87 | +7.5% |
| F+B revpar | €66.56 | €64.41 | +3.3% |
| Trevpar | €161.99 | €153.26 | +5.7% |
| Payroll% | 30.8% | 32.1% | -1.3 points |
| IBFCpar | €55.85 | €52.29 | +6.8% |
| IBFC% | 34.5% | 34.1% | +0.4points |
| EDINBURGH | 2005 | 2004 | Movement |
| Occupancy | 75% | 76.4% | -1.4 points |
| Room rate | €117.92 | €111.84 | +5.4% |
| Revpar | €88.45 | €85.45 | +3.5% |
| F+B revpar | €52.84 | €52.25 | +1.1% |
| Trevpar | €156.44 | €151.68 | +3.1% |
| Payroll% | 28.8% | 28.6% | +0.2 points |
| IBFCpar | €58 | €58.22 | -0.4% |
| IBFC% | 37.1% | 38.4% | -1.3 points |
| FRANKFURT | 2005 | 2004 | Movement |
| Occupancy | 62.2% | 63.3% | -1.2 points |
| Room rate | €110.54 | €106.24 | +4.1% |
| Revpar | €68.72 | €67.28 | +2.1% |
| F+B revpar | €35.85 | €32.83 | +9.2% |
| Trevpar | €109.28 | €104.94 | +4.1% |
| Payroll% | 35.6% | 32.7% | +2.9 points |
| IBFCpar | €32.32 | €30.87 | +4.7% |
| IBFC% | 29.6% | 29.4% | +0.2 points |
| GLASGOW | 2005 | 2004 | Movement |
| Occupancy | 72.2% | 71.5% | +0.7 points |
| Room rate | €87.27 | €84.65 | +3.1% |
| Revpar | €62.97 | €60.50 | +4.1% |
| F+B revpar | €54.02 | €52.45 | +3% |
| Trevpar | €120.85 | €117.30 | +3% |
| Payroll% | 30.1% | 29.7% | +0.4 points |
| IBFCpar | €40.99 | €40.78 | +0.5% |
| IBFC% | 33.9% | 34.8% | -0.8 points |
| HAMBURG | 2005 | 2004 | Movement |
| Occupancy | 73% | 73.2% | -0.1 points |
| Room rate | €90.87 | €92.06 | -1.3% |
| Revpar | €66.38 | €67.35 | -1.4 % |
| F+B revpar | €40.11 | €36.09 | +11.1% |
| Trevpar | €112.82 | €111. 04 | +1.6% |
| Payroll% | 30.7% | 31.2% | -0.5 points |
| IBFCpar | €35.25 | €32.45 | +8.6% |
| IBFC% | 31.2% | 29.2% | +2 points |
| LONDON | 2005 | 2004 | Movement |
| Occupancy | 77.3% | 78.4% | -1.1 points |
| Room rate | €165.43 | €157.93 | +4.7% |
| Revpar | €127.83 | €123.76 | +3.3% |
| F+B revpar | €59.32 | €58.06 | +2.2% |
| Trevpar | €196.86 | €192.25 | +2.4% |
| Payroll% | 27.2% | 27% | +0.2 points |
| IBFCpar | €84.48 | €82.86 | +2% |
| IBFC% | 42.9% | 43.1% | -0.2 points |
| MUNICH | 2005 | 2004 | Movement |
| Occupancy | 65.3% | 69.3% | -4 points |
| Room rate | €101.92 | €103.37 | -1.4% |
| Revpar | €66.57 | €71.64 | -7.1% |
| F+B revpar | €30.49 | €30.90 | -1.3% |
| Trevpar | €102.18 | €107.87 | -5.3% |
| Payroll% | 29% | 29.8% | -0.8 points |
| IBFCpar | €34.03 | €36.71 | -7.3% |
| IBFC% | 33.3% | 34% | -0.7 points |
| PARIS | 2005 | 2004 | Movement |
| Occupancy | 75.1% | 67.8% | +7.4 points |
| Room rate | €208.24 | €203.81 | +2.2% |
| Revpar | €156.43 | €138.12 | +13.3% |
| F+B revpar | €67.65 | €64.80 | +4.4% |
| Trevpar | €232.43 | €210.71 | +10.3% |
| Payroll% | 41.9% | 42.1% | -0.2 points |
| IBFCpar | €69.15 | €55.19 | +25.3% |
| IBFC% | 29.8% | 26.2% | +3.6 points |
| VIENNA | 2005 | 2004 | Movement |
| Occupancy | 72.2% | 72.9% | -0.7 points |
| Room rate | €127.80 | €124.39 | +2.7% |
| Revpar | €92.31 | €90.66 | +1.8% |
| F+B revpar | €61.46 | €60.29 | +1.9% |
| Trevpar | €163.79 | €160.92 | +1.8% |
| Payroll% | 43.7% | 42.6% | +1.1 points |
| IBFCpar | €40.12 | €34.86 | +15.1% |
| IBFC% | 24.5% | 21.7% | +2.8 points |
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
F+B revpar is the revenue from food and beverage divided by the number of available rooms
Trevpar is the sum total of net revenues from all the operated departments plus rentals and other income per available room
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
IBFC% is the Income Before Fixed Charges as a percentage of total revenue
