29. Juli 2010 
Print
Print
London hits 90 with Paris close behind but payroll dents French profitability
Hotels in London have recorded a rarely achieved room occupancy of 90% during June driving a year-on-year profitability increase of 16% for that month, according to the latest HotStats survey from TRI Hospitality Consulting.
The extremely high room occupancy levels in addition to a 12.8% increase in achieved average room rate to €188.16 resulted in a year-on-year growth in Revenue per Available Room (RevPAR) of 16% to €169.28.
June is traditionally a strong month for hotels in London which is led by an uplift in price and volume thanks to Wimbledon and complemented by commercial and leisure demand. Leisure demand remains strong supported by a 14.4% increase in retail sales by visitors from Western Europe, China and the Middle East (Source: British Retail Consortium).
In contrast, despite a six percentage point increase in room occupancy in Paris which resulted in an achieved room occupancy of 88.8%, average room rate declined by 7.2% to €201.86, which left the French capital 0.4% behind the same period in 2009.
Volume in the city was helped at the beginning of the month by demand from the French Open; however, commercial rates in the city remain a challenge, primarily in the corporate (-4.1%) and conference (-47.8%) sectors. Despite this, Paris finished the month at a higher RevPAR than London.
The RevPAR in Paris was approximately six per cent above London but a difference in payroll of 13.1 percentage points between the two cities left the French capital roughly 19% below the British capital in profitability terms at €105.21 and €125.27 respectively. Following a 1.8% decline, London has the leanest payroll levels of all hotel markets in our sample at 20.7% of total revenue against 33.8% in Paris, up by 2.5 percentage points.
The extremely high room occupancy levels in addition to a 12.8% increase in achieved average room rate to €188.16 resulted in a year-on-year growth in Revenue per Available Room (RevPAR) of 16% to €169.28.
June is traditionally a strong month for hotels in London which is led by an uplift in price and volume thanks to Wimbledon and complemented by commercial and leisure demand. Leisure demand remains strong supported by a 14.4% increase in retail sales by visitors from Western Europe, China and the Middle East (Source: British Retail Consortium).
In contrast, despite a six percentage point increase in room occupancy in Paris which resulted in an achieved room occupancy of 88.8%, average room rate declined by 7.2% to €201.86, which left the French capital 0.4% behind the same period in 2009.
Volume in the city was helped at the beginning of the month by demand from the French Open; however, commercial rates in the city remain a challenge, primarily in the corporate (-4.1%) and conference (-47.8%) sectors. Despite this, Paris finished the month at a higher RevPAR than London.
The RevPAR in Paris was approximately six per cent above London but a difference in payroll of 13.1 percentage points between the two cities left the French capital roughly 19% below the British capital in profitability terms at €105.21 and €125.27 respectively. Following a 1.8% decline, London has the leanest payroll levels of all hotel markets in our sample at 20.7% of total revenue against 33.8% in Paris, up by 2.5 percentage points.
