ExCeL London - 30 Sep - 01 Oct 2021
18 October 2021 - Virtual
28 October - London, UK
Paris suffers 31% decline in first quarter
European chain hotel incomes fell sharply in the first quarter of 2009, the latest HotStats survey by TRI Hospitality Consulting has revealed.
Vienna was the worst hit city with a 47.5% fall in income before fixed costs (IBFC). Prague and Amsterdam suffered 46.9% and 36.6% declines respectively.
IBFC in Paris fell 30.7%, while revPAR (revenue per available room) dropped 16%.
Room rates in the French capital were down 7.9%, second only to Amsterdam which suffered an 11.5% cut in rates.
Occupancy in London came top at 76% down 1.6% compared to the same period in 2008.
TRI said price promotions and the falling value of the pound had driven leisure travel to London, offsetting a fall in corporate bookings.
Rates in London came in fifth place at €140.40, with Paris, Amsterdam, Vienna and Berlin all charging customers more per night.
Only Hamburg reported a growth in occupancy and profit. IBFC was up by 3.6% to €31.23 per available room and occupancy rose to 64.2% from 62.2% in 2008.
TRI's deputy managing director David Bailey said Hamburg's HafenCity waterfront development had boosted travel to the city.
Germany's hotels have fared better than most in the economic downturn, benefiting from recent large trade shows and exhibitions.
The ability to control payroll costs had played a large part in Hamburg and London's "resilient performance," TRI said.
Payroll in Hamburg stood at 34.5% of total revenue up from 35.2% in 2008. London reduced its payroll margin to 27% from 27.7%, the lowest in the survey.
London was the most profitable hotel market in the first quarter at €68.52 per available room, well ahead of Paris in second place with €40.31.