The revenue per available room (revPAR) rose sharply in Paris, London and Amsterdam as hotels in the cities continued to boom.
In Paris the revPAR rose by 15.7% to 163.75, in London by 9.9% to 160.431 while in Amsterdam it increased by 11.2% to 127.39, according to the latest TRI Hospitality Consulting European HotStats survey.
The Czech capital Prague enjoyed the highest occupancy with 90.5% but despite this, its average room rate fell by 6.2% to 93.14 and its revPAR dropped by 1.9% to 84.26.
TRI said there was “impressive growth” in Moscow and Vienna. In the Russian capital, room rates rose by 20.3% to 171.58 but occupancy only grew by 1.1% to 63.8%.
Vienna had an 18.9% rise in room rates 136.29 and a rise in revPAR of 17.5% to 114.46.
But TRI said the "surprise success story" of the month was Berlin where revPAR rose by 22.3% to 87.75, thanks to solid rises in both rates and occupancy.
David Bailey, director of TRI, said: "Often criticised for its oversupply and low average rates, Berlin now looks set to overtake Munich as Germany's most dynamic hotel market.
"Indeed it would be a superlative achievement for Berlin if 2007 beats its World Cup-fuelled performance in 2006."
The London hotel market could be approaching “uncertain times”, PricewaterhouseCoopers predicted in its latest Hospitality Directions Europe - UK Hotel Forecast.
London hotesl will continue their "stellar performance," PWC said.
But Robert Milburn, PWC's UK hospitality and leisure sector leader, warned: “We should see another two years of good performance for the UK hotel sector but it will be highly dependent on London's performance and, as we know, the storm clouds may well be gathering on the back of the credit crunch currently occupying the headlines.
"One area that looks set for continued growth, though, is the luxury hotel market.
"With room rate growth of 17.4 %, an increasing number of high net worth individuals and a more affluent mass consumer market, it is no surprise that major luxury hotel chains are jostling for position in the capital."
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