London's chain hotels generated the best room sales in July according to the latest HotStats survey of leading European cities by TRI Hospitality Consulting.
Revenue per available room rose by 1.7 per cent to Eu184.50 in London, the result of the highest rate and occupancy levels in Europe. Average room rate edged up 2.9 per cent to Eu206.36, and occupancy was 89.4 per cent, one point down on the same month in 2006.
"Demand in London continues to be extremely high, despite no evidence of summer and the unfavourable dollar to pound exchange rate. But for the first time in 14 months, London's hoteliers did not push rate so aggressively," said Jonathan Langston, managing director, TRI Hospitality Consulting.
Moscow continues to push rate skywards
The highest increase in revpar was found in Russia where Moscow's remarkable run of growth continued unabated with a 27 per cent rise taking revpar to Eu118.39.
Room rate was up by 19.9 per cent to Eu173.9, but an increase of 3.8 percentage points still put Moscow's occupancy at only 68.1 per cent, the lowest in the survey.
Lack of volume put Moscow's room sales in third place after London and Paris, which took second place with revpar increasing by 11.7 per cent to Eu164.64.
"Moscow's hoteliers continue to drive rate harder than any other city in our survey, but unless you also fill your hotels, the net result is not as beneficial as when a more balanced approach is taken. Paris and London have the sales edge due to superior volume, particularly in London where average occupancy is nearing 90 per cent," said Langston.
Germany experiences post-World Cup effect
Unfavourable comparison with 2006 when Germany hosted the World Cup showed in chain hotel performance in Berlin, Munich and Hamburg. The most significant falls were seen in Berlin where room rate was down 30.2 per cent to Eu117 and revpar fell by 30.4 per cent to Eu83.67.
"Germany presents clear evidence of the transformational effects of major sporting events. Yet it would be a mistake to judge Berlin's performance one year on too harshly. Compared to July 2005, revpar in Berlin increased by more than 100 per cent during the World Cup. With a fall of just 30.4 per cent this year, arguably Berlin's hoteliers have continued to up their game," said Langston.
London and Amsterdam have the fullest hotels in Europe
In the year to date there are only two destinations in Europe where average occupancy exceeded 80 per cent - London with 83.4 per cent and Amsterdam in second place with 82.2 per cent.
High volume has helped the Dutch capital move into fourth place in the year-to-date revpar ratings, with growth of 4.7 per cent to Eu134.79
Elsewhere, the long term trend continued to be negative in Budapest, Prague and Hamburg, with occupancy, rate and revpar all falling during July and the year-to-date.
Budapest had the lowest revpar in the survey, dropping by 4.8 per cent to Eu68.94 in the year to date. In July, a flat market and high local costs were exacerbated by a 12 per cent devaluation of the Hungarian Forint.
For more information contact Jonathan Langston at TRI Hospitality Consulting on +44 (0)20 7486 5191 or email firstname.lastname@example.org