Hotel's revenue and profit continues to fall

3rd March 2009, 8:00am

The trend of falling occupancy, revenue and profit across key European hotel markets continued during January, according to the latest HotStats survey by TRI Hospitality Consulting.

Occupancy was down 3.3 percentage points to 70% in London and in Paris down by 3.5 points to 69.3%. Profit fell back by 20.6% in Paris and 21.5% in London.

Average room rate dropped by 8.4% in the UK capital compared to -3.7% in Paris, although Paris had the highest average room rate and the best room revenue performance, making it number one for profit with daily IBFC of €55.13 per available room.

Meanwhile in Vienna the sample of international branded hotels saw daily profit – expressed as income before fixed charges (IBFC) – decline by nearly two thirds to just €9.80 per available room. In Prague profit more than halved and in Amsterdam the decline was 45.2%. The only city in the survey not to report a double-digit decline in profit was Hamburg.

Jonathan Langston, managing director, commented on the results: "The fixed payroll component tends to take up a greater percentage of total revenue at the start of the year when sales are generally at their weakest. This January's year-on-year falls in revenue have heightened this trend further, particularly in Austria which has strong labour laws and a high standard of living."

Related Articles:

• 11 Nov 2009 - Confidence amongst UK hotel general managers at a high
• 02 Nov 2009 - London hoteliers lead the way
• 30 Oct 2009 - The latest issue of London Hotel Development Monitor now available
• 28 Oct 2009 - London hoteliers boost profits
• 01 Oct 2009 - European hotels experience a weak August
• 28 Sep 2009 - Holiday makers boost occupancy levels for UK hotels
• 26 Aug 2009 - London Hotel occupancy exceeds 2008 levels
• 18 Aug 2009 - UK hotel general managers remain positive
• 28 Jul 2009 - Occupancy levels hold up at London hotels
• 25 Jun 2009 - Recession has less impact on UK hotels
• 22 May 2009 - London occupancy stays above 80%
• 28 Apr 2009 - Lower hotel room rates keep occupancy high
• 27 Apr 2009 - UK hotel managers are more optimistic
• 24 Apr 2009 - UK hotels experience heavy falls in profit
• 30 Mar 2009 - Mixed performance across key city hotel markets
• 25 Mar 2009 - Profit down by 17% at London hotels
• 25 Feb 2009 - Hotel profits fall by almost one third
• 23 Feb 2009 - TRI Hospitality Consulting wins hotel report award
• 09 Feb 2009 - UK hotels face most challenging conditions in 17 years
• 28 Jan 2009 - 64% of hotel managers concerned for 2009
• 28 Jan 2009 - Flat profit at London hotels

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