At the half-year point, European chain hotels appear to be having a buoyant time according to the latest numbers from TRI Hospitality Consulting for the first six months of this year.
Most cities are enjoying double digit increases in profitability as strong revpar numbers deliver to the bottom line despite some cost pressures.
The strongest increases in profitability have come in Germany thanks to the effect of the soccer World Cup. Berlin’s operating profit per room in TRI’s HotStats sample of hotels doubled, with healthy increases in both Hamburg and Munich as well.
But it is further East in Moscow where the most money is being made thanks to astonishingly high room rates and low labour costs. In the Russian capital payroll is just 22% of turnover, almost half that of the most expensive city in the sample Vienna, at 42.8%.
The high labour cost in Paris, 40% of turnover, drags that city lower in the profitability rankings despite it having the best revpar performance.