Moscow – the most profitable hotel market in Europe

Chain hotels in Moscow were the most profitable in Europe in 2007, despite having the lowest occupancy, according to the full-year figures from TRI Hospitality Consulting’s European HotStats service.

Each room in the Moscow hotels in the sample generated, on average, Eu140.01 of profit per day during 2007. This was significantly more than the Eu117.77 per room in London, the second most profitable city in the survey.

However Moscow’s room sales performance only put it in fourth place with average daily revenue per available room of Eu137.86.

“Moscow makes by far the most money for hoteliers and yet, on sales alone, it appears to be doing worse than Paris, London and Amsterdam. Relying on room revpar figures alone means hoteliers, investors and developers would have only a partial – and distorted – picture of true performance,” said David Bailey, deputy managing director, TRI Hospitality Consulting.

The revpar figures are also misleading when it comes to the relative merits of Paris and London. Paris put in the best room sales performance in 2007 with average daily revpar of Eu174.88 compared to London in second place with Eu166.26. But profitability in Paris was lower, at Eu96.09 compared to the Eu117.77 achieved in London.