London hotels had an impressive start to 2007, with the top occupancy, room rates and room revenue per available room (revpar) in Europe, according to market analyst TRI Consulting.
The monthly Hotstats report on the top 10 European cities in January showed the UK capital was €10 ahead of its nearest rival Paris with revpar at €144.10 (£98.90) compared with €132.45 (£90.90).
“London is continuing the strong showing it made in 2006 into 2007,” said TRI Director David Bailey. “The main threat to London’s pole position remains Moscow, which saw higher rate growth of 27.3% compared with London’s 19%.”
The Russian capital also had the lowest cost of labour, with Moscow payroll just 24% of turnover in January, while London, the only other city below 30%, came in at 28.7%. Budapest had the worst start to the year, after a surprise drop in occupancy left the city with a huge rise in labour costs, up ten percentage points to 44.4%.