Moscow was the most profitable European city in which to run a hotel in October even though about 30% of its bedrooms remained empty, research has revealed.
The study of 10 cities by TRI Hospitality Consulting showed that Moscow's hotels recorded a 26.9% growth in revenue per available room (revpar), despite turning in the lowest occupancy at less than 70%.
But the performance was not strong enough to lift Moscow above Paris for 2006 so far. Hotels in the French capital have this year enjoyed the highest revpar and the highest average room rate, at €201.23 (£135.49), ahead of Moscow, where on average it cost €188.25 (£126.75) for a room.
In the same period London hotels achieved the highest occupancy levels (84.3%), were the second most profitable and had the third best room rate, at €183.46 (£123.52).
Jonathan Langston, managing director of TRI, said: "Moscow's relatively poor occupancy levels reflect the underdeveloped tourist industry in Russia. Hoteliers in cities like London and Paris are able to balance strong weekday demand from business with healthy tourist traffic at weekends."
The World Cup gave German cities the biggest boost to profitability during the first 10 months of the year, with Berlin (26.3%) and Hamburg (19.4%) showing the strongest growth on a year-on-year basis.
Separate research from consultancy PKF has revealed that London hotels increased revpar by 19.1% in October. This was the result of a rise in occupancy of 7.6% over 2005 as well as a hike in the average room rate of 10.7% to £125.79.
In the regions, hotels boosted revpar by 5.9% on the back of a 3.3% increase in average room rate and a rise in occupancy of 2.5%.
By Kerstin Kühn
E-mail your comments to Kerstin Kühn here.