London hotels have top RevPAR in Europe and Middle East in 06

Londons hotel revenue per available room, or RevPAR, was the highest among European and Middle East cities last year, according to a report by KPMG, a London-based hospitality research company.

In 2006, London achieved a RevPAR of $215.28 (based on a euro-to-dollar conversion rate on Jan. 17), up 19.7% from 2005. Moscow ranked second with a RevPAR of $209.03, an increase of 15% from 2005.

In third place was Dubai with a RevPAR of $201.98, followed by Paris at $196.82.

The cities that rounded out the top 10 in Europe and the Middle East were Amsterdam; Edinburgh, Scotland; Bath, England; Dublin; Berlin; and Vienna.

All of the cities in the top 10 in RevPAR posted an average hotel occupancy of 70% or more during 2006.

KPMG also noted that, aside from London, RevPAR was up for most cities in the U.K., including English cities Newcastle, York, Manchester, Bristol, Birmingham, Southampton and Liverpool; Belfast, Northern Ireland; Cardiff, Wales; and Aberdeen, Scotland.

According to KPMG, Europes RevPAR was up 11.6% on average, compared with a 7.5% rise in the U.S. But Europe lagged behind the Asia-Pacific region, which registered a 20.1% increase.

James Chappell, managing director of The Bench, a provider of hotel market information, called the U.S. result very respectable but added that the outright winner was Asia, something we are going to have to get used to.

In the U.K., Chappell said that a combination of great market conditions and great revenue management resulted in a 12% increase in RevPAR.

Nick Pattie, KPMGs director of travel, leisure and tourism practice, said, The continuing growth in 2006 RevPAR across all markets is impressive and has exceeded previous peak performance for some destinations.

There is still headroom for further growth in many regions, especially Asia, he added, although the slowing level of U.S. growth may be an indicator of nearing the top of the cycle with the next couple of years. We see 2007 as maintaining a strong performance in Europe.

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