German hotel profits tumble as economic conditions worsen

German hotel profits fell an average of 12% in 2002, according to the latest figures from consultants Deloitte & Touche.

All hotels recorded in Deloitte’s HotelBenchmark Survey of Germany reported declines in profitability, reflecting the high costs of the business that could not be reduced in line with the fall in customer demand. Occupancy levels dropped by nearly 5% in 2002 to 60%

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