Hotel room rates on the rise worldwide

The latest data from hotel solutions provider HRS has revealed that the average cost of staying in a hotel room is on the up across most of the world, bar a small handful of destinations. 

Analysing data from Q3, 2015, London retained its position as the UK’s most expensive city and Europe’s most expensive capital with average rooms costing £140 per night.

Edinburgh also maintained its position as the second most expensive destination in the UK (£116), seeing a moderate increase of 7 per cent in average room rates compared to the same period last year.

For the first time, Bristol emerged as the third most expensive place to stay following an increase of 17 per cent compared with the same quarter in 2014, with an average room costing £96 per night.  This could possibly be attributed to the instalment of the popular Shaun in the City trail, as well as the internationally renowned Balloon Fiesta that takes place annually.

Meanwhile, with an increase of 31 per cent in room rates per night in Q3 2015 compared with the same quarter in 2014, Cardiff saw the largest uplift with hotels on average charging £95 per night.

Jon West, managing director of HRS for the UK and Ireland, said: “In Cardiff, major sporting events such as the Rugby World Cup (RWC) and The Ashes which took place during Q3 2015, will have contributed to the room rate increases as hoteliers capitalise on the surge in demand from visitors.

“Indeed, RWC matches played in Cardiff, Gloucester and Exeter could have driven demand for rooms in the area, meaning that Bristol benefited too.  This could be one of the reasons why it has moved into the top three most expensive places to stay in the UK.

“Looking at the UK as a whole, room rates are remaining buoyant as business and leisure travellers continue to have a rise in confidence when it comes to spending.”

Looking at data for Q3 2015, London saw an increase of more than 16 per cent compared with Q3 2014.  With average room rates in London now £15 more per night more than the second most expensive European capital, Zurich (£125), Istanbul made a surprise new appearance in the number three spot with an average room rate of £110 per night.

Milan enjoyed the biggest room rate increase of nearly 20 per cent, with rooms on average now costing £90 per night.  Whilst Paris, Rome and Madrid saw minor decreases in their average rates, Moscow’s fell by a massive 20 per cent compared with Q3 2014, seeing rooms sell for just £64 per night in Q3 2015.

Talking about room rate development on the continent, West said: “In Q3 2014, the outlook for average room rates saw just a two per cent rise across the 21 destinations.  However, this year, the picture is certainly changing with an average increase of 9 per cent for the same quarter.  The UK meanwhile has seen an average increase of 16 per cent across the nine major cities.”

City travellers continued to find the cheapest rates in Prague – averaging just £49 per night, followed by Warsaw (£53) and Budapest (£56).  When it comes to affordability, these competitive rates present these three destinations as food for thought when it comes to holding events and conferences abroad if working to a tight budget.