Hotel solutions provider HRS has compared average hotel room rates worldwide over the last four years (2011-2015) and revealed that despite economic uncertainties during this period, the outlook for the UK hotel industry is largely positive with an overall increase in room rates by 26%.
In fact, London is one of the top three most expensive cities for an overnight stay in the world, costing £141 on average per night, according to the latest figures from 2015. Data revealed rates in the city had increased by 31 per cent during the four years, benefitting from the legacy of hosting major events such as the Royal Wedding and 2012 Olympic Games, making it an even more desirable destination for both business and leisure travellers.
In the UK, London, Leeds and Manchester recorded the biggest increases in average room rates per night between 2011 and 2015. During this period, Leeds almost doubled its cost per overnight stay with a 41% rise and 30% for Manchester.
UK hoteliers in Edinburgh and Bristol are also reaping the rewards from an uplift in demand. Edinburgh is the second most expensive city to stay in the UK with an average room per night costing £102 followed by Bristol at £97 per room per night.
Top destinations UK & Ireland one to five-star hotels
Average room rate for hotel stays in British & Irish cities.
Comparison of average rates, based on non-cancelled bookings. Public and corporate bookings.
Period: 01.01.2011-31.12.2015
| Top Destinations UK & Ireland | Room rate 1*-5*per night 2011 (£) | Room rate 1*-5*per night 2015 (£) | Rate development comparison % |
| London | £108 | £141 | 31% |
| Edinburgh | £93 | £102 | 10% |
| Bristol | £81 | £97 | 20% |
| Manchester | £73 | £95 | 30% |
| Leeds | £66 | £93 | 41% |
| Birmingham | £68 | £85 | 25% |
| Liverpool | £68 | £85 | 25% |
Worldwide trends
New York, Rio de Janeiro and Sydney were the most expensive destinations worldwide on average for overnight stays in 2011. Unsurprisingly, New York has maintained this top position, enjoying a 32% price increase in rates from 2011 (£149) to £197 per night in 2015.
In stark contrast, Rio de Janeiro has suffered a 22% decrease in hotel room rates between 2011 and 2015. The latest figures reveal that in 2011 travellers were typically paying £145 per night stay but in 2015 just £113. Despite the city being centre stage in 2014 as the host of the FIFA World Cup, which increased rates in the short term, there was no lasting effect as rates dropped again close to pre-World Cup levels. However as Rio prepares for this year’s Olympic Games, it will be interesting to see if this will benefit hoteliers in the longer term.
Cities that could be ones to watch over the next couple of years, recording the biggest increase in hotel rates from 2011 to 2015, include Miami at 62%, Mexico City at 52% and Beijing at 43%.
However, despite the increase, Beijing still remains one of the cheapest cities for hotel rates, costing just £66 on average per overnight stay in 2015. Other cities with the lowest rates included Kuala Lumpar at £50 and Bangkok at £57.
Top international destinations one to five-star hotels
Average room rate for hotel stays in international cities.
Comparison of average rates, based on non-cancelled bookings. Public and corporate bookings.
Period: 01.01.2011-31.12.2015
| Top Destinations international | Room rate 1*-5* per night 2011 (£) | Room rate 1*-5*per night 2015 (£) | Rate development 2015 compared to 2011 in % |
| New York | £149 | £197 | 32% |
| Washington | – | £154 | – |
| Tokyo | £115 | £129 | 12% |
| Sydney | £127 | £127 | – |
| Singapore | £109 | £125 | 13% |
| Miami | £71 | £115 | 62% |
| Rio de Janeiro | £145 | £113 | -22% |
| Dubai | £82 | £110 | 34% |
| Seoul | £95 | £94 | -1% |
| Toronto | £80 | £93 | 16% |
| Mexico City | £60 | £91 | 52% |
| Mumbai | £89 | £81 | -9% |
| Cape Town | £102 | £81 | -20% |
| Buenos Aires | £77 | £78 | 1% |
| Shanghai | £55 | £67 | -22% |
| Beijing | £46 | £66 | 43% |
| Bangkok | £42 | £57 | 36% |
| Kuala Lumpur | £43 | £50 | 16% |
Moscow suffers from civil and political unrest
Despite being tipped as an up-and-coming business travel destination, Moscow’s fraught economic situation and civil unrest has impacted on its reputation. Consequentially average room prices per night have declined by close to half (44%) from 2011 with hotel rates now costing on average just £70 per night in 2015.
Looking at Europe’s top destinations, London has continued to hold its top spot as the front-runner whilst the Swiss city Zurich retained second place, costing £127 per night followed by Copenhagen (£108) and Paris (£103).
Travelling on a budget
For the cheapest rates in Europe, consider travelling to Prague with average room rates of just £53, as well as Budapest at £58 and Berlin at £68.
| Top-Destinations Europe | Room rate 1*-5* per night 2011 (£) | Room rate 1*-5* per night 2015 (£) | Rate development 2015 compared to 2014 in % |
| London | £108 | £141 | 31% |
| Zurich | £129 | £127 | -2% |
| Copenhagen | £100 | £108 | 8% |
| Paris | £104 | £103 | -1% |
| Amsterdam | £106 | £100 | -6% |
| Stockholm | £100 | £100 | – |
| Milan | £85 | £97 | 14% |
| Helsinki | £90 | £90 | – |
| Oslo | £111 | £88 | -21% |
| Barcelona | £91 | £85 | -7% |
| Rome | £83 | £78 | -6% |
| Athens | £66 | £73 | 11% |
| Madrid | £75 | £71 | -5% |
| Lisbon | £66 | £70 | 6% |
| Moscow | £124 | £70 | -44% |
| Vienna | £79 | £70 | -11% |
| Berlin | – | £68 | – |
| Istanbul | £71 | £68 | -4% |
| Budapest | £56 | £58 | 4% |
| Warsaw | £65 | £58 | -11% |
| Prague | £52 | £53 | 2% |
Jon West, Managing Director of HRS UK & Ireland, comments: “London has clearly continued to hold its own as a major international destination for travellers. UK hoteliers should find it reassuring that other cities are also benefitting from the uplift in demand.”
“Globally the hotel market has fluctuated massively over the past four years especially with recent global events and ongoing economic uncertainties. In addition to this, technological advancements are giving business travellers more control over their bookings than ever before so we really would urge travel and procurement managers to review the effectiveness of their travel programmes on a regular basis to ensure they’re getting the best rates possible to make substantial savings for the long-term.”
