Hotel Room Rates Rise Globally
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Hotel Room Rates Rise Globally
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Category: Worldwide
This is a press release selected by our editorial committee and published online for free on 2007-08-29
HRG UK’s 2007 half year hotel survey has revealed continued growth and a strong average rate performance for the hotel industry worldwide. Moscow once again achieved the highest average room rates, alongside significant growth in the rapidly developing markets of Dubai and Mumbai.
Key findings include:
* Moscow remains the most expensive city with average room rates of £236.06 compared with £220.57 in 2006
* Mumbai again showed rapid growth, with an increase of 30% over the last six months following an uplift of 49% in average rates achieved for the full year 2006
* Of the key European cities, Barcelona grew by 18%, rates in Berlin were up by 17% and Stockholm increased by 10% between January and June 2007
* London continued to perform well with 5% rate growth in the first 6 months of 2007, compared to average rate growth of 7% in 2006
* Of all the regions worldwide, only Africa noted a decline in average room rates
Margaret Bowler, Director Global Hotel Relations at HRG, commented: “The figures show average room rates are generally performing well and the global hotel industry has once again experienced healthy growth in the first six months of 2007.
“Europe has seen strong increases, and rates in the Middle East and Asia have also risen. As these two particular markets have yet to reach full maturity, we expect to see the trends continue over the foreseeable future. Indeed, as economic investment in each local economy increases, we may even see a significant increase in the pace of growth.”
She continued: “Another key finding of our latest survey is the ever-growing importance of booking in advance, particularly for travellers looking to secure the best rates. Last minute bookers are increasingly suffering from inflated rates in the most popular locations, and clients need to ensure that they have negotiated last room availability in their corporate rates to avoid this.”
In a period where the dollar exchange has been weak, key US commercial cities have also recorded increases, with average rates in New York up by 4% and Houston increasing by 8%.
All major European markets demonstrated varying degrees of average rate growth when compared to the same period in 2006, with the exception of Geneva, where average rates fell by 3%.
HRG UK’s survey is based upon a combination of industry figures, actual room nights booked and rates paid by its UK clients during January-June 2007 (inclusive) and is compared to data for the same period in 2006.
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