London no longer Europe’s most expensive hotel market

New data from HRS has revealed that major cities across the UK, including London, have seen a decline in average hotel room rates when looking at Q2 2016 compared with Q2 2015.

Having held the top spot in Europe for the last few years, London has been knocked off its perch as the most expensive capital to stay in, with rates showing a seven per cent decline on the same period last year.

However, data for the majority of capitals in Europe and internationally showed that the average cost of a hotel room per night is on the up, bar a small handful of destinations.

Whilst London continues to have the most expensive hotel rooms in the UK at an average room rate of £148, Manchester takes second place with a room per night costing £100 – two per cent lower than the same period last year. Taking third place is Bristol, offering rooms at £98 on average – a 10 per cent drop compared with Q2 2016.

Meanwhile, despite the excitement surrounding the Games in Rio, the cities that experienced the largest decrease in hotel room rates are Sao Paulo and Rio de Janerio. Rates are likely to have been impacted by people being deterred from travelling to South America due to the risks associated with the Zika Virus, which has been extensively covered in the media.

Jon West, MD of HRS for the UK and Ireland, commented: “It will be interesting to monitor how rates are affected during the Games this summer for Rio to see if these prices rise as hoteliers look to maximise spend by sports fans visiting during this time. The Q3 2016 results will certainly be telling.”

Talking about the UK outlook, he said: “With UK room rates dropping across the board in Q2 2016 by an average of seven per cent against the same period the previous year, this is certainly something to keep an eye on but it could present an opportunity for UK tourism and the business travel industry.  For business travellers and holidaymakers alike, this should make the UK more appealing as a place to stay as for many years now it’s been renowned for being so expensive.”

Looking at Europe, Dublin overtook London with average hotel room rates at £163 – a whopping 70 per cent rise and £15 more expensive than London.  However, it was Oslo that stole the top spot as the most expensive European capital to stay in at £186 per night – also a massive 70 per cent increase on the same period last year, and nearly £40 more expensive than London.

Jon said: “Dublin is certainly one to watch at the moment and has recovered significantly following its recent economic crisis. The city is increasingly seen as an ideal business destination and has already attracted major global firms, including Google, Facebook, Amazon and Microsoft.”

When comparing data from Q2 in 2016 with the same period in 2015, hotel prices have fared better across Europe with almost 50 per cent of cities recording an increase. The top European destinations that saw the highest percentage increase for average hotel room rates include Oslo (70 per cent), Stockholm (15 per cent) and Helsinki (14 per cent).

Talking about room rate development in these Scandinavian countries, Jon said: “It is possible that the demand has gone up for hotels in these cities as they are considered safer places to travel to than mainland Europe. With recent terrorist events and the uncertainty surrounding Brexit, businesses could be looking for alternative places to stay.”

Top UK & Ireland Destinations 1-5***** 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: 01.04.-30.06.2016

GBP rate correct as of 25.07

Top Destinations UK & Ireland ∅ Room rate 1*-5*****      per night Q2 2016 Rate development compared to Q2 2015 in %
Birmingham £91.24 (109 €) -4.4 %
Bristol £97.94 (117 €) -10 %
Cardiff £94.59 (113 €) -8.1 %
Dublin £163.23 (195 €) +69.6 %
Leeds £94.59 (113 €) -8.1 %
Liverpool £92.08 (110 €) -9.1 %
London £148.16 (177 €) -7.3 %
Manchester £100.45 (120 €) -2.4 %

 

Top European Destinations 1-5***** Hotels

Average room rate for hotel stays in European cities.
Comparison of average rates, based on non-cancelled bookings. Public and corporate bookings.
Period: 01.04.-30.06.2016

GBP rate correct as of 25.07

 

Top Destinations Europe ∅ Room rate 1*-5*****      per night Q2 2016 Rate development compared to Q2 2015 in %
Amsterdam £126.40 (151 €) +1.3 %
Barcelona £102.12 (122 €) +3.4 %
Berlin £77.85 (93 €) 0 %
Brussels £106.31 (127 €) -0.8 %
Budapest £69.48 (83 €) +5 %
Copenhagen £138.12 (165 €) +10 %
Helsinki £117.19 (140 €) +13.8 %
Istanbul £65.29 78€ -18.8%
Lisbon £80.36 (96 €) -3 %
London £148.16 (177 €) -7.3 %
Madrid £83.71 (100 €) +6.4 %
Milan £99.61 (119 €) -13.8 %
Moscow £72.83 (87 €) -16.4 %
Oslo £185.83 (222 €) +69.5 %
Paris £118.86 (142 €) -2.7 %
Prague £66.97 (80 €) +2.6 %
Rome £91.24 (109 €) -6.8 %
Stockholm £132.26 (158 €) +14.5 %
Warsaw £66.13 (79 €) -4.8 %
Vienna £82.87 (99 €) +3.1 %
Zurich £144.81 (173 €) 0 %

 

Top International Destinations 1-5***** Hotels

Average room rate for hotel stays in international cities.
Comparison of average rates, based on non-cancelled bookings. Public and corporate bookings.
Period: 01.04.-30.06.2016

GBP rate correct as of 25.07

Top Destinationen international ∅ Room rate 1*-5*****      per night Q2 2016 Rate development compared to Q2 2015 in %
Bangkok £71.15 (85 €) +7.6 %
Beijing £66.97 (80 €) -12.1 %
Buenos Aires £97.94 (117 €) +20.6 %
Cape Town £101.29 (121 €) +15.2 %
Chicago £153.19 (183 €) -8.5 %
Dubai £97.10 (116 €) -24.2 %
Hong Kong £134.77 (161 €) +6.6 %
Kuala Lumpur £56.08 (67 €) -1.5 %
Mexico City £97.94 (117 €) -8.6 %
Miami £126.40 (151 €) +8.6 %
Montreal £96.26 (115 €) -5.7 %
New York £204.25 (244 €) -12.2 %
Rio de Janeiro £105.47 (126 €) -32.3 %
San Francisco £189.18 (226 €) +4.2 %
São Paulo £68.64 (82 €) -22.6 %
Shanghai £73.66 (88 €) -5.4 %
Singapore £142.30 (170 €) +1.8 %
Sydney £136.44 (163 €) -3 %
Tokyo £156.53 (187 €) +8.7 %
Toronto £96.26 (115 €) -9.5 %

 

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