November 2022, Virtual
21 November 2022, Hilton London Metropole
Moscow is still the world’s most expensive destination for hotel stays, despite the Russian currency collapsing by more than 50 per cent over the last year.
HRG found that average room rate (ARR) in the Russian capital rose by 6.1 per cent to £266.22 per night during the first six months of 2015, compared to the same period last year.
The price rise came as Moscow hoteliers made up for the fall in the value of the ruble by increasing their rates by 59.6 per cent when measured in local currency.
The figures were revealed as part of the HRG Interim Hotel Survey report which found that London was the 15th most expensive city for hotel rooms with an average rate of £ 169.12, up by 0.2 per cent on last year’s figure of £168.84.
After Moscow, the most expensive cities were New York with an ARR of £222.79 per night, San Francisco (£222.09), Geneva (£197.65) and Zurich (£196.86).
The Americas was the only region to show overall ARR growth with hotel prices rising by 9.9 per cent year-on-year. While the Middle East and West Asia region saw a fall in prices of 19.5%, mainly due to Russia’s economic problems which has stifled demand.
Margaret Bowler, HRG’s director of global hotel relations, said: “We have booked more hotel room nights than last year, illustrating an increase in the number of corporates travelling to do business. It’s been an interesting half year for the hotel business.”
She added that there were also signs of significant rate differences within some key business travel cities such as New York. “This in-city fragmentation is well illustrated if we look at New York,” said Bowler. “The Times Square area is seeing a lot of new bed stock which has resulted in a stagnation of ARR whereas in other parts of the city, we continue to see ARR rising.
“Clearly this can benefit the corporate client who has flexibility to enable their travellers to book in these city areas and benefit from the lower room rates.”
The impact of low oil prices can be seen in Aberdeen where hotel prices have fallen 14.5 per cent from £144.35 last year to £123.39.