Strong Asian growth leads global hotel rate increase

Hotels worldwide have reported 4% rate growth during the first six months of 2011, according to the latest hotel survey from corporate travel services company Hogg Robinson Group, Basingstoke, U.K.

Of the 50 cities surveyed by Hogg Robinson, 33 reported a year-on-year increase in hotel rates, with particularly strong growth reported in Asia.

Other trends noted by Hogg Robinson include:

  • Moscow reported the most expensive hotel rates.
  • Istanbul achieved the highest increase in hotel rate with 37%.
  • The strongest performing region was Asia Pacific, where average room rates rose by 7%.
  • Hotel rates in Eastern Europe had the highest regional rate decrease of 6.6%. These average rates may have been even lower if not for strong performances in both Bucharest, Romania, and Kiev, Ukraine, where rates rose 4%.

“The shift from Europe to Asia in hotel rate growth is significant in that it demonstrates changing business priorities,” said Margaret Bowler, Hogg Robinson director of global hotel relations. “The rates demonstrate that demand has increased for travel to emerging regions as a result of the need to do business and that travelers are willing to pay higher hotel costs during their stay.”

To read more of the analysis, click here.