UK hotel prices ‘increased 1.7% in 2010′

The average price for a room in a city hotel in the UK rose by 1.7% last year, bucking a downward trend in Europe, a survey has revealed.

Hogg Robinson Group (HRG) discovered that London hotel rooms cost an average of £156.91 in 2010, which represents a 3% rise on the 2009 figure.

The next most expensive UK hotel rooms were in Aberdeen, but the average price of £108.58 was 8% down on 2009.

Heathrow airport hotel room rates rose by 5% to £106.92 last year, which was the biggest increase among the UK locations, while average rates at Gatwick airport and at Bristol increased by 3%, and hotels in Edinburgh (£92.43) were 1% more expensive than in 2009.

However, rates at Dublin hotels fell by 11%, hotels in Milton Keynes in Buckinghamshire were down 14% and hotels in Manchester and Liverpool were 3% less expensive than in 2009. Prices for Birmingham hotels were unchanged year to year, and hotels in Newcastle upon Tyne and Belfast were 2% and 4% cheaper respectively.

Despite a 3% fall on 2009’s figure, Moscow was the world’s most expensive city in which to book a hotel room, with the average room costing £258.67 in 2010. London’s room rates, meanwhile, were the 29th most expensive in the world. 

Douglas McWilliams, from the Centre for Economics and Business Research, said: “The UK economy recorded stronger-than-expected growth in 2010 and hotel prices returned to growth.

“Across the UK, some interesting trends emerged as London led the recovery in hotel prices. Within the EU, Heathrow saw the third highest growth rate in hotel prices.”

He added: “In general, business surveys have shown London and south east England, with its large private sector and lesser reliance on the public sector, to be recovering reasonably well.

“In contrast, many cities in regions that are more dependent on the public sector for economic activity have seen further declines in hotel prices in 2010.”

Copyright Press Association 2011