2017 UK hotel rates show increase despite turbulent times

LONDON – Despite the UK’s turbulent last few months which saw terrorist attacks in both London and Manchester, average hotel rates saw a +3% increase compared with last year. 

The results of HRS’ quarterly hotel price analysis takes the average rates from 1 April to 30 June and compares them with 2016. 

Keith Watson, Director, Hotel Solutions, HRS, commented “The Easter break fell in to this analysis so we expected to see an increase following the Q1 results in which all rates in the UK were showing a decline”.

Reading, the host of several headquarters of British and multinational companies led the way with the largest rate increase of +25.5% followed by Edinburgh and our capital. Whilst Liverpool saw the biggest drop (-11.8% / £111) followed by Glasgow (-11.7% / £121). In London the hotel rates increased both from the previous quarter and compared to last year (+7.3% increase). Manchester has however seen a decrease in rates from last year (-1.7%) but a big increase from the first quarter (£95 in Q1 compared to £134 in Q2). 

Table 1: Average prices per room for hotel accommodation in major cities in UK in Q2 2017. Evaluation period: 01.04.2017 – 30.06.2017. Currency conversion rates correct as of 17.7.2017

Lisbon shows the highest rate increase in Europe
Looking at the whole of Europe, Lisbon is at the forefront of significant price fluctuations. The coastal capital city of Portugal was priced at an average overnight rate of £129 which puts it in the lower half of the table, but with the biggest increase of +18.9% compared to 2016. Just last quarter rates were at £75.

Lisbon was followed closely by Madrid with +17% (£133 per night) and Prague with +15% (£105 per night). The most expensive city in Europe was Oslo with an average rate of £247, although one night in the Norwegian city this year has decreased by 2.3 percent compared to the previous quarter. Dublin and London were ranked second and third with £277 and £217 respectively. 

Watson continues “Lisbon has recently grown in popularity, from London it’s just a 2h 45m flight, no time difference and benefits from year round warmer climates making it a great destination for both business and leisure. Spain has seen a growth in business due to terrorist attacks in North Africa and Turkey. In Turkey, Istanbul remained as the lowest on the table as room prices fell by -9% to an average of £81 in 2017, which is probably due to the political developments and the resulting downturn in guest numbers”.

Table 2: Average prices per room for hotel accommodation in major cities in Europe in Q2 2017. Evaluation period: 01.04.2017 – 30.06.2017. Currency conversion rates correct as of 17.7.2017

Toronto and Seoul see biggest rate developments on the opposite end of the scales 
Two cities from the USA are leading the way around the world: New York is at the top with £312 (+ 13.7%), followed by Washington £288 (+ 6.8%) and Sydney with £235 (+ 26.4%). The cheapest overnight rate of all top destinations was in Kuala Lumpur at £59 per night meaning travellers could book five nights in Malaysia’s capital compared with just one night’s stay in New York. 

Table 3: Average prices per room for hotel accommodation in major cities in the world in Q2 2017. Evaluation period: 01.04.2017 – 30.06.2017. Currency conversion rates correct as of 17.7.2017

Watson commented “Two striking developments became apparent in this analysis: Toronto hit +40% on the average overnight rate. We will continue to check on this trend as Q1 also showed a large development of 29.1%.  Comparatively in Seoul, the rates went down by a whopping -51.7% showing extreme fluctuations from just last year where we saw a 32.5% rise in rates from 2015. The recent diplomatic row between China and South Korea could have an impact on the country's number of international visitors”.

Tatiana Rokou

News Editor - TravelDailyNews Media Network | + Posts

Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.

She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

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