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UK hotel rates remain stable

HRS’ recent price radar survey

HRS’ recent price radar survey has revealed that hotel prices in the UK have remained stable overall in the third quarter of the year. On average, one night in a hotel in the UK would set you back £150, a rate which reflects a small increase of 1.6 per cent compared to the same period last year. 

Despite the UK average hotel rate remaining relatively stable, there are some steep fluctuations to be noted in some of the country’s top destinations. Most notable is Leeds with a sharp decline of 12.5%.  At the other end of the scale, Reading saw an increase of over 17%.  The Capital remains the most expensive city in the country with an average rate of £156, up 2.9% on last year.

Keith Watson, Director Hotel Solutions, HRS commented “It seems that London rates have settled following the terror attacks we saw earlier in the year.  The reduction in average rate in Leeds is an interesting result – business there is strong and we continue to see a growing flow of business travel to and from the city.  One of the UK’s top music festivals takes place in Reading every August which most likely explains the hike in prices during this period.”

Further north, Edinburgh has seen a 7.9% increase in rates (£123 to £132 average daily rate)

In Europe, Barcelona is booming

Q3 saw rate increases across Europe.  Barcelona recorded a strong price increase of more than 20% compared to the previous year. In the Catalan capital, travellers paid an average of £134 for hotel accommodation in the third quarter. “As the political changes unfold in Catalonia we might expect to see a softening in leisure demand which would be reflected in prices” noted Keith. Double-digit growth also took place in Amsterdam (£130, +12.3%), Athens (£103, +14.9%), Lisbon (£102, +12.7%), Prague (£78, +14.3%) and Warsaw £73, +10.8%). Istanbul remains Europe’s cheapest destination with an average room rate of just £68, despite an increase of 8.6%. And Zurich is the priciest with an average rate of £160.

Worldwide: New York remains the most expensive destination

Globally, New York remains the most expensive city with an average room rate of £226 – no change from the previous quarter. Washington follows closely with a rate of £186, a slight drop of 0.5% from the previous year.  Outside of the US, Sydney follows with an average rate of £161. About the evaluation: All hotel bookings in the period of 1 July 2017 and 30 September 2017 that were not cancelled were surveyed. Single as well as double rooms, with and without breakfast in hotels of the categories 1 to 5 stars were considered in the selection. Destinations with a correspondingly high booking volume were evaluated. 

Graphic: Kirsten Semmler | Vector data: Adobe Stock