United Kingdom
United States
Asia Pacific
Double-digit growth for Eastern European hotel rates
Eastern Europe, the Middle East and West Africa saw the biggest growth in hotel rates in the six months to the end June 2007.
HRG UK’s 2007 Hotel Survey found that average rates in Eastern Europe climbed 18.7% compared with the same period in 2006, primarily driven by a 7% rise in Moscow rates to £236.06, the highest in the world.
Meanwhile, the Middle East and West Africa region recorded a 14% rise, spurred by the strong performance of Dubai and further investment in Abu Dhabi and Qatar.
The UK saw a slight increase in average room rates, up 4.3% or £4.40 per night, similar to the growth in 2006.
Africa was the only reason not to see significant growth.
HRG director global hotel relations, Margaret Bowler, said: “We have seen a solid increase in commerce between East and West over the past 10 years and can see that demand is outstripping supply (in Eastern Europe), pushing up room rates at a steady level.
“In Africa the lack of growth can be attributed to the GBP conversion rate against the ZAR (South African Rand). Room rates in GBP rose by 3% but when converted to the ZAR, rates rose by 30%, with the knock on effect of limiting local client bookings.”
In Asia, Mumbai showed rapid growth, with an increase of 30% over the last six months following a climb of 49% for the full year 2006
In Europe, Barcelona rates grew by 18%, rates in Berlin were up by 17% and Stockholm by 10%.
London saw 5% rate growth, slightly down on the average rate growth of 7% in 2006.
Bowler concluded: “The figures show average room rates are generally performing well and the global hotel industry has once again experienced healthy growth in the first six months of 2007.
“Europe has seen strong increases, and rates in the Middle East and Asia have also risen. As these two particular markets have yet to reach full maturity, we expect to see the trends continue over the foreseeable future. Indeed, as economic investment in each local economy increases, we may even see a significant increase in the pace of growth.”
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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