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Hotel rates in the UK’s top destinations in Q3 have seen a year-on-year increase, suggesting that confidence continues to grow in the British economy.
This is according to new research from hotel solutions provider HRS, which shows London has remained Europe’s most expensive capital to stay in for the last three quarters of 2014, seeing an increase of more than 17%, compared to Q3 last year.
Average room rates in London are now reaching nearly £134, placing the capital ahead of Zurich and Copenhagen, which are the second and third most expensive destinations in Europe with an average room rate of £119 and £111 per night respectively.
Edinburgh has also kept hold of its position as the second most expensive in the UK (£119) after seeing a significant increase of almost 18% in average room rates compared to this time last year.
The Welsh capital, Cardiff, has also increased by over 18% compared to Q3 2013, but still offers the cheapest option, with room rates costing an average of £81 per night.
Of all the UK cities, Leeds has seen the biggest growth with a 27% in room rates compared to the same period last year, with rooms averaging £84 per night.
Jon West, managing director of HRS for the UK and Ireland, said: “The UK is on track to be the fasting growing G7 economy this year and this could be reflected in the price increase of hotel rooms across the nation. Thanks to the economic recovery, tourism is picking up again and it appears businesses are also starting to feel more confident in sending employees back out on travel.
“Regional capitals are often popular destinations which can explain the rate development in London, Edinburgh and Cardiff. Leeds’ room rates could have increased thanks to the legacy of Tour De France which kicked off in Yorkshire this summer and attracted much media attention, showcasing the area to potential visitors.”
The report also showed that room rate growth in Europe was much lower than the UK, with an average room rate increase of just 2% across Europe’s top 21 destinations, compared to 17% in the UK.
New York remained the most expensive destination globally with rooms averaging £168, up 7% compared to the same time last year.
Image courtesy of VisitEngland/Diana Jarvis
