New research from hotel solution provider HRS revealed that major cities in the UK, including London, saw a decline in the average hotel room rates in the second quarter of 2016 compared with the same period last year.
Having held the top spot in Europe for several years, London has been knocked off its perch as the most expensive capital to stay in, with rates showing a 7% decline on the same period last year.
In contrast, data for the majority of capitals in Europe and internationally showed that the average cost of a hotel room per night is rising, bar a handful of destinations.
Dublin overtook London with average hotel room rates at £163, a 70% rise and £15 more expensive, while Oslo stole the top spot as the most expensive European capital at £186 per night – a 70% increase on the same period last year.
However, London continues to have the most expensive hotel rooms in the UK at an average room rate of £148; Manchester takes second place with a average room rate of £100 (2% down on the same time last year); and Bristol comes in third with a average rate of £98% (down 10%).
Jon West, managing director of HRS for the UK and Ireland, said: “With UK room rates dropping across the board in Q2 2016 by an average of 7% against the same period the previous year, this is certainly something to keep an eye on but it could present an opportunity for UK tourism and the business travel industry.
“For business travellers and holidaymakers alike, this should make the UK more appealing as a place to stay as for many years now it’s been renowned for being so expensive.”
Across the globe, and despite this year’s Olympic Games in Rio de Janeiro, the cities that experienced the largest decrease in hotel room rates are Sao Paulo and Rio de Janeiro in Brazil.
The report said rates are likely to have been impacted by people being deterred from travelling to South America due to the risks associated with the Zika virus, which has been extensively covered in the media.
New York retained its position as the most expensive city in the world with an average room per night costing £204.