UK average room rates fall 12% in 2016

Average room rates in the UK have dropped by nearly 12% in 2016 compared with the previous year, according to research released today.

Data from hotel solutions provider HRS found average room rates fell 9% in London compared with 2015, with the average night costing £150 compared with £165. However, the capital still remained the UK’s most expensive destination and the second-most expensive in Europe.

Across the regions, Edinburgh (£122) and Manchester (£102) were the second and third most expensive destinations in the UK, but room rates fell 10.3% and 7.9%, respectively.

Bristol reported the largest drop in average room rates of 11.5%, followed by Liverpool at 10.5%. Of the cities in the report, Bournemouth reported the lowest drop at just 1%.

Andy Besent, managing director of HRS in the UK and Ireland, said the fall out of the Brexit vote last year is “likely to have had a knock on effect” on the average room rates of hotels in the UK.

“The hotel industry should be prepared further as we brace ourselves for what might be the full impact of Brexit later this year, and also the performance of the British pound against the Euro,” he said.

“Whilst our data has revealed that average room rates have steadily fallen across all top destinations in the UK throughout 2016, we would urge hoteliers to consider how they can capitalise on demonstrating that Britain is open for business as a cost effective option for visitors.”

Meanwhile, New York was the most expensive destination globally with the average overnight stays costing £210 – down 9% on 2015 prices.