Hotels around the world have reported rate growth of 4% in the first half of 2011, according to the latest hotel survey from Hogg Robinson Group. Of the 50 cities surveyed, 33 reported a year on year increase in hotel rates with strong growth in Asia and an unexpected boost from cities such as Istanbul. Growth would have been higher had cities in Africa and Eastern Europe not reported year on year decreases over the last six months.

Findings include:

* Over two-thirds of the cities surveyed reported hotel rate growth, compared with only one-quarter of cities last year, supporting signs of global recovery and pick up in business travel in recent months.

* Moscow retained its top position with the most expensive hotel rates, despite a modest rate increase in local currency and GBP. It bounced back from last year’s 12% decrease despite many new hotel openings, demonstrating the city’s position as a strong business destination.

* Istanbul achieved the highest increase in hotel rate of 37% due to the growing interest surrounding the city as a business destination. Travellers to Istanbul are also conscious of its security issues and more inclined to stay in five-star accommodation.

* The strongest performing region was Asia Pacific, where average room rates rose by 7% due to the concentration of hotel development and financial centres including Hong Kong and Singapore.

* Hotel rates in Eastern Europe had the highest regional rate decrease of 6.6%. These average rates may have been lower still, were it not for strong performances in both Bucharest and Kiev where rates rose by 4%.

* UK cities reported weak hotel rates when compared to the previous year, in spite of a boost from the January VAT increase. Hotels in the Heathrow area reported strong growth but many other cities such as Liverpool showed a decrease in rates.

* North American destinations finished the first half of the year with an overall 4% rate increase in local currency. All destinations reported growth in local currency with the exception of Los Angeles, Toronto and Montreal which were flat.

Source: Hogg Robinson Group