HRG: Hotel Rates Still Dropping Throughout The World

Hotel rates have decreased globally in every market except for Abu Dhabi, leaving favorable negotiating conditions for corporate travel buyers, according to Hogg Robinson Group's 2009 Six-Month Hotel Survey, published today.

Data composed of industry intelligence along with rooms booked and paid for by HRG's U.K. clients showed that most major cities in the first six months of 2009 saw rates decline by double-digit percentages in local currency compared with the first six months of 2008. The only exception was Abu Dhabi, where rates increased 5 percent.

"The latest figures suggest that the industry has some way to go before rates stabilize," HRG director of global hotel relations Margaret Bowler said in a statement. "With all key global cities recording rate declines in both quarters, London was the only city where decline slowed marginally."

Moscow still remained the most expensive city in the world for hotels, though by a much lesser margin due to its rate decline of 10 percent in local currency and Abu Dhabi's increase. Dubai and New York, meanwhile, both saw decreases of 24 percent in local currency, and Milan, Geneva and Hong Kong all declined between 16 percent and 18 percent.

Mumbai also took a hit, with rates declining 23 percent year-over-year in local currency. The city has fallen out of the list of top 10 most expensive cities, in part because of last November's terrorist attacks, according to HRG.