Global corporate hotel rates increased by 4 percent year
over year and were up in two-thirds of monitored key corporate travel cities,
according to Hogg Robinson Group's annual mid-year survey, based on rates paid
by its U.K. clients combined with industry intelligence.
By comparison, only a quarter of the cities in HRG's survey
last year showed rate increases. Even so, HRG director of global hotel
relations Margaret Bowler said buyers' experiences in upcoming negotations would
vary widely by city.
"There are pockets where demand is very high and rates
are going to move, but it's not everywhere," Bowler said. "You can't
paint the world with one brush and say rates are going to go up by X."
On a regional basis, rates increased the most in
Asia/Pacific, 7 percent higher than the first half of 2010. Sydney was the most
expensive city in the region, with rates 16 percent higher than last year in
constant-currency terms. Rates also increased in Singapore (10 percent),
Bangalore (22 percent) and Mumbai (4 percent), while they were down slightly in
Hong Kong (-3 percent) and Tokyo (-4 percent).
In North America, corporate rates were 4 percent higher in
terms of local currency and up in all major cities except Los Angeles, Toronto
and Montreal, where rates largely were flat with 2010 levels.
Rates rose the most in San Francisco, up 20 percent in U.S.
dollars, and were up by 9 percent each in Houston, Philadelphia and Washington,
D.C. Additionally, Washington overtook New York as the most expensive U.S. city
for corporate rates and became the sixth-most expensive city globally in
constant currency. Despite several new hotel openings, however, rates in New
York were up 6 percent. They increased by 5 percent in Chicago.
Europe accounted for the five most expensive cities globally
in constant-currency terms. Moscow remained the world's most expensive city,
with rates largely unchanged from last year, followed by Geneva (up 13
percent), Zurich (up 17 percent), Paris (up 5 percent) and Stockholm (up 10
percent).
Additionally, Istanbul had the highest increase of the key
cities, up 24 percent from 2010 levels in constant currency. HRG said that
increase comes both from a growing interest in Istanbul as a business
destination and travelers' tendency to gravitate toward five-star hotels there
due to security concerns.
In much of the rest of the Middle East, however, supply
outpaced demand, leading to rate decreases. Abu Dhabi was down 15 percent in
constant currency, and Dubai was down 7 percent. Both fell out of the top 10
most expensive cities for corporate hotel rates.
Rates in Eastern Europe also were down 6.6 percent overall.
A few cities, including Bucharest and Kiev, had slight increases.