Hogg Robinson Group clients saw average hotel rates in 2015 increase
year over year but not as much as they did in 2014, according to the Hogg
Robinson Group's 2016 Hotel Survey.
HRG clients' average daily rates in 2015 increased year over
year in 23 cities in British pound terms, down
from 37 the year prior. At the same time, average negotiated rates declined in
2015 in 32 cities, compared with the year prior's 42.
"The survey shows that many hotel groups simply didn't
achieve the rates or growth that they had been expecting," HRG director of
global hotel relations Margaret Bowler said in a statement. "This is
primarily a result of soft demand, decreases in supply and a number of new
products and categories of product, together with clients continuing to look
for savings.”
The cities that experienced the largest 2015 year-over-year ADR increases, in British pound terms, were Miami (20.3 percent), San
Francisco (12 percent), Atlanta (11.7 percent), Belfast (8.6 percent) and
Mexico City (8.1 percent). Nevertheless, Moscow, which experienced a 1.9
percent increase in ADR to £253.71, held as the most expensive city for
corporate hotel rates for the 12th consecutive year.
Cities that experienced the largest 2015 year-over-year drops
in ADR included Rome (27 percent), Aberdeen (20.7 percent),
Paris (16 percent), Oslo (11.5 percent) and Istanbul (11.1 percent).
Among the global
regions, only the Americas saw ADR grow year over year. Much like last
year, there were disparities by city in ADR growth
"When we look ahead to this year we can expect to enjoy
a number of new rooms coming into the market," Bowler said. "Brands
will continue to diversify, delivering new price points for all travelers."
U.K. Spotlight
The United Kingdom cities where HRG clients saw the largest
rate hikes were Belfast (8.6 percent to £96.60), Manchester (6.5 percent to
£100.09) and Cardiff (4.5 percent to £82.28).
Belfast is in a transitional period as it pushes for tourism,
adding new attractions and a major cruise terminal while squeezing corporate
demand into limited supply. The city is expected to add new supply along its
waterfront, which HRG expects will alleviate the crunch. Manchester also saw
corporate demand increase amid strong tourism demand, growing rates despite opening
800 new rooms in 2015. Corporate demand grew in Cardiff, and the city hosted a
number of major sporting events in 2015, including the Rugby World Cup. London
achieved rate growth (3.1 percent to £172.42) but less than hotel groups
expected.
The United Kingdom's largest drop in rate came from Aberdeen, down
20.7 percent to £116.63. Aberdeen is stuck in an intersection of depleted
demand from the weak oil industry and increased room supply.