Russia Hotel Rates Top Europe Survey

<I>London</I> - Business travelers to Russia are being charged top rates by hotels cashing in on new business.

Russia is the most expensive city in Europe, with average room rates of $243 a night, according to a Hogg Robinson BTI survey of European markets. The survey, which is based on 1996 rates, also found that St. Petersburg's average rate was $230.

Zurich was rated the second most-expensive European city, with a nightly rate of $240, compared with only $113 in the United Kingdom.

However, Swiss hotel rates were 2 percent lower than they were in 1995, while U.K. rates were 8 percent higher.

Other increases occurred in France, with 8.5 percent, and Sweden, with the largest increase--20 percent. Belgian rates dropped by 9 percent, and the Netherlands prices fell 5.5 percent.

Overall, the rate of increase does appear to be slowing. Sixty-eight percent of the countries surveyed showed an increase over 1996, compared with 86 percent in the first half of that year.

"Companies are finding that they have to pay premium rates if they want to guarantee getting a room, especially at key times, and that contributed to the increase," said Mike Platt, Hogg Robinson corporate affairs director. "I believe this will continue throughout 1997 and 1998.