Hotel rates in the UK have risen by 3.4 per cent to an average of £88.51 per room per night over the last year.

Figures from hotel industry research firm STR Global also showed that the occupancy rates at UK hotels had also increased by 2.4 percentage points to an average of 81.9 per cent in October compared to the same month in 2013.

The increase in UK hotel rates was boosted by double-digit increases in ADR (average daily rates) in both Manchester and Edinburgh.

Across Europe, there was a 4.5 per cent year-on-year rise in ADR to €110.42 which STR said was “the highest rate we’ve seen in any October in the past 10 years”, as occupancy picked up by 2.3 points to 74.7 per cent.

Although European ADR actually fell by 3.8 per cent when measured in pounds to £87.05 due to the current strength of the UK currency against the euro.

Elizabeth Winkle, managing director of STR Global, added: “The ADR growth is driven mostly by northern Europe, with help from southern Europe.”

But there was a mixed picture for hotel rates in some of Europe’s key countries such as Germany where ADR fell by 3.7 per cent to €101.48 in October despite a 1.6 percentage point rise in occupancy.

While average rates in both Italy and Spain rose by 3.4 per cent to €132.93 and 5.3 per cent to €91.68 respectively during October.

“In northern Europe, when measured in local currency year-to-date, markets such as Dublin, London, Copenhagen and Edinburgh have contributed to ADR growth,” said Winkle.

“Amsterdam, Geneva, Paris, and Zurich saw the highest year-to-date ADR levels in the region, when measured in euros.” 

STR said that Athens was the only major European city to see double-digit growth in occupancy which rose by 18.2 percentage points to 79.6 per cent year-on-year. Tel Aviv in Israel saw the biggest drop in room sales – down by 24.4 points to 64.9 per cent last month.

The Russian capital of Moscow has seen the biggest year-on-year fall in hotel rates with a 21.7 per cent drop to an average of €110.89 in October, although this is still just above the European average.


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