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Heathrow Airport hotel rates rise

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Business people looking to stay at a hotel close to London’s Heathrow Airport have been hit by a hike in average room rates, according to figures.

Customers paid an average of £110.60 a night to stay at Heathrow airport hotels in the first half of this year, an increase of six per cent on the same period last year, corporate travel services company HRG found.

Hotel room rates also increased across the capital. London rates were two per cent higher in the first half of this year compared to 2010, increasing from £154.18 to £156.82.

HRG’s report said: “London had a weak first quarter, with growth hindered by poor weather conditions in January. In April, while the leisure market benefited from the Easter bank holiday and the additional Royal Wedding holiday, corporate travel experienced a 2.1 per cent drop in rate.

“Despite a stronger performance in May and June, London did not record an overall increase in the second quarter of the year.”

Staying at a hotel in London was significantly more expensive than Cardiff. A night in a hotel in the Welsh capital cost an average of £76.69, although this is still one per cent higher than during the same period last year.

Customers paid an average of £110.60 a night to stay at Heathrow airport hotels in the first half of this year

Prices increased by two per cent in Leeds, Bristol and Manchester. However, rates in Belfast and Birmingham remained relatively unchanged, while hotel room prices dropped by seven per cent in Liverpool and two per cent in Newcastle.

Compared to other major cities around the world, London was comparatively cheap during the first half of this year. HRG’s report found that 24 other world cities had higher average room rates than London.

Moscow hotels were found to be the most expensive, with room rates averaging £260.68. Hotel rates in Zurich rocketed by 17 per cent to average £220.40 per night.

“Despite widespread speculation that rates would rise sharply in the UK in 2011, this failed to materialise and the top 12 cities saw an average flat percentage rate year-on-year versus 2010,” said HRG’s report.

HRG director of global hotel relations Margaret Bowler was positives about the performance of London’s hotels going into 2012.

Bowler said: “Key international cities like London, New York and Paris reported hotel rate increases, demonstrating buoyancy and resilience. London, in particular, is expected to flourish next year as it hosts the Olympics next summer. However, many UK provinces did not perform as well as expected.”




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