Dublin Now More Expensive for Hotel Rooms than London

Latest data from global hotel solutions provider HRS has revealed that Dublin’s average hotel room rates have risen by 70% to £163 between Q2 2015 and Q2 2016. This means that Dublin rates are on average £15 higher than London, which has seen a 7% drop during the same period. In Europe, the city has also taken the number two spot, with London dropping down to third position in rankings.

However,  London continues to have the most expensive hotel rooms across the UK with average room rates at £148 per night stay, and Manchester takes second place with a room per night costing £100 – 2% lower than the same period last year. Taking third place is Bristol, offering rooms at £98 on average – a 10% drop compared with Q2 2016.

Jon West, Managing Director UK and Ireland, HRS, said: “Dublin is certainly one to watch at the moment and has recovered significantly following its recent economic crisis. The city is increasingly seen as an ideal business destination and has already attracted major global firms, including Google, Facebook, Amazon and Microsoft. Therefore, more business travellers are coming to the city.

“Across the UK, room rates have dropped for Q2 2016 by an average of 7% against the same period the previous year. This is certainly something to keep an eye on but it could present an opportunity for UK tourism and the business travel industry. For business travellers and holiday makers alike, this should make the UK more appealing as a place to stay as for many years now it has been renowned for being so expensive.”

Looking further afield, Oslo stole the spot as the most expensive European capital city to stay in at £186 per night – also seeing a massive 70% increase on rates last year. This makes it nearly £40 more expensive to stay in than London and knocks the capital of England off its perch after London held the top spot for the last few years.

Meanwhile, despite the excitement surrounding the Olympic Games in Rio, the cities that experienced the largest decrease in hotel room rates are Sao Paulo and Rio de Janerio. This is likely to have been impacted on by the heavily media-covered Zika Virus, which has deterred many people from travelling to South America.

Jon added: “It will be interesting to monitor how rates are affected during the Games this summer for Rio to see if these prices rise as hoteliers look to maximise spend by sports fans visiting during this time. The Q3 2016 results will certainly be telling.”

When comparing data from Q2 in 2016 with the same period in 2015, hotel prices across Europe have on the whole risen recording an almost 50% increase. The top European destinations that saw the highest percentage rise for average hotel room rates include Oslo (70%), Stockholm (15%) and Helsinki (14%).

Meanwhile, Istanbul has suffered the most with the highest decrease in hotel room rates, showing an almost 20% decline and an average night’s stay costing just £65. Moscow and Milan are not far behind, with average rates dropping 16% and 14% respectively.

Finally, looking at the international scene, hotel room rates increased across major capital cities globally compared to Q2 2015, reflecting an overall uplift across the global marketplace, despite recent terrorist events heightening safety concerns.

Unsurprisingly, New York retains its position as the most expensive city in the world with an average room per night setting the purse strings back by £204. However, New York could be one to watch with rates for the Big Apple having dropped 12% on last year’s Q2. San Francisco continues to record strong rates with an average room costing travellers £189, and Tokyo coming in third with hotel owners setting their rates at £156 per night.

Buenos Aires and Cape Town recorded the highest increases in average room rates for hotel stays. Rates in Buenos Aires have spiked by 20% to £98 per night, while travellers to Cape Town will be set back £101 – 15% higher than Q2 in 2015.

Despite price hikes globally, there are still bargains to be enjoyed. Jon said: “Those travelling on a budget should still look to Asia for its keenly priced capitals. In fact, Kuala Lumpur cost just £56 per night in Q2 2016, meaning travellers could book nearly four nights in Malaysia’s capital compared with just one night’s stay in New York.”

Top UK and Ireland Destinations 1-Star – 5-Star Hotels

Average room rate for hotel stays in British and Irish cities.
Comparison of average rates, based on non-cancelled bookings. Public and corporate bookings
Period: 01.04.-30.06.2016

GBP rate correct as of 25.07

Top European Destinations 1-Star – 5-Star Hotels

Average room rate for hotel stays in European cities.
Comparison of average rates, based on non-cancelled bookings. Public and corporate bookings.
Period: 01.04.-30.06.2016

GBP rate correct as of 25.07

Top International Destinations 1-Star – 5-Star Hotels

Average room rate for hotel stays in international cities.
Comparison of average rates, based on non-cancelled bookings. Public and corporate bookings.
Period: 01.04.-30.06.2016

GBP rate correct as of 25.07