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The World's Most Expensive Hotel Rooms: Moscow

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Moscow has been named the world's most expensive city for hotel rooms for the eighth year in a row, according to a survey carried out by a travel management company.


In a survey of 50 major cities, Moscow's room rates averaged out at $387 a night confirming what travellers to Russia's capital have known for years.


The Hogg robinson Group survey found Moscow hotel rooms were almost 20 percent more expensive than the next most expensive city. Other major findings include:


  • Lagos emerged as the second most expensive destination due to the high volume of inbound business travel connected with the oil industry.  Travellers to Lagos are also conscious of the city’s well-documented security issues and are more inclined to stay in five-star accommodation.
  • Mexico City reported the highest increase in room rates at 30% in local currency, as growth in demand, coupled with a lack of new openings, drove an aggressive increase in average achieved rates.  Across the wider Latin American region, Rio de Janeiro and Sao Paulo reported rate increases of 15% and 23% respectively.
  • Room rates in Tokyo recovered by 4% as the region increased following the earthquake and tsunami in 2011.  Dubai also saw room rates rise as business travellers returned to the region following the upheaval of the Arab Spring.
  • Hotel rates in India were driven down by the country’s economic slowdown and lack of capital for new investments.  Mumbai showed an average room rate decrease of 7% and Bangalore 21% in local currency.
  • The financial crisis affected average room rates across the Eurozone leading to rate decreases in key European cities, notably Barcelona which saw rates fall by 22% in local currency.  Madrid and Dublin also reported 2% and 6% rate decrease respectively.
  • The UK saw a 2% room rate increase, primarily driven by high rates in London and a select number of regional cities, including Liverpool which saw room rates jump by 8% following increased economic activity in the region.
  • Key destinations in the USA, including New York, San Francisco all saw average hotel room rates rise in the first half of 2012, as business activity increased in line with economic performance.




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