February 01, 2013

HRG: Corporate hotel rates increase in most major cities

In North America, hotels approached negotiation season with a very bullish attitude, leading to high rate rises, according to HRG. Hotels are also paying more attention to cancellation deadlines, which is placing a further squeeze on rates.

Moscow, Lagos and New York are the world's most expensive cities for corporate hotel programs, according to a biannual report released Thursday by Hogg Robinson Group. The travel management company uses a combination of actual room nights booked by HRG clients and industry intelligence to create the report.

The Russian capital has been the priciest city for nine years now, and 2012 corporate hotel rates in local currency increased by 5 percent year over year. In New York, rates increased by 2 percent. Rates were flat in the Nigerian city of Lagos, where some new properties opened but "most corporate visitors use five-star hotels," according to HRG, as "security remains a major concern for business travelers in Africa, especially in Lagos."

The world's largest corporate hotel rate percentage increases occurred in Rio de Janeiro (19 percent) and São Paulo (15 percent), although currency fluctuations negated the overall effect on international corporate travelers. Hotel room rates throughout Latin America have "increased significantly as business travelers turn their attentions to the lucrative opportunities in the region," according to HRG.

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