Average room rates fall by up to 20% in UK's major cities

Cardiff's hotels experienced the largest drop of 20 per cent to £95 according to figures gathered by HRS with Edinburgh's prices falling by 17 per cent to £124 and Bristol by 16 per cent to £103. 

While London remained the most expensive city to stay in in the UK with an average night's stay of £153, the ARR rate was found to have dropped 14 per cent on the same quarter in the previous year. 

Andy Besent, managing director of HRS (UK and Ireland) said the company's data had shown that rates had actually dropped over the last two quarters in major UK cities. 

“Last quarter’s findings showed that quarter two rates had fallen on average by 7 per cent, but for quarter three rates have fallen even further by an average of nearly 14 per cent. It’s too early to say whether or not this is due to the outcome of the Brexit vote, but we are watching to see if this pattern continues.  Whilst it’s no doubt concerning for the hotel industry, the fall in prices should at least make the UK a more attractive and cost effective destination for foreign business and leisure travellers in the months to come.”  

Conversely, room rates at hotels in the majority of key cities in Europe saw a steady rate rise in quarter three against the same period in 2015. 

“Average room rates are generally holding strong in Europe and internationally, especially when comparing these figures against the UK’s performance," said Besent. "Looking at average room rates for locations where acts of terrorism have taken place over the last year such as Paris and Brussels, the drops have been relatively marginal which shows resilience from these important business hubs." 

The data backs up claims made by the British Hospitality Association (BHA) earlier this week​ that the UK had seen no 'tourism surge' post-Brexit. 

While some hotels received a surge in bookings from markets such as the US and China following Brexit, the benefits seem to have been short-lived.