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Budapest leading the European hotel rate rise

Hotstats reveals Hungarian capital's growing meetings reputation has sparked an 18 per cent jump in hotel prices

Pictured: Budapest hotel prices went up 17.6 per cent in the month of June, hitting an average of £161

European hotel prices rose almost 5 per cent in the month of June, with Budapest leading the way thanks to its growing reputation as a meetings and events destination.

The latest findings, revealed in Hotstats' June report, show occupancy across Europe fell 0.4 per cent year-on-year, but this was offset by a 4.9 per cent increase in average room rate to €180 (£161).

The report revealed that Budapest saw average hotel rates increase 17.6 per cent to €142.41 (£127) in the month of June, as occupancy hit 85.3 per cent. It said while the Hungarian capital experienced a "significant" uplift in leisure tourists, the month's results was fuelled by business visitors, reflected in rises in both corporate (+25.9 per cent) and residential conference (13 per cent) segments.

Pablo Alonso, CEO of HotStats, said: "Hotels in Europe have had a good first half of the year and consumer confidence will be buoyed with the IMF recently upgrading its 2017 growth projections for many EU countries, including France, Germany, Italy, and Spain, on the back of Q1 growth exceeding expectations."   

The report also said Paris hotels were "getting back on track" after the spate of terror attacks and flooding in 2016, with gross profits (GOPPAR) increasing 8.1 per cent in June while it hosted the biennial Paris Air Show.

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