Hotel rates around the world increased by 4 per cent in the first half of 2011, despite the fact the Middle East and Eastern Europe saw a decrease in rates, according to the latest hotel survey from Hogg Robinson Group (HRG).

Of the 50 cities surveyed, 33 reported a year-on-year increase in hotel rates with strong growth in Asia and a boost from other cities such as Istanbul, which saw rates increase 24 per cent; and Bangalore, with a 22 per cent increase. However, both Abu Dhabi and Dubai saw rates decrease 15 per cent and 7 per cent, respectively.

The strongest performing region was Asia Pacific, where average room rates rose by 7 per cent due to the concentration of hotel development and financial centres including Hong Kong and Singapore.

Price-wise, Moscow remained the most expensive of those surveyed, with an average room rate of £260.68 (up 1 per cent from the same period in 2010) and Dubai was the cheapest at £148.44. London saw rates increase by 2 per cent compared to last year – up from £153.85 to £156.82.

Over two-thirds of the cities surveyed reported hotel rate growth, compared with only one-quarter of cities last year, supporting signs of global recovery and pick up in business travel in recent months.

Stewart Harvey, group commercial director at HRG, said: “Yet again our survey indicates how important it is for clients to keep control of their hotel programmes and drive volumes to maximise returns. Despite the fact that many large companies have put in place travel restrictions and cost reductions, hotel rates in the majority of cities surveyed increased. Demand is driving the rate.

“We can expect hotel rates to continue to rise as more economies grow and business demand picks up. During this time it is critical for clients looking to minimise travel spend to work with us to negotiate fair hotel rates.”