Hotel rates rise across the UK's major regional cities

By Sophie Witts contact

- Last updated on GMT

ARR rose across the UK's major cities in 2014
ARR rose across the UK's major cities in 2014

Related tags: Hotel

Hotels in the UK’s major cities saw an increase in ARR last year, though rates in London fell after a strong start to 2014.

The capital experienced a 0.72 per cent drop in ARR year on year, despite witnessing 5 per cent growth in the first half of 2014, according to a survey by HRG.

Further analysis found there was substantial movement from upscale properties (down 5.17 per cent ARR) to midscale (up 2.55 per cent).

Liverpool experienced the greatest ARR growth in England out of the major cities surveyed, rising 4.55 per cent to £88.32.

Manchester followed with a 2.75 per cent growth in ARR to £93.97, up from £91.45.

Newcastle saw a more modest increase of 0.34 per cent, to an ARR of £89.29.

Room rates at Heathrow dropped 0.75 per cent to £95.16.


Aberdeen saw a 9.61 per cent increase in ARR, though trouble in the North Sea oil and gas sector meant rates were down on the 11 per cent growth seen in the first half of the year.

Edinburgh experienced a 2.29 per cent growth in ARR to £94.06, while increased corporate demand and the effects of the Commonwealth Games gave Glasgow a 5.66 per cent boost to an ARR of £91.82.

Continuing uncertainty in the oil and gas industry has since led to a fall in occupancy across the Scottish cities​ in January 2015.

Wales and Northern Ireland

Cardiff reported ARR growth of 2.13 per cent to £78.76, up from £77.12 in 2013.

In Belfast the rates rose to £88.83, up 2.02 per cent from 2013.

International Growth

Moscow remained the most expensive destination for the 11th year running, despite an almost 4 per cent fall in ARR to £249.11.

Dublin continued to see modest growth in rates, up 5.3 per cent to £91.43, as the effects of the financial crisis eased and demand returned.

The Middle East, West Africa and Asia all saw ARR growth, while Europe, The Americas and Africa saw ARR move backwards. Cities within each region continued to see large disparity in terms of ARR movement, reinforcing the trend of increasing “megacity” performance​.

Margerat Bowler, director of global hotel relations at HRG, said: “The market is incredibly varied with regional and even national trends continuing to be replaced by micro trends effecting individual city performance. At the same time, Hotel Groups are continuing to focus on increasing their average rates across the board.”

The figures were released as part of HRG’s biannual hotel survey, which examines hotel room rates in key business destinations across the world to provide an insight into global business travel behaviours.

Related topics: Business, Hotels, Trends & Reports

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