Despite the sporadic nature of the global economic recovery, the fact that economies nonetheless are growing is borne out by the latest HRG Interim Hotel Survey for the period January to June 2015. The bi-annual survey shows an increase in the number of hotel rooms booked by the company in compared to the same period in 2014.
Now in its 22nd year, the survey reports that 31 of the top cities experienced an increase in average room rate with only 15 cities falling and five remaining static. The survey also reveals that for the twelfth year running Moscow remains the most expensive city for business travel, with a 6.07 percent increase in ARR compared to last year.
The slowdown in the oil industry is having an impact in markets that are reliant on the energy sector. For the first time in many years hotels in both Aberdeen and Houston are having to significantly discount room rates to maintain demand On the other hand, conventions and meetings business continues to have a positive impact on ARR, with Berlin, Boston, Chicago, Frankfurt and San Francisco all posting increases in ARR as a result
The report concludes that influencers on ARR changes continue to include oversupply, exchange rate movements, economic and political sanctions.