Abu Dhabi hotels top world list for room rates growth

Abu Dhabi could soon become the most expensive city for business travellers, according to latest research.

The UAE capital was the only city to record a growth of 5 percent in real terms in a bi-annual hotel survey by Hogg Robinson Group (HRG), an international business travel company.
The average room rate grew from AED1,330 in 2008 to AED1,390 in 2009, pushing the city up the ranking from eighth place last year to second this year.

Moscow topped the list again this year despite a 14 percent drop in room rates between January and June, compared to the same period in 2008.

But, the firm said the Russian capital could soon lose its title because of the strength of Abu Dhabi, which only entered the top 10 expensive cities for hotel rates list last year.
The survey found that in Middle Eastern cities demand continues to outstrip supply, except in Dubai which saw a 24 percent drop in room rates - one of the largest decreases in the survey.
The emirate has continued to suffer from a fall in demand from the banking and finance sector, coupled with an exodus of expatriates and migrant workers due to the financial downturn.
"The latest figures suggest that the industry has some way to go before rates stabilise," said Margaret Bowler, director of global hotel relations at HRG.

"Many hoteliers do not want to throw away their share of the market with significant price cuts so they are taking a sensible long-term strategy to hold out for rates at the expense of lower occupancy levels."