Moscow has extended its lead as the most expensive hotel market in the world with average room rates nearing £250 a night, according to corporate services supplier Hogg Robinson Group.
Although growth in pricing was robust in most major cities, signs are emerging that the market could be reaching a peak.
HRG director of global hotel relations Margaret Bowler said: “We know the market will pop at some point. Will it be 2008? January was softer, but so far a lot of the hotel groups are sticking to their pricing rather than reflecting occupancy rates.”
Despite the widespread rise in room rates – London was up 4pc at £154 per night – markets such as Liverpool and Bristol, Bangalore in India and Philadelphia in the US saw a slight fall in pricing. According to HRG, these were explained by significant increases in supply and a maturing local market.
The hotel market in Mumbai was one of the fastest growing, with room rates up 36pc over the year to £160. The increase pushed the city from 28th most expensive to seventh.
London remains relatively cheap at 10th in the list. New York (£192), Paris (£171) and Dubai (£165) are all more expensive.
Ms Bowler said: “The hotel industry has shown a strong performance throughout 2007 – although not to the levels of 2006.”