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London hotels in top spot on Big Mac price scale

Jessica Gunn
Thursday 10 July 2003 12:27

Big Macs have become worldwide recognised currency with the news that a good night's sleep in a London hotel costs the same as 110 Big Macs, more than double the number of burgers it would take for local residents in Sydney, Toronto or San Francisco.

Jones Lang LaSalle Hotels' inaugural Hotel Affordability Index compares the average daily rate of a city's hotel market with the cost of a Big Mac in the local currency.

This year's results rate London hotels as the most expensive, with Paris and Milan in second and third places at 84 burgers and 83.2 burgers respectively. Hotels in New York are close to half the price of London rooms at only 65 burgers.

"In light of the outbreak of Sars, war in Iraq and the ongoing threat of terrorism, it's likely hotels will be increasingly reliant on domestic demand," said Nick Marsh, chief executive officer for Europe at LaSalle. "The Big Mac index provides a key measure as to the affordability of accommodation for local guests in the cities covered. A high ranking highlights the city as an investment hotspot, while also indicating a greater likelihood of achieving a high selling price."

According to the report, Europe in particular has enjoyed growth in the number of domestic visitors, who are opting to stay closer to home following the advent of low-cost airlines.

In general, the more international cities achieve the highest room rates because of high corporate and leisure demand. Hong Kong and New York, the most expensive cities outside Europe, buck this trend with international tourists accounting for only 16% and 16.6% respectively of total bednights in 2002.

  • McDonald's has stepped up its bid to improve its image by linking up with Coca-Cola's "Step With it!" campaign to get families to exercise more.

    Last month McDonald's called for its suppliers worldwide to phase out the use of animal growth-promoting antibiotics. Now the chain is linking up with a campaign designed to tackle the growing obesity problem in the USA which, like the UK's, is blamed largely on fast food and lack of exercise.

    As part of the fitness campaign guidelines will be issued to help people increase their physical activity, with the use of pedometers to track the number of steps taken in a typical day. The campaign will be trialled in the USA this autumn, and could be rolled out globally next year.

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