London has dropped three places among the world’s most expensive travel destinations, according to HRG UK's half year hotel survey.

Despite the capital posting a steady 5% increase in average room rates in the six months to June to £152, it fell to ninth position in the survey following increased growth among other international destinations.

The UK on a whole saw a slight increase in average room rates, up 4.3% or £4.40 per night, which reflects the similar steady trend set in 2006.

Moscow continues to top the survey with the highest average hotel rates at £236, with the price of the average room having increased 7% compared with last year. 

Outside of Europe and North America, of the top 10, Hong Kong and Bangalore experienced a fall in average room rates. Significantly, Bangalore saw room rates drop 7% as the economy experienced a slowdown due to a plateau in its growth as a base for corporate outsourcing and international call centres. 

Dubai continued to experience growth in average room rates, having climbed four places to become the third most expensive city after Moscow and New York City.

Top 10 Most Expensive Cities Worldwide

Source: HRG

Industry data: TRI HotStats: Hotels 2007 Europe >> 

Revpar for Moscow hotels continues to rise >> 

London’s hoteliers enjoy strong growth during first two months of 2007 >> 

By Kerstin Kühn

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