Business travelers fork out more to stay near the City, study shows
Business travelers were still prepared to pay more to stay near Canary Wharf and the Square Mile despite increased uncertainty ahead of the EU referendum.
A bi-annual report by HRG — the global travel company — showed that average room rates for business travelers leapt in the Docklands and the City by 6.9 per cent to £178 and 3.5 per cent to £189 respectively.
Both areas are home to some of the world’s biggest investment banks, law firms and other professional services companies. But confidence wavered in the run-up to the Brexit vote amid concern over whether London would hold onto its preeminence as a financial centre if Britain voted to leave its biggest trading partner.
Read more: Brexit fundamentalists have destroyed the Tories' pro-business reputation
This came as average room rates in the more tourist-centric West End and Central London fell 0.5 per cent to £179. These hotels are located nearby popular attractions such as Chinatown, London’s theatre area and popular shopping destinations such as Oxford Street.
"London growth for the first six months is lower than the 3.09 per cent seen during 2015.
"A weaker start to the year in corporate demand and uncertainty around the EU referendum has seen overall demand increase but not to the extent many hotel groups were predicting."
Elsewhere, average room rates in the once oil-rich city of Aberdeen plummeted 21.14 per cent to £97.31 as it reeled from the crude price rout which start just over two years ago.
Read more: Brexit threatens London’s world beating tourism industry
"Aberdeen continues to feel the effect of the downturn in the oil industry resulting in less demand," HRG said.
"Together with several new openings in 2015, this means hotels are fighting to retain a shrinking pool of business.
"As a result the average room rate saw an even sharper decline in the last six months than in 2015 as a whole."