Hotel Room Rates Slide Despite Olympics

Hotel prices slipped by 4% in 2012 as the year's wet weather hit bookings, research by Hotels.com has revealed.

Guests paid on average £100 a night according to the company's Hotel Price Index, which is based on the amount paid by those booking through the website.

In the capital, rates fell 3% to an average of £126 - despite concerns that the Diamond Jubilee and Olympic Games would push up prices.

Hotels in St Andrews were the priciest at £135 on average, although this was 12% lower than the town's rate of £154 in 2011.

Prices also fell by more than 10% in Jersey and Perth, and were down by 9% in Scarborough

Hotels.com said 2012's wet weather affected the number of visitors to the UK, with seaside resorts especially badly hit.

After St Andrews and London, the location with the highest rates last year was Windsor at £114, although this was down 4% on the year before.

The location with the cheapest rooms was Coventry, with an average rate of £50 per night - exactly half the national average.

A Hotels.com spokesperson said that although London's profile was boosted by the summer's events, it did not translate to a rise in prices.

"The number of visitors during the Games did not meet expectations and hotels lowered their prices in subsequent months to stimulate demand," they said.

"This price still placed the capital at number two in the table and the city will be one to watch in 2013 to see whether its moment in the global spotlight has an impact on its average hotel prices going forward, particularly as the royal birth keeps the country in the public eye."

Although flat or falling prices were recorded across the majority of the UK, some areas did buck the trend.

The Titanic Centenary helped push room rates up 10% in Belfast, and Aberdeen - which saw a 9% rise - was boosted by those visiting the city on business in the energy sector.

Marriott's boss said its Moxy hotel rooms would be modern and stylish

The research comes as Marriott International reveals plans to launch a budget hotel chain called Moxy.

Its president and chief executive, Arne Sorenson, told Sky News the company planned to "go after" its rivals in the low-cost sector.

"As we look across this space, what we see is a couple of million rooms in the economy space which have been sort of under-demolished - they're past their prime," he said.

"We think there's an opportunity to bring something new; that has a sense of style, which will perform well in these markets."

He said Moxy hotels would have better bedrooms and bathrooms than its competitors, despite a room size of around 17 square metres.

"It's going to be modern and it's going to be current in terms of its design," he added.

"And I think if you bring these things to this space, we ought to perform really well against the hotels that are already in this segment in Europe."

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