Dubai is famous for its ultra-luxury hotels, but according to a new report, it’s the last place budget travelers should stay at. The latest World Hotel Index reveals the most expensive markets for hotel rooms, with Geneva, Dubai and Kuwait City occupying the top three spots in the ranking.
After the announcement of Dubai’s successful bid for hosting Expo 2020, the emirate focused on expanding its tourism and hospitality sectors. Authorities said that by 2020, the city aims to attract annually 20 million visitors, an ambitious, yet realistic goal, given Dubai’s rising popularity among business and leisure travelers. However, it seems that the major target market for the hospitality sector remains the rich, high-end consumer, as large part of the new hotels that open every month are 4 and 5-star. The prices also confirm that – according to the new World Hotel Index, compiled by Bloomberg, Dubai is the second priciest city in the world for hotel rooms. While in Geneva, which currently holds the first position, the average cost for a night is $308, the room in Dubai is $273, followed by $253 lodging in Kuwait City. Zurich with a room at $250 and Miami with average stay at $250 round up the top five.
Top 10 Most Expensive Global Cities for Hotel Rooms
- Geneva, Switzerland
- Dubai, UAE
- Kuwait City, Kuwait
- Zurich, Switzerland
- Miami, US
- Hong Kong, China
- Edinburgh, Scotland
- London, UK
- Singapore, Singapore
- New York, US
The index was compiled based on the average daily cost of hotels, regardless of the star rating. It also looked at prices for two adults in a double-occupancy room from May 1 to May 9, 2014. According to analysts, the room rates are mostly influenced by the general cost of real estate, as well as by the availability of hotel rooms. For example, Geneva has a limited amount of developable land, which makes it also extremely expensive. In addition, there aren’t a lot of lower-end rooms that could balance the average cost. As a result, Geneva is 32 percent more expensive than New York and London when it comes to room rates. And a night in the city is approximately five times pricier than a night in Hanoi, which is at the bottom of the list, at No.106 and average cost at $62.
The list ranks a total of 106 global cities, which meet several criteria – they need to among the UN’s 30 largest Urban Agglomerations; they need to be the headquarters of at least 10 public companies with $1 billion in market capitalization, in finance, health care and IT; they need to have at least 50 3-star hotels or above, and so on. Looking at the top cities for five-star hotels, Geneva also ranks first, with an average cost of $614 per night. It is followed by Los Angeles, Tokyo, Milan and Hong Kong. In comparison, Dubai is one of the average cities with a luxury 5-star accommodation going for $304.
