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Newcastle endures hotel price slump

Newcastle has edged above Manchester to become the fourth most expensive UK business destination in terms of hotel rates.

In the week that hotelier InterContinental Group announced plans for a £20m development on Tyneside, new figures have revealed that average room rates for corporate visitors to Newcastle have held relatively firm as other areas have plummeted.

According to business travel agency HRG room rates in Newcastle fell 6% to £95.52 last year, while Belfast endured an 20% fall, Liverpool 15% and Aberdeen 11%.

The top five destinations in terms of price were London (£151.45), Aberdeen (£117.95), Heathrow Airport (£101.61), followed by Newcastle (£95.52) then Manchester (£95.17).

Margaret Bowler, HRG’s director of global hotel relations, said prices in Newcastle had not fallen as steeply as some other areas because of it not seen as many new developments as places like Manchester, so rooms were more of a commodity.

However, this could change if InterContinental’s ambitious plans for Newcastle city centre are realized.

Ms Bowler said: “Everybody believes that 2010 won’t be as flat as 2009 but we still haven’t seen growth. Until we reach that point it’s then that we will know from a hotel point of view whether we are over the worst of it - 2010 is about sensible pricing.”

Earlier this week InterContinental revealed the blueprints for a new four-star, 148-bed boutique hotel on Fenkle Street, next to The Assembly Rooms, under the US company’s Hotel Indigo brand.

This was posted in Bdaily's Members' News section by Ruth Mitchell .