The big change emerges in HRG's twice-yearly hotel report, published today. The report reveals that average rates rose in most cities when 2008 is considered in its entirety. However, quarter-by-quarter analysis shows rates steadying and in some cases falling in the fourth quarter. Major cities that registered fourth-quarter declines included Amsterdam, Hong Kong, New York and Paris. London grew in October and November but fell in September and December.

HRG director of global hotel relations Margaret Bowler warned that buyers should not expect dramatic rate reductions even in cities where occupancy is falling. "Contrary to what many may expect, hotels are not slashing prices," she said. "Instead, the majority are adopting a sensible long-term strategy to offer value rather than significant price cuts to maintain their share of the market."

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Get the full HRG Report at Hogg Robinson Group (HRG)