Higher-tier hotel rates worldwide have increased at a much faster rate than those in budget sectors, and major cities around the world continue to show double-digit growth in room rates, according to a hotel survey released today by HRG.

The survey, based on industry figures and booking and rate data mined from HRG U.K. clients during the first nine months of this year, showed that room rates increased proportionally to the star rating of the hotel. Five-star property rates were up 15.2 percent over 2005, compared with a 4.8 percent increase for budget properties.

"The budget sector has witnessed aggressive expansion with a resulting increase in rooms available and competitive pricing policies designed to maintain marketshare and secure new customers," Margaret Bowler, HRG U.K.'s general manager of hotel relations, said in the survey.

Regionally, Asia/Pacific showed the highest increase in room rates, up by almost 20 percent, because of rapid growth in India, Singapore, Hong Kong and Tokyo, according to the survey. Eastern Europe also showed a strong growth rate of 18 percent.

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