|Hotel Metropol, Moscow|
The Russian capital is also home to the world's wealthiest expats, with over a third of them earning in excess of £160,000 ($259,486) per annum.
Of the 50 cities surveyed by international corporate services company Hogg Robinson Group (HRG), 33 reported a four per cent year on year increase in hotel rates, with particularly strong growth in Asia.
The boom in hotel development and the flourishing financial centres of Hong Kong and Singapore are believed to be behind the seven per cent rise.
At £196 ($318) per night, Istanbul achieved the highest overall increase in hotel rate of 37 per cent, due to the growing interest in the city as a business destination coupled with an inclination among business travellers, conscious of Istanbul's security issues, to stay in five-star accommodation.
Margaret Bowler, director of global hotel relations at HRG, said “The shift from Europe to Asia in hotel rate growth is significant in that it demonstrates changing business priorities. The rates demonstrate that demand has increased for travel to emerging regions as a result of the need to do business and that travellers are willing to pay higher hotel costs during their stay."
Cardiff, Glasgow and Liverpool offered the cheapest rates of approximately £80 ($130) per night, despite the boost from the January VAT increase. The weakest performing region was Eastern Europe. It suffered a 6.6 per cent decrease which could have been worse had it not been for Bucharest and Kiev reporting a four per cent rate increase.
Other notable decreases were in Middle Eastern countries such as Abu Dhabi (minus 15 per cent) and Dubai (minus seven per cent), where hotel supply outstripped demand.
Ms Bowler added: "Key international cities like London, New York and Paris reported hotel rate increases, demonstrating buoyancy and resilience. London, in particular, is expected to flourish next year as it hosts the Olympics.
“Overall, our research shows that global hotel rates are increasing and have been exhibiting signs of growth. Looking ahead, we anticipate that hotel rates will continue to rise if the economy improves.”