What City Has the Third Most Expensive Hotel Rooms in the World?

It’s not your imagination. Hotel rates in New York City have gone up.

In fact, they’re third highest in the world – just behind Moscow (priciest for the ninth year) and Lagos. So says the newly released hotel survey from Hogg Robinson Group (HRG), which compared rates for 55 international cities. The New York average is $341.59 a night, up 4 percent from 2011. That uptick reflects confidence in the financial sector, a good thing until you have to swipe your credit card.

Rounding out the international Top Ten were Hong Kong, Zurich, Geneva, Rio de Janeiro, Paris, Sydney and Stockholm. San Francisco, with the second highest hotel rates in the U.S., came in at 11.

Bargain hunters should consider vacationing in Edinburgh, Belfast or Hyderabad, which posted the lowest hotel rates in the group.

Rio de Janeiro, Sao Paolo, Tokyo, San Francisco and Mexico City posted the biggest price jumps, ranging from 19 percent for Rio to 9 percent for Mexico City. (San Francisco rates shot up from $274.98 in 2011 to $302.39 in 2012.)

A boom in business in these cities was cited as well as a lack of new hotel openings in Brazil, Mexico City and San Francisco.

Washington, D.C., in contrast, posted the biggest price drop, from $323.10 to $279.08 – a 14 percent fall. No doubt those averages shot up during the inauguration.

Room rates also dropped notably in Bangalore, Abu Dhabi, Istanbul and New Delhi. A slowdown in the Indian economy prompted by weak exports prompted the multi-city drop. The report also cited an over supply of hotels. In addition, corporations are encouraging travelers to long-stay serviced apartments, a price savvy alternative.