Hotels in New York City were only able to raise rates 1% last year, compared with 15% in Nashville, the highest increase among the top 50 markets. If anyone needed proof that the hotel business is local, the numbers might prove it. Or they might not. The industry’s problem in New York may not just be a fluke. New York hotels rooms are extremely expensive.

According to Hotels.com, the average price of a hotel room among the top 50 markets was $137 a night. The hotel room shopping site claims the average increase across those markets was 7% last year. The average price of a hotel room in New York City last year was $271, nearly double the average.

Cities where hotel rooms are cheap tended to do better in terms of their ability to raise rates. The price of a hotel room in Denver rose 11% to $136. The price of a hotel room in St. Louis rose 10% to $130. St. Louis is not much of a vacation spot, so the increase might be due to business travelers. However, business travelers may not go there either. So, the increase could be due to a low supply of rooms. Hotels.com does not say much about the factor of supply, at least not in this research. The price of a room in Columbus rose 9% to $117. Lack of visitors, or lack of hotel rooms? Hotel room prices in Indianapolis were up 8% to $128. Same question. Why such a bargain?

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The cities with large populations tend to have problems similar to New York’s. In Chicago, the price rose only 3% to $164. Washington, only 2% to $160. In Philadelphia, up 2% to $151. Does the size of a city affect hotel room prices? There is no way to tell, at least from this research. Does the price of a hotel room cap the ability to raise prices? No way to tell.

Nice report, no conclusions.

Methodology: The HPI is a biannual report that looks at hotel prices in cities all around the world. The data is based on bookings made through the Hotels.com website and the prices listed are the actual prices paid, not advertised rates.

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