The average global price of a hotel room dropped 12% in the last quarter of 2008, compared with the same period in 2007.

Mumbai had the biggest fall in room rates because of the 26/11 terrorist attack in the city. Room rates here fell 41%.

The average price per room for an overnight stay during October to December in 2008 in Mumbai was $186, against $318 in the corresponding period in 2007, according to Hotels.com.

New Delhi featured in the list of Asian cities recording moderate drops in hotel prices, with a 4% decline, along with Bangkok (3%), Kuala Lumpur (5%) and Tokyo (6%).

According to the Hotel Price Index, hotel prices in North America fell by the greatest extent--down 12%--with Europe dropping 10% in Q4 2008 compared with the year before. On average hotel prices today are only 1% higher than they were five years ago, it said.

The Asia-Pacific region recorded its first year-on-year drop in hotel room prices since 2004.

This drop was comparatively small--only 2%. But there were sharp drops in many large Asian cities including Hong Kong, Singapore, Beijing and Mumbai.

Guy Godet, general manager, JW Marriott Hotel in Mumbai, told Mint that the average room rates of hotels in India has gone down by 15% and the room occupancy down by 30% in the backdrop of economic slowdown. Marriott International Inc owns JW Marriott Hotel.

Source: Live Mint Hotel Rooms Turn Cheaper In Downturn