Revealed: The surprising destinations with the best value hotels – according to price per square metre

There are plenty of ways to measure the value of a hotel, but if you’re looking simply at size, Prague comes out on top within Europe and the Balinese resort of Kuta wins overall.

That’s according to new research into the cost-per-square-metre of hotels (3&4-star only) in the most popular destinations around the world for British travellers.

Kayak, the price comparison website, compared the average nightly rates of these hotels, an how much space they offer in a typical room, and came out with a few surprises.

Not surprising was the fact that New York hotels charge the highest prices per square metre (￡7.59 per night on average), but the revelation that Dubai’s hotels are actually four times cheaper when it comes to space (￡1.80/sq m) is interesting.

Edinburgh proved to be the most expensive destination for 3&4-star hotels in Europe (￡6.56/sq m), followed by Paris and Dublin; with Budapest scoring second cheapest after Prague (￡2.25/sq m), leaving Berlin in third place.

Europe | The cost of 3&4-star hotels per square metre

Worldwide | The cost of holiday rentals per square metre

The numbers were also crunched for the average nightly rates of holiday rentals (to accomodate two people) per square metre in the same destinations. Again, Budapest and Prague offered the best value in Europe, both with prices under ￡1.50/sq m; while Amsterdam proved the most expensive (￡5.34), over four times the price.

As to whether hotels or rentals offer more space for your money, this varies according to destination. Broadly speaking, rentals offer greater value, which makes sense given the overheads that hotels have.

In Budapest, for example, visitors can enjoy 65 per cent more space in a rental than a hotel, for 17 per cent less money, and in Rome a rental the same size as a hotel costs 30 per cent less.

Rentals in Kuta, Bali, average at 200 square metres in size (six times larger than those in New York) and still cost ￡67 less per night than hotels. Renting an abode in Tokyo is also a good shout, providing nearly twice as much space as the average 3- or 4-star hotel, for 32 per cent less per night.

Worldwide | The cost of 3&4-star hotels per square metre

Worldwide | The cost of holiday rentals per square metre

In Dublin and Barcelona, the average hotel costs up to 30 per cent less than a rental, but offers half the size. In Marrakech, the average rental costs twice as much as a hotel but is also five times as large.

If space isn't your top concern, there are are other ways to establish value for money. The Post Office recently compared the cost of hotels, restaurants and other common holiday purchases in Europe's most popular city break destinations to arrive at a list of the cheapest travel options overall.

Top of the list was Vilnius in Lithuania, where a night in a 3-star hotel averages at just ￡37 per night, followed by Latvia's capital city of Riga, Warsaw in Poland, Paphos in Cyprus and Krakow in Poland.