Claudine Attard (CPA, FCCA)

As hotel owners and operators plan for 2026, one question keeps coming up – how do my room rates compare to my competitors, and are they positioned correctly for the guests I want to attract?

Accommodation rates are no longer just a reflection of star rating or location.

They are the outcome of multiple, interlinked factors: guest profile, booking patterns, service delivery, experience, and how well a hotel understands its true competitive environment.

This is where meaningful benchmarking becomes essential.

Same island. Same star rating. Very different rates.

The table below provides an indicative overview of accommodation rates for 2026 across a selected sample of four-star hotels in Malta, split by location.

All rates shown are:

• Net of 7% VAT
• Standard double / twin room
• 2 adults
• Bed & Breakfast basis
• Period covered: 1 January, 2026 to 30 September, 2026

The purpose of this overview is not to rank hotels, but to demonstrate how materially rates differ between locations – and why ‘like-for-like’ comparison is critical.

Location	Ǫ1 ARR (€)	Ǫ2 ARR (€)	Ǫ3 ARR (€)	Jan–Sep Avg ARR (€)
Mellieha	74.49	129.76	168.20	124.15
St Paul’s Bay / Ǫawra	88.36	153.76	179.56	140.56
Sliema / St Julian’s	101.06	152.32	171.77	141.72

(Rates are indicative only and based on publicly available website data.)

Why this matters more than ever

What this clearly shows is that location alone creates materially different rate positioning, even within the same star category and on a small island like Malta.

A four-star hotel in Mellieħa, for example, naturally operates in a different demand environment to a four-star hotel in Sliema or St Julian’s. Differences in guest profile, length of stay, travel purpose, seasonality, and weekend versus weekday demand all influence achievable rates.

This does not mean one location is ‘better’ than another – but it does mean that benchmarking needs to reflect these structural differences.

Comparing performance across locations without adjusting for these factors can blur the real picture and lead to conclusions that are not fully actionable.

Effective benchmarking therefore goes beyond headline averages and focuses on comparable hotels, comparable locations, and comparable accommodation concepts.

The deeper questions behind pricing

Room rates should not be set solely by reference to competitors’ prices or a target return.

They should also reflect the value delivered, the experience offered, and the expectations of the specific guest profile being targeted.

• Who is my core guest, and how is that evolving?
• What motivates them to choose my hotel over alternatives?
• What experience am I genuinely delivering at this price point?

Pricing is not just about aesthetics or views

A higher rate is not justified by location or aesthetics alone. Guests increasingly compare experience, not just rooms.

Key questions every owner and operator should be asking:

• What level of service does my hotel delive – consistently?
• What experience does a guest actually walk away with?
• What added value am I offering that my competitors are not?
• If I am charging a premium, what is the guest paying extra for?

This goes beyond refurbishments and sea views. It comes down to people, service culture, and attention to detail.

A cultural reset in hospitality

Malta’s hospitality sector has long been known for its warmth, personal attention, and genuine care — a culture where nothing was too much trouble.

That spirit is part of what made the destination attractive well beyond its climate, beaches, and heritage.

In today’s increasingly data-driven, high-occupancy environment, there is a real risk that guests become numbers rather than people.

This is where hotels have an opportunity to differentiate once again.

With improving connectivity to the US market and a national ambition to attract higher- spending guests, the focus should not rest solely on increasing ADR and prices.

What matters just as much is how added value is perceived through the eyes of the guest.

Ultimately, regardless of market segment, every guest is looking for value for money – not just a higher price tag.

The guest experience starts with the first greeting, the first smile, the first interaction.

Staff – regardless of nationality – are at the forefront of that experience. Investment in training, empowerment, and workplace satisfaction feeds directly into perceived value.

Often, the most powerful differentiators are also the simplest: a personal welcome, a thoughtful gesture on arrival, or small service touches that cost little but leave a lasting impression.

Mystery guest programmes, operational reviews, and experience audits can be effective tools to identify where these opportunities exist.

Benchmarking done properly

The benchmarking exercise behind this overview involved an original selection of 21 four-star hotels across Mellieħa, Ǫawra/St Paul’s Bay, and Sliema/St Julian’s.

• Two hotels were excluded due to operating exclusively on an All-Inclusive basis (requiring a different analytical approach)
• Three hotels were excluded due to lack of publicly available rates
• Final sample: 16 four-star hotels

The analysis highlights the importance of:

• Comparing like with like
• Splitting benchmarking by location
• And understanding behavioural trends, such as:
  • Weekend-driven demand in northern areas,
  • More dynamic, day-by-day pricing in central locations driven by short stays and business travel.

These insights are only visible when benchmarking is done correctly.

Pricing with intent, not just comparison

Setting the right room rate is not simply a question of matching competitors’ prices, covering costs, or achieving a target return.

There may be value already being delivered that is not fully reflected in the rate, or conversely, value gaps that – if addressed – could justify stronger pricing and closer alignment with the market.

Effective pricing comes from a deeper understanding of:

• Who you are truly competing with
• Why guests choose your hotel over alternatives
• Whether your pricing accurately reflects the experience and value you deliver

When rates are aligned with guest expectations, service quality, and operational performance, pricing becomes a strategic tool rather than a reactive one.

Claudine Attard may be contacted on ca@caccounting.eu.