Spanish hotel rates plunge

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If you're tempted by the idea of a city break in Spain, book now because hotel prices are falling fast.

The Sunday Times reports that hoteliers are suffering because many Spanish people can no longer afford to travel.

As a result, the biggest bargains are to be found in four- and five-star hotels, where some room rates are around £30 a night, which is lower than a night in a hostel.

Even in July, a night at the four-star Beatriz in Toledo is just £42, which is £6 less than a neighbouring one-star hotel.

In Valencia, four-star properties cost an average of £45 per night, with five-star hotels charging around £65.

Ted Wake of Kirker Holidays told the Sunday Times: "Numerous hotels, especially in the south, have been dependent on rich people coming from Madrid and the north for the summer. These clients aren't booking this year, and the hotels have decided to make dramatic cuts in order to generate turnover."

Flights are also affordable, with the average price of a return flight from London to Madrid coming in at £84 and Valencia at £104.

However, the cost of package deals to coastal areas hasn't dropped as foreign demand is still strong.

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