Mumbai is one of the fastest growing hotel markets in the world, according to a business travel firm Hogg Robinson Group (HRG)
HRG says hotel rates in the city have increased 30% over the last six months, with rooms now averaging £147.55 a night.
However, elsewhere in India, Bangalore saw a decrease in room rates of 7%, due to slowdown in its economic growth.
Moscow remained the most expensive city with room rates now averaging £236.06 a night, up from £220.57 in 2006.
Across Europe, Barcelona saw the most growth, with an increase of 18%, followed by Berlin (17%) and Aberdeen (12%).
Worldwide, Africa was the only region to experience a decline in average room rates.