Dundee budget hotels charging Â£400 a night to cash in on The Open

Dundee's 'budget' hotels are hiking their prices to more than 400 pounds a night across The Open

Dundee city centre Hampton by Hilton is increasing the cost by 360 per cent, from £89 to £409, while the Queen’s Hotel jumps from £53 to £306.

More than 170,000 people are expected to come to the area as the world’s top golfers compete at Carnoustie from 19 to 22 July.

David Groundwater, of the Federation of Small Businesses, said: “We’d suggest that accommodation providers – especially the big chain hotels – should exercise a degree of restraint when setting their prices.”

Tourists visiting Tayside during the Open will be forced to pay hundreds of pounds for so-called budget hotels.

Sleeperz, which opened last week, changed its website after mandatory two-night stays above the city’s railway station were being offered for up to £1,620 during the championship in Carnoustie - a dramatic increase from the £59.40 for anyone who wants to check in this Friday.

The chain insisted the cost was an attempt to deter bookings so they had spare rooms during the famous golf tournament and insisted anyone who decided to pay such a high price would be given a refund.

Operations director Steve Allen said the hotel was fully booked, while it is understood two rooms are being kept spare in case they are required due to unforeseen problems.

Mr Allen said: “Due to a system error in our booking engine this week our website was displaying artificially high prices. This happens sometimes when the hotel is full, to prevent users of third party websites from booking a room when there aren’t any available.

“We don’t operate an overbooking policy so the system sets rates to put people off booking. We haven’t ever and don’t expect to have any reservations at these prices.

“If a guest did complete a booking at those rates, they would be refunded entirely and charged the rate of the day, exactly the same as the other guests staying that night.”

Rooms are available on 22 July, the final day of the championship, for £360.

Other hotels with large increases included Hotel Indigo Dundee, which increased from £89 to £225 when the golf takes place.

Prices at two of Dundee’s Premier Inns, in the city centre and at Gourdie Croft on Kingsway West, go up from £67 and £64 to £199 and £179 respectively.