The ranking is based on over 82 million reviews compiled by trivago from over 200 online booking websites.
Trivago is the world's largest online hotel search site which compares rates at over 700,000 hotels on over 200 booking sites worldwide.
"The national capital lands on the bottom of the list of 100 destinations...Mumbai took the 65th position with a score of 78.90 per cent, whereas Delhi was placed on the 90th position in the list with a score of 77.70 per cent," a recent trivago Reputation Ranking report said.
It considers hotels with over 60 reviews and cities with over 130 hotels.
Many other Asian destinations, including Kuala Lumpur (Malaysia), Pattaya (Thailand) and Manila (Philippines), are at the bottom of the list.
Kuala Lumpur was ranked 94, Pattaya (Thailand) 95, Singapore 97, Bandung (Indonesia) 98, Jakarta (Indonesia) 99 and Manila (Philippines) 100.
The bottom list also included Rio de Janeiro (Brazil) (91) which is hosting the football world cup this year, while the vaunted Paris is in the 92nd position.
Hotels in Sorrento in Italy topped the list, followed by Dresden (Germany), Gdansk (Poland), Dubrovnik (Croatia) and Siem Reap (Cambodia).
Polish hotels dominate the top ten, with Gdansk at third, Krakow at sixth and Warsaw (the Polish capital) at the ninth position.