"Delhi offered travellers the best deal on five-star accommodation with average prices of Rs 9,652 a night in 2013. Mumbai followed in the second place with Rs 9,809," the Hotels.com Hotel Price Index (HPI) said.
The Chinese city of Guangzhou was the third best with Rs 9,812 per night, the report revealed.
Brussels, the capital city of Belgium, secured the fourth place with Rs 10,144, while Berlin in Germany ranked fifth with Rs 11,386.
When it came to deals on four-star hotels, the prices in Delhi and Mumbai were relatively competitive, the report said.
Delhi ranked fourth with Rs 6,555 per night, while Mumbai was at fifth position with Rs 7,010 in the four-star category.
Bangkok (Thailand) offered the best price with Rs 5,933 a night, followed by Budapest in Hungary with Rs 6,375.
Guangzhou ranked third with Rs 6,553 the report pointed out.
The report further stated that it was still less expensive to stay in a four-star hotel in Delhi than a three-star property in 24 of the most popular destinations such as Tokyo (Japan), Singapore or Paris (France).
It was even lesser than a two-star in London (UK), San Francisco and New York in the US.
If location was not a factor when choosing a luxury break, it would have been possible to spend four nights in Delhi for the same price as one in the Big Apple (New York).
The Hotel Price Index (HPI) report also revealed the top 10 most expensive cities for five-star hotels in 2013.
At the top of the list with Rs 38,904 per night was New York, followed by Singapore with Rs 24,822.
London stood third with Rs 24,672 a night, while Paris ranked fourth with Rs 24,250 and with a marginal difference Moscow acquired the fifth position with Rs 23,270.