London hotels beat slump as businesses check back in

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Research from accountancy firm PricewaterhouseCoopers showed that the capital's hotels have reversed the trend reported last year, with revenue per room up 9% in January.

The firm predicted that higher demand will encourage London hoteliers to push up room rates by about 3.5% this year to an average of £120.

Robert Milburn of PWC said more tourists, conference bookings and the return of the business traveller had boosted the hotel markets.

"Growth in the UK hotel industry reflects the capital's resilience to the recession. We think the worst is over and London looks set to build on its flourish in late 2009," he said.

PwC also said the weak pound meant London's hotels were good value for overseas visitors.