Overseas visitors taking advantage of the cheap pound are getting even better value from the capital's hotel accommodation.

London hotels are reckoned to have slashed room rates by £10 this summer and are likely to match that cut again over the next year, according to a report into the sector by consultants PricewaterhouseCoopers (PwC).

It is the biggest fall since 2002, when the hospitality industry struggled to cope with the aftermath of the 9/11 terrorist attacks.

According to the report, London has fallen to 22nd in the firm's league table of most expensive destinations worldwide. The report says the weaker pound has been a lifeline for the hotel industry.

Yet PwC chief consultant Robert Milburn warned the industry remains in a poor way.

"While domestic and overseas leisure tourism has been a tonic for UK hotels, the stark absence of corporate travel has left the sector severely weakened," he said

"Overseas visits are down 9% and air travel is expected to contract further, making the return of the business and conference markets critical for a full recovery."