London hotels have the second most valuable bedrooms in Europe, according to the 2014 European Hotel Valuation Index (HVI) published by hotel consultancy HVS London.
The HVI, which monitors annual percentage changes in the price of four- and five-star hotels in 33 European cities, values London hotel bedrooms at £513,130, second only to Paris (£550,896).
In third place is Zürich (£411,325), followed by Geneva (£350,570) and Rome (£297,204).
Hotel values for the majority of key European cities increased last year and are expected to continue to rise due to the more favourable lending environment and ongoing economic recovery.
Most hotel markets had a slow start to 2013, but saw improvements in the second quarter with strong third and fourth quarters. Consequently, during 2013 two-thirds of the hotels in the cities surveyed experienced a growth in value, compared with only about half in 2012.
"It is at least a good sign that banks are, again, becoming comfortable with hotel real estate."
Of the cities surveyed, Sofia in Bulgaria had the least expensive rooms, with a value of £76,353, while Athens showed the highest percentage increase in room value - up 7.6% to £91,952.