A late Easter this year helped increase London's revenue per available room figure in March by 14.2% to £113.27, according to preliminary data from STR.
However, STR analysts said the timing of the holiday is expected to have a detrimental impact on the performance of London hotels during April.
Occupancy and average daily rate figures in March also increased, up by 5.7% to 80.5% and by 8% to £140.65 respectively.
Meanwhile, the 8.7% increase in demand for rooms was ahead of the 2.8% increase in supply.
Airport hotels, in particular, reported an increase in demand, probably due to the increase in inbound tourism driven by the on-going devaluation of the pound.
Last week STR reported that the performance of the capital's hotels remained strong during March, despite the Westminster terrorist attack.
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