London hotels are faring better than their provincial counterparts despite the terrorist attacks, according to hospitality consultants TRI.
Total profit per available room in London for the six months to the end of June rose 6.9% to average £8,518, but in the provinces profit per available room rose by only 1.3% to £5,756.
However, TRI's director David Bailey pointed out that as the capital had been hit harder than the rest of the UK by the post-9/11 economic downturn, any gain would be more dramatic that in the provinces.
The key driver of London's success was put down to the rise in room sales which had helped to boost profit per room.
Bailey said the affect of the terrorist attacks would be limited unless a sustained terror campaign emerged.
"Events such as 7/7 usually have only a short-term effect. The main driver for performance of hotels is the economy, particularly the strength of corporate spending." said Bailey.
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