Hotels in Britain enjoyed their best performance of the decade in 2006 to surpass even the highs of the late 1990s, according to consultants PKF.
Revenue per available room (revpar) grew by 10.1% to £65.93 thanks to a greater flow of both tourists and money into the UK.
The strongest growth was seen in London, where revpar soared by 16.6% to £97.12 and demand for rooms was especially high in the upscale sector.
The robust performance followed weak occupancy figures in 2005 in the wake of the July bombings of the London transport system, combined with the arrival of more business and leisure tourists in 2006 from the Middle East as well as the traditional North American and West European markets.
Refurbishments and the growth in competition from new hotels contributed to more subdued growth in the regions, where revpar increased by 6.6% to £50.44.
While PKF predicts more growth in revpar during 2007, it warns this will not match 2006 levels as the opening of new hotels will dampen occupancy growth to leave average room rate as the key driver.
|Regional UK||72.5%||71.4%||+1.1 points|
|**Average room rate**||2006||2005||% change|