London hotels saw double digit growth of 10.1% in revenue per available room (revPAR) to £94 in the first quarter of 2010, Deloitte said today (April 13).
The consultants said that occupancy, which rose by 5.4% to 76.2%, was the "key driver" of the growth.
During the three months, average room rates in the UK capital also rose by 4.5% to £123.
Marvin Rust, Deloitte's hospitality managing partner, said the figures showed that London hotels were "on a fast track to recovery."
He said: "The start of 2010 has seen hoteliers in the capital build upon the growth reported in the final quarter of 2009."
Performance was, however, affected by Easter being a week earlier this year, as the drop in business travel reduced revPAR in the last week of the first quarter.
He said the "most important news" to emerge from the figures was that week day performance was now stronger than weekends.
"The results now indicate that recovery in the corporate market has begun," Rust said.
But hotels in the UK regions fared less well with revPAR dropping by 1% in the first quarter.
Rust said this was caused by a drop in business during snow bound January as revPAR figures grew in both February and March.
www.deloitte.co.uk