London hotels enjoyed a 14.4% rise in average daily rooms yield in March compared with the same month in 2005, according to PKF hotel consultancy services.
The rise pushed average daily rooms yield up to £85.58 while there was a 6.9% increase in average daily room rate to £107 and a 7% rise in occupancy to 79.9%.
London hotel occupancy is now the highest it has been since 2000.
But the survey found that the number of visitors from continental Europe, the USA and Japan had dropped although visitors from other countries had increased by 43.4% and now made 20.8% of the total.
Robert Barnard, a partner at PKF, said: "The March figures complete a very good first quarter for UK hoteliers. Domestic visitors are returning to the capital and one in five London hotel guests are now from countries beyond the traditional markets of Europe, the USA and Japan.
"March has been a difficult month for London over the last few years with the outbreak of the Iraq war in 2003 and March Easters but this year is the best since the golden year of the Millennium."
ADP "fattened up" for sale – Bisignani
The increased charges at Paris Charles de Gaulle Airport are part of an exercise to increase
its value prior to a part-privatisation, Giovanni Bisignani said.
The director general of the International Air Transport Association (IATA) said recent increases in charges could only be seen "in the light of fattening up the airport in order to sell it at a high price."
Airlines were now ready to take the French government, owner of Aeroports de Paris (ADP) which runs the airport, to court because of the increases.
Speaking in London, Mr Bisignani said that of all the airports which have raised their charges, ADP was the "worst offender."
It had raised prices by more than 25% in the last five years and now planned a 5% rise each year for the next five years, he said.
The French government is preparing to sell a significant though minority stake in ADP this summer.