The recovery of the UK hospitality sector has been slowed by the volcanic ash cloud that caused severe air travel disruption earlier this month, according to new research.

Robert Barnard, partner for hotel consultancy services at advisory group PKF, has revealed that increasing occupancy rates since the start of the year have been hit by cancelled bookings. Barnard said: "The no fly zone that was in place for six days and the continuing after effects means many hoteliers are suffering with cancelled bookings.

"The airport hotels in particular found that after an initial boost in bookings, many travellers decided either to find their way home by other means, or find other, cheaper means of accommodation." Meanwhile, preliminary figures for March released by PKF Hotel Consultancy Services have shown a 5.7 per cent increase in occupancy at London hotels compared with the same period last year.

Regional hotels, however, continue to suffer as room rate dropped by 6.3 per cent. Occupancy increased by nearly 6 per cent to 67 per cent.