London hotels have benefited from an increase in their occupancy rates during the first half of 2010.

An update to the PricewaterhouseCoopers Hotel Forecast shows that - despite the ash cloud, strikes and bad weather - the average London RevPAR climbed from £87 in the first half of 2009 to £95 a year later.

Liz Hall, head of hotels research, PricewaterhouseCoopers, said: "London is still driving the UK recovery, underpinned by solid ARR gains of over six per cent, as the business mix reflects more transient mid week travellers.

"However, consumer confidence may take a tumble this winter as government cuts, VAT increase to 20 per cent from January 2011, and a failure of incomes to keep pace with inflation starts to hit disposable income."