Madrid-based NH Hotels has announced an 87 per cent increase in pre-tax profits.

Group income reached €646.5m (US$839m, £535m), an increase of 7.2 per cent, resulting in the company generating pre-tax profits of €68m (US$88m, £56m).

NH Hotels currently has 395 hotels with 59,113 rooms in 25 countries across the Benelux, Germany, the Americas, Africa and the Iberian Peninsula

A spokesperson said: "The company generated pre-tax profits of €68m, practically double the same period of 2009, which is fundamentally due to the improvement in hotel activity in all the markets in which NH Hotels operates."

In Spain and Portugal, the fall in average prices began to stabilise and the group achieved a 4.4 per cent increase in RevPar.

The company's German portfolio improved even more dramatically, with like-for-like RevPAR up by 17.4 per cent.

NH Hotels has 27 new hotel projects under construction, which will provide 4,000 new rooms.