London has emerged as one of the most lucrative cities for those considering making a hotel investment, the latest data suggests. Looking at the trivago Hotel Price Index, buyers will note that the metropolis remains one of Europe's best bets as hotel rates in the capital rose by ten per cent in the last month alone.
Indeed, when compared to February 2011 the average hotel prices in London now stands at GBP 150 per night. This dwarfs figures for other popular European cities such as Paris (GBP 131), Rome (GBP 109), Amsterdam (GBP 117) and Berlin (GBP 87).
However, despite double-digit growth occurring in London, the increases were not the norm across the UK. Liverpool, Newcastle, Birmingham and Edinburgh all witnessed a decline in rates, the research showed.
Steven Worboys, managing director of Experience International, commented on the figures, noting that the growth is positive news for both existing investors and potential buyers.
"As the global economy starts to slowly recover we are seeing an increase in both business and leisure travellers to London which is generating demand for accommodation and in turn is driving room rates higher," he said.