Hotel operators in London have seen a 3 per cent increase in room occupancy in September, according to preliminary monthly figures released by PKF Hotel Consultancy Services.

Compared with the same period in 2008, the increase in occupancy coincided with a 3 per cent fall in average room rate to £119.84, although regional hotels have continued to struggle with falls in occupancy and average room rates. Hotels in Cardiff, Birmingham and Liverpool have all reported small increases in occupancy, but a 7.4 per cent decrease in average room rates has led to an overall drop in occupancy across all regional cities to 73.5 per cent.

Robert Barnard, partner for Hotel Consultancy Services at PKF, said: "There is no doubt that the hospitality sector is finding it challenging in the current recessionary climate. "Given continued uncertainty, it is not surprising that the industry has seen little overall growth so far this year. But, on a positive note, it is important to note that occupancy levels remain healthy at between 70-80 per cent across the country with signs that performance is moving towards some stability, particularly for the capital's hotels."