Hotel consultancy HVS says this year hotel transactions could improve in London in 2013, though regional hotels outside the city are likely to struggle.

HVS says trading in luxury hotels across the UK and Europe is likely to remain strong, boosted by wealthy guests from Brazil, China, India and Russia.

HVS London chairman Russell Kett said 2013 could see an improvement for hotel transactions as buyer interest remains strong and some debt becomes available.

"Outside London is a different matter, apart from a handful of locations such as Edinburgh, many UK provincial hotels will struggle through 2013 in need of both customers and investment,” Kett said.

"Several owners, whether individuals or banks, will seek to sell their distressed businesses, but buyers will find it hard to secure meaningful levels of debt, which may cause price reductions in some cases."

Despite strong demand London's hotels are unlikely to achieve the premium rates they did during last year's Olympics and Paralympics.