Rising room prices enabled the UK hotel market to avoid a slow down in February, according to figures from PKF Hotels.

In London, average yield per room increased from £95.92 in 2007 to £101.45, despite occupancy rate stalling at 77.7 per cent.

The rise was enabled by a 5.8 per cent rise in room rates, which saw the average price of a hotel room in the capital increase from £123.42 to £130.61.

But there were worries for hotels operating outside London, which registered a 0.5 per cent drop in occupancy.

As a result, average room yield inched up just 2.3 per cent – from £49.50 in 2007 to £50.66 – despite an above-inflation 3.1 per cent increase in room rates.

Robert Barnard, partner at PKF Hotel Consultancy Services, said: "It's true that 2008 is likely to be slower than 2007, but this is due not just to the global economic conditions, but also the fact that UK hotels have experienced a healthy period of growth over the last couple of years which is now starting to stabilise."

Earlier this month, a hotels.com study revealed that UK has the most expensive hotels in Europe, while London is the fifth priciest city in the world for a one-night stay.