BDO Hospitality Consulting, which compiled information from 369 hotels, said customer numbers were slightly down on the previous year but overall, room prices had increased and the industry had seen profits rise.

The strong pound, which hurt manufacturers deeply over the year, had less effect on hoteliers as only 12 per cent of hotel residents outsideLondon came from abroad.

Overall in Britain, the average daily room rate was up from £63.41 to £65.22, with London the most expensive at £111.89.

Scotland was the cheapest at £53.34 a room while hotels in England and Wales outside London charged an average of £54.73.

In the provinces, room occupancy was down slightly, balanced by a rise in room rates of £2.20.

But more local hotels were being built on the back of increased interest in football, with Reading FC and Manchester United building local venues associated with their teams.

London also saw a 2 per cent decrease in room occupancy but a 6 per cent rise in room rates - up by £6.56.

The capital saw an increase in tourists from North America, helping to offset those deterred by the strong pound and customers from the Far East.

But figures from the last few years suggest London hotels have reached peak occupancy levels.

BDO said the Millennium Dome will act as an international tourist magnet, with other visitors pulled in by the Tate Gallery of Modern Art and London's diverse range of restaurants.

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