According to PwC’s 2014 UK hotels forecast, the industry has weathered the economic storm of the last three years and occupancy, room rates and REVPAR are on the up.

After a poor end to 2012 and start to 2013, June saw both occupancy and average daily rate in London improve, with occupancies running at around 81-82 per cent.

Although room rates have fallen from the Oympic-fuelled high of 2012, they look set to rise again in 2014. The average daily rate is £138.20 in London and £59.40 in the regions.

For provincial hotels, long term average real revenue per available room has been in decline since 2007, but it looks as though the decline has now halted.

Occupancies have climbed from 66 per cent in 2009 to 71 per cent and improvements in occupancy are now feeding through into room rates.

PwC says the challenge for hotels is to keep a tight rein on costs and “remain nimble” in the face of continued high levels of new supply, especially from the budget sector.

With cost increases still putting margins under pressure, the key to success lies in location, service and attention to detail, as well as embracing the opportunities of the new digital wave.