London hotels recovering well after 2005 terrorist attacks

A year after London was hit by terrorist attacks, the capital is flourishing again, according to a new report from Barclays Bank.

London Hotels Review 2006 found that following the tourist slump caused by July's bombings, visitors were returning to the city by the end of last year.

It also recognised that growing interest from emerging markets and a robust business sector had helped the UK tourism industry to recover during the last quarter of 2005 to post an annual growth of 8%.

Buoyant hotel performance has continued into the first quarter of 2006, according to the report, with revenue per available room growing 10.7% compared with the same period in 2005.

Rod Taylor, head of hotels financing at Barclays, said London had started the year well and trading continued to strengthen. "In May, hotels exceeded 90% occupancy and are now exceeding pre-2000 figures."