London hotels have cut room rates in the last year and seen a hefty boost to business over the same period.

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Hotel room rates covered in a survey by business advisory company BDO LLP were two per cent lower in June 2013 compared to June 2012, while room occupancy rose by 6.3% from 82.6% to 87.9%.

“This is a strong performance in London,” said Robert Barnard of BDO LLP.

“Operators are skilfully using selective price discounting to contribute to top line growth at a time when the operating environment is beginning to show signs of improvement.”

Those price-discounts from London hotels are likely to continue as the after-effects of last year’s Olympics continue to be felt.

“London’s performance may suffer from unfavourable comparisons with last year’s Olympics-inspired success, but the city’s fundamentals are likely to remain sound for the remainder of 2013,” added Barnard.