London registered an 8.4% year-on-year increase in revenue per available room (RevPAR) in 2011, according to data from STR Global.
The report observed that events such as the royal wedding, street protests and riots in August, which took place in London and around the country, had no significant impact on hotel performance.
RevPAR across all segments in the capital benefited from an increasing average daily rate (ADR) of between 5.7% (midscale and economy) and 10.4% (upscale and upper midscale).
Regional UK RevPAR increased by 1.5% in 2011, according to the report.
Improved regional occupancy, which increased modestly across all market classes from 1.2% (luxury and upper upscale) to 3.5% (midscale and economy), helped fuel RevPAR growth across the UK.
STR Global said the economy and midscale class was the only regional segment in 2011 that experienced an ADR decline, by 2.1%.
Regional cities Reading and Harrogate reported increases in occupancy by 7.6% and 6% respectively, compared with the previous year.
The report said the strongest ADR growth in the regions was reported by Oxford and Brighton with increases of 4.9% and 4.6% respectively.
The highest occupancy across regional UK was achieved at Heathrow Airport with 82.7%, followed by Edinburgh and York, both reaching 80.1%.
Bath, which reported the highest ADR in 2010, ended 2011 with the highest ADR in UK regions, with £87.33.
Preston and Hull posted double-digit RevPAR declines, prompted by an additional supply of 10% in Preston and a declining ADR of 9% in Hull.