Hotels in provincial England recorded a year-on-year increase in profit per available room in 2013, according to the latest HotStats 2014: UK, Europe & MENA Hotel Industry Report.
The annual average growth in room profits was the first achieved by hotels outside of London since the onset of the global economic downturn.
Meanwhile in London, despite recording growth in top-line performance, a 2.1% decline in profit per available room reflects a more challenging environment created by a rising cost base.
The HotStats report for January 2013 compared to January 2012 stated: "Hotels in the Provincial UK got off to a better start than those in London in 2013 with a 0.5 percentage point decline in room occupancy offset by a 2.0% increase in achieved
average room rate to £65.82.
"As a result, hotels in the provinces successfully achieved a 1.0% increase in RevPAR, which is in line with the 0.9% increase in RevPAR achieved in the Provincial market during the same period in 2012."
Hotels in Wales achieved a 1.6% increase in profit per room in 2013 compared to the previous year, the report showed.
However, Welsh hoteliers remain worryingly reliant on major events as the corporate sector continues to fall away, according to the report.
Primary hotel markets in Scotland provide evidence of the strength of the regional economy, with Aberdeen and Edinburgh among the top performers in the UK.