London hotel occupancy is returning to boom levels giving catering suppliers in the capital a welcome uplift in trade.

The Hotelbenchmark survey compiled by consultancy Deloitte shows that occupancies averaged 74 per cent in the first quarter, up eight per cent on the same period last year.

"The top end of the market is the most cyclical, so the improved economic environment will have helped lift the performance of these hotels," said Marvin Rust, hospitality managing partner at Deloitte. "But the huge level of occupancy growth also suggests hoteliers are finding innovative ways to attract visitors."

Catering suppliers at New Covent Garden are also starting to feel the upturn. "It certainly feels as though things are finally starting to change direction," said Peter Fowler, president of the Covent Garden Market Tenants' Association. "We are starting to see more movement on the speciality lines such as asparagus. I would say the uplift really started in December last year."

Classic Fresh Foods supplies top hotels and restaurants from its base on New Covent Garden Market. "The winter is usually very quiet, but we had a very good January this year and February was not bad either," said Classic's Claudia Trewin. “Things have not been the same since 9/11 and I wouldn't say they are booming, but trade has been a little better."

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