The British hotel industry should “brace itself” for more pain following Brexit, with hotel room rates declining substantially since last year’s vote.

According to statistics published by Global Hotel Solutions (HRS UK), average room rates in the UK declined by 12 per cent in 2016 compared with 2015.

Even London experienced a 9 per cent dip, although its room rate remained comparatively strong at an average of £150 per night.

The capital was the UK’s most expensive destination to stay in and was the second dearest city in Europe.

Andy Besent, HRS UK managing director, said the fallout from Brexit was “likely to have had a knock-on effect on the average room rates”.

“The hotel industry should be prepared further as we brace ourselves for what might be the full impact of Brexit later this year, and also the performance of the British pound against the Euro,” he said.

Besent added: “While our data has revealed that average room rates have steadily fallen across all top destinations in the UK throughout 2016, we would urge hoteliers to consider how they can capitalise on demonstrating that Britain is open for business as a cost effective option for visitors.”