Annual turnover climbed from £16.5bn in 2014/15 to £18.3bn, figures from Ortus Secured Finance show.
It continues a longer trend of improvement, with takings up 26 per cent over five years, with Ortus attributing the growth to budget chains like Travelodge and Premier Inn, and boutique chains which have focused on luring in travellers from outside the EU.
Visitor numbers from North America and Canada climbed 9 per cent over the year, with the average stay recorded at 8.5 nights and an average spend of £885 per visit.
Numbers from Asia increased 10 per cent, while visitors from Europe climbed just four per cent.
Ortus managing director Jon Salisbury said: “Despite the growth of new alternatives to the market such as Airbnb, the UK’s hotel sector has proved itself versatile, and is still thriving.
He added: “However, in order to capitalise on the growing numbers of visitors outside the EU, hotels may need to rethink how they market to these visitors. It’s important that hotels offer the amenities and attractions that will be expected by their target guests.”
“For example, guests travelling from further afield are more likely to stay in the UK for longer periods of time- so hotels that offer spa facilities and entertainment may be more attractive.”
With the UK voting to leave the EU just under three months ago, Ortus added that the drop in the value of sterling could cause Britons and overseas visitors both to holiday in the UK.
However, it added the long term effect may be that hotels have to work harder and invest more in order to attract visitors.