Liverpool's Capital of Culture year has provided a welcome boost to the city's hotel sector, according to a new study.

A report by property consultants Knight Frank indicates that the sector looks set to perform well for the rest of the year thanks to investment in existing and new hotels.

One example of this is the Ability Group's acquisition of the Hilton for a sum of £55 million.

Knight Frank's study says that premium hotel brands are "increasingly being sought" in mixed-use developments, reports the Liverpool Daily Post.

Moreover, the economic downturn and the credit crunch do not seem to have had an impact on the market.

"The appetite from debt providers that understand the cash flow of a hotel remains reasonable," the report adds.

Some of the demand can be attributed to the success of the Echo Arena and BT Convention Centre.

It was recently confirmed that BBC director-general Mark Thompson is to be the keynote speaker at Liverpool Chamber of Commerce's annual dinner at the BT centre.