The Australian hotel industry enjoys a favourable economic year as room rates rose at an average of 4 per cent over 2013, according to the recently published Hotel Price Index from Hotels.com.

Australian hotels were able to increase room prices to $177 a night - an upside considering the average price increase (3 per cent) of hotels worldwide.

"Overall, Australian hoteliers enjoyed a solid year thanks to a weaker Australian dollar which not only helped attract overseas travellers but also retain the domestic market. These factors combined with ­continued inbound growth, ­particularly from Asia as a result of increased access to low-cost carriers and Australia's long-term strategy to double tourism's contribution to the country's [gross domestic product], will see Australian hoteliers enjoy a positive year ahead," Asia Pacific managing director of Hotels.com, Abhiram Chowdhry, said.

Hotels.com based their index on all bookings made locally and internationally through their Web site. The site tracked real prices paid for hotel reservations instead of the advertised rates.

The Hotel Price Index showed that:

  • Gold Coast, in the Blue Mountains and Whitsunday Islands has the most expensive hotels in Australia at $257 a night
  • Sydney hotels were up by 9 per cent over the year to $200
  • Perth room rates dipped by 8 per cent to $195
  • The decline in Australia's mining industry forced Perth hotel owners to lower their mid-week rates as there had been slimmer demand for business accommodations
  • Darwin became the strongest performers among regions in Australia with the only hotels to have a double-digit room rate growth of 12 per cent to $204 a night
  • A significant demand for hotel accommodations in Darwin came from Asian visitors
  • New South Wales' Byron Bay's hotels were up by 9 per cent at $179 a night
  • Melbourne hotels were up by 6 per cent at $171 per night
  • Hobart hotels were up by 5 per cent at $165 per night