Hotel rates rise

Hotel operators are expecting a rise in room rates as more international travellers take advantage of the lower Australian dollar, according to a new survey.

The Hotels.com Hotels Price Index indicated prices in Sydney rose 9 per cent on the same period last year to reach an average of $190 per night. Melbourne increased 4 per cent to average $163 a room.

This comes as Sydney prepares for two new premium-grade hotels at Baranagaroo South and Darling Harbour by 2016.

The vice-president of Hotels.com Asia Pacific, Johan Svanstrom, said the latest figures show the global hotel industry's recovery was tracking well. "While currency fluctuations ... have affected some growth rates, continued growth in business and leisure travel across the region with the expansion of low-cost air travel is likely to continue," he said.