Perth is the toughest capital city to secure a hotel room in Australia, according to industry research by Deloitte.
Deloitte's Hotel Market Outlook predicted Perth's occupancy rate would be 88.4 per cent by the end of 2011, edging out Sydney, which was flagged to have an 87 per cent occupancy rate.
Perth's hotel occupancy rate was 82.5 per cent at the end of December.
Also, revenue per available room in Perth would increase 20.6 per cent in 2011, Deloitte said, up to $157 from $130 in 2010.
Nationally, Australian hotels are on course to record room occupancy levels of 65.6 per cent by the end of 2011, improving from 63.9 per cent at the end of 2010.
Revenue per rooms is expected to increase by 9.1 per cent across all capital cities, up from $89 in 2010 to $97 by the end of 2011.
Deloitte national leader for tourism, hospitality and leisure, Rutger Smits, said Australia's active resources market was driving a positive economic outlook.
"This drives corporate demand for accommodation," Mr Smits said.
"In 2011, I expect average room rates in major Australian cities to see strong growth on the back of surging demand, supporting high room occupancies."
Mr Smits said prolonged absence of significant additions to accommodation supply often underpins strong occupancy levels.
"New supply in the accommodation space will remain very limited as land, labour and construction costs remain high," he said.
"This is unlikely to change until profit margins in the hotel industry improve materially."