The average price of an Irish hotel room is now higher than in 2006.

A report from accountancy firm Crowe Horwath says the average rate charged for a room in Dublin is €128.27.

The report says Dublin continues to out-perform other regions - with average room rates increasing by 14.7%.

That's almost twice the level of western seaboard hotels, which saw a growth in average nightly room rates of 7.5%.

It says the outlook for the sector remains strong - but significant capacity issues in the capital could cause "competitiveness challenges".

Overall, the national room occupancy level for 2016 was 74.0% - up from 71.1% on the previous year.

Hotels in the Midlands and East region showed the highest year-on-year growth in occupancy levels: up from 65% in 2015 to 68.5% in 2016.

The average room rate charged across all hotels was €104.11.