City hotel are enjoying near capacity occupancy rates but their country cousins are struggling, according to the latest statistics.
The Australian Burea of Statistics figures show that Perth central business district occupancy rates averaged 83.4 per cent in December last year.
But the average hotel occupancy rate in the South West was 56.3 per cent.
Australian Hotels Association WA chief executive Bradley Woods said the State continued to have one of the most diverse hotel accommodation sectors in the country with the South West experiencing occupancy rates ranging from 34 per cent to 69 per cent in the three months ending December 31.
Mr Woods said the statistics showed that Perth remains competitive, attracting investors and developers but the regions had room for growth.
"Current high demand from business travellers for accommodation in Perth especially from the resource industry has brought with it both pressures and opportunities," he said.
"We know of a number of domestic and international hotel development and management companies that are investigating Perth and in particular weighing up the support of the WA Government and recent changes to planning laws and plot ratios made by the City of Perth."