The Irish hotel industry has recovered from the crash and is now back to pre-recession levels, with occupancy and average room rates now higher than in 2006.

That is according to the annual Crowe Horwath hotel industry survey.

The research shows that 2016 saw the sixth consecutive year of turnover growth for the sector.

The report, which is compiled from Irish hotels' 2016 accounts, suggests strong profitability will give scope for investment in capacity.

It shows that Dublin enjoyed double-digit percentage increases in room rates for the third consecutive year.

The capital continues to out-perform other regions with average room rates increasing by 14.7%, almost twice the level of western seaboard hotels, which saw a growth in average nightly room rates of 7.5%.

The outlook for the sector remains strong, however significant capacity issues in Dublin could cause competitiveness challenges - with room rate increases potentially eroding a value-for-money proposition, which the city has enjoyed for a number of years.