Hotel operators across Australia’s major cities are expected to increase room rates in a bid to recover the A$270m ($238m) losses incurred last year.

Sydney and Brisbane are more likely to see increased room rates, attributed to a rise in occupancy levels, reports

Sydney’s May occupancy increased to 79% while revenue per room (RevPAR) gained 16% with average daily rates now about A$168 ($148).

Brisbane’s occupancy increased to 82% and its RevPAR rose to A$177 ($156).

Room rates in Melbourne and Perth remained flat while occupancy rose by 2%, according to hotel research group STR Global.

Melbourne recorded 80% occupancy in June with RevPAR up by 10% compared with the same time last year. The city also added a supply of 1,600 rooms.