Dunedin hotels last year recorded their best results in five years, the Tourism Industry Association says.
The figures have followed news this week the tourism spend for the Otago region was estimated at $3.2 billion for the year to April 2016, up 10% on the year before.
It comes as tourism figures for New Zealand continue to run hot.
TIA hotel sector manager Sally Attfield said the organisation's eight member hotels in Dunedin recorded 75.3% occupancy last year, up 1.7 points on 2014.
That was the city's highest occupancy rate in five years.
The average daily rate rose to $133, up $8 on the previous year, also a five-year high, generating total revenue of $27million.
Ms Attfield said the strong performance was a result of improvements in the New Zealand economy and an increase in international visitor arrivals.
More than 3.1 million visitors entered New Zealand in 2015, 9.6% more than in 2014.
Dunedin also had a strong events calendar, including the Cricket World Cup, an All Blacks test, the Fifa Under-20 tournament, a successful Highlanders franchise and concerts at the Forsyth Barr Stadium.
As well, University of Otago graduations and Black Caps matches at the beginning and end of the year helped provide the increase.
The hotels reported growth in numbers from China and the United States, but a decline in New Zealand and Australian numbers.
They had an increase in tours and groups, based on market share percentages, but a decline in the independent leisure traveller market.
The TIA members were: Hotel St Clair, Kingsgate Hotel Dunedin, Quest Dunedin, Scenic Hotel Dunedin City, Scenic Hotel Southern Cross, The Executive Residence Boutique Hotel, The Victoria Hotel Dunedin and Wains Hotel Dunedin.
