However, growth will moderate this year with Dublin expected to come sixth in the same survey.

PwC estimates that revenue per available room (RevPAR) growth in 2012 was 13.9%, which made it second to St Petersburg among 19 European cities. However, in line with the rest of Europe, this year Dublin hotel room RevPAR is forecast to grow at a much slower 3.1% on the back of anaemic economic growth.

“Room rates are unlikely to reach the heady days of 2007 any time soon. Nonetheless, occupancy is now back to pre-recession levels and, from a consumer point of view, Dublin continues to offer some of the best value-for-money hotel rooms in Europe,” said consulting partner with PwC, Ann O’Connell.

Other key findings for Dublin included an occupancy growth rate of 4.3% last year, although again this is expected to moderate to 1.2% this year. Average daily room rate is forecast to reach €90 per room this year, while the average revenue per available room is come in at €68 this year.

Keith McCormack, director of Visit Dublin and head of events Ireland at Fáilte Ireland, added: “These figures are a great reflection of Dublin’s reputation as a leading destination providing value for money and clearly illustrate Dublin’s international attractiveness, particularly with the city outperforming leading world-class destinations such as London and Paris.”

PwC attributes a number of factors to the recovery in occupancy rates since 2011. These include enhanced consumer confidence; the performances and attractions associated with venues such as the Convention Centre Dublin (CDD); O2 Dublin; Bord Gáis Energy Theatre and the Aviva Stadium; the wide range of events; the availability of good value rooms and the rebalancing of supply and demand in the city centre.

Also speaking at the launch Margaret Geraghty, senior executive at Culture Recreation and Amenity Department, Dublin City Council, added: “2012 saw the hugely attractive and successful Tall Ships Festival taking place; with an estimated 1.25m visitors attending the event. The Emerald Isle Classic American Football Game between Notre Dame and Navy attracted 35,000 overseas visitors to the city to enjoy the game, the city and Ireland.

“During 2013, Dublin will host the Heineken Cup Rugby Final in May and during all of 2013 the city will play a key role collaborating with the many organisations in the city to make the Gathering Ireland a huge success.”