Covering prices and increased demand have led to an increase in profits per room of almost 30% in 2015 according to accounting and business advice firm Crowe Horwath.

Hotels in the capital are markedly higher than the rest of the country - the report found that in Dublin a concentration of luxury properties delivered an average profit of €16,913 per room. This was compared to an average of €13,797 last year.

Ireland's midlands and east enjoyed the sharpest spike in profits per room. They increased by more than 40%, growing to €10,628. Income in these areas benefitted from an increase in non-accommodation revenues as food and banqueting sales improved.

Rising rates and profits could put the special 9% rate enjoyed by the sector under pressure come Budget time if it is seen to be adding to already healthy profits in the industry.

Aiden Murphy, Crowe Horwath partner said that a squeeze on supply will push average hotel prices in Ireland past their Celtic Tiger peaks during 2016.

"More supply is needed for the Dublin market. Dublin occupancy is at a natural high," he said.

These numbers do not reflect any effects related to the UK's Brexit vote. The weakening of sterling could lead to fewer Britons making the trip across the Irish Sea.

This report comes weeks after the Irish capital was labelled one of the most expensive cities in Europe to rent an Airbnb room in.