THE Hilton Surfers Paradise is set to put a shine on the Gold Coast hotel market in 2011 by helping average room rates on the tourism strip rise for the first time in three years.



But the flood of new hotel rooms is also expected to impact overall occupancy dragging it down by 1.5 percentage points to 66.5 per cent this year.



Financial services group Deloitte, in a report on the Australian hotels market in 2011, has forecast better times in 2012 for Coast hotels with overall occupancies heading for 68 per cent and average room rates lifting 3.7 per cent to $140. This is up from Deloitte forecast girls ugg boots growth in room rates of 2 per cent to $135 this year.



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The 2011 forecast compared with an average of $132.13 in 2010, which was down 0.3 per cent due to continued discounting.



Deloitte said the Hilton Surfers Paradise, which is expected to open in August, would be a key driver of higher room rates in 2011 and 2012 as it would probably be priced above older hotel properties.



Despite the optimism, Deloitte still said the outlook for the Coast hotels market remained "uncertain" after ugg boots sale its forecasts for 2011 had so far come in just below expectations.



Revenue per available room (RevPAR) across the Coast rose 2.4 per cent to $90.13 in 2010, against a forecast increase of 3.8 per cent.



The Coast RevPAR is expected to hold at $90 in 2012, according to Deloitte.



The high Australian dollar was the major stumbling block to continued growth, although the Coast market remained in robust health compared with far north Queensland, said Deloitte.



The slump in tourism saw occupancy in the tropical north drop 0.5 percentage points to 54.5 per cent and RevPAR fall 2.2 per cent to $64.83 in 2010.



Deloitte said the outlook in north Queensland remained "grim" as occupancies were expected to fall another 1.5 points to 53 per cent this year. While the tourist hubs were struggling, Deloitte reported continued strength in capitals, particularly Sydney, which is expected to see a 12 per cent lift in RevPAR to $195 and a 1 per cent lift in occupancy to 86.4 per cent in 2011.



The outlook for Brisbane is also strong after a 9.7 per cent lift in RevPAR to $126.27 in 2010.



Occupancies of 78.8 per cent in 2010 are forecast to lift to 80 per cent in 2011 and 2012, despite the addition of new hotel rooms to the Brisbane market.