Sydney hoteliers have had their best November in 20 years with occupancy rates rising to 91 per cent and room rates up almost eight per cent to $235 a night, according analysts STR Global.

These figures, which include CBD and non-CBD hotels, continue a stellar run for Sydney hotels this year off-the back of the rising tourism sector, driven by the lower Australian dollar and rising numbers of overseas visitors.

Sydney is by far the biggest recipient of overseas visitors, accommodating more than half of the 6.6 million overseas visitors that arrived in the year to June, according to Tourism Research Australia. 

"The 91 per cent absolute occupancy level would be the highest for any November in Sydney since 1995," said STR Global. "Demand growth in the market outpaced supply growth in each of the first 11 months of 2015, and hoteliers have capitalised on the pricing power."

In November, demand for Sydney hotel rooms (up 2.9 per cent) easily outpaced new supply (up 2.1 per cent) with occupancies given a boost by a strong calendar of events including the AC/DC and Taylor Swift concerts that bookended the month and sporting events like the Australian Open, where world number one golfer Jordan Speith competed.

Sarah Ferris, sales and online distribution manager for a trio of Surry Hills hotels, including the ADGE Apartment Hotel, ranked Sydney's best on TripAdvisor and the Cambridge and Abey Hotels, said their occupancy figures matched those reported across the market by STR Global. 

"We've had a very good year. 

"We've had a lot of interstate and international visitors, a lot of them from Asia." Ms Ferris said.

The November result, which followed the strongest September on record when occupancies hit 86 per cent, saw Sydney outperform other global hotel markets including London (occupancy of 81.6 per cent), Dubai (83 per cent) and Singapore (82.6 per cent) based on STR Global figures.

The rise in Sydney occupancies and room rates lifted revenue per available room (revPAR), the key industry metric, by 8.5 per cent to $214, but a night in a Sydney hotel room is still cheap by comparison to other world cities.

In London, the average room rate increased by 2.2 per cent in November to £150 ($314) a night. In Singapore, a night in a hotel room will cost you S$285 ($279) on average while in Dubai the average room rate is  AED889 ($334).

REASSURING INVESTORS

Sydney's record November performance will reassure hotel investors and developers who have spent billions on hotel investments in Sydney in the past two years.  

According to a report by Savills Hotels, there are about 3,300 new rooms in various stages of construction, planned and mooted over the next 5 years in Sydney, a potential nine percent increase to Sydney's existing supply of about 38,000 rooms.

Projects underway include the new Sofitel at Darling Harbour and the expansion of Australia's biggest hotel, the Four Points by Sheraton at Darling Harbour, part of a $1.5 billion portfolio of hotels being offered for sale by Singapore's Kum family.