Hotels in Northern Ireland enjoyed a record-breaking 2005, according to a new survey by tourism and leisure consultant ASM Horwarth.
Hoteliers achieved their best occupancy levels and room rates in a decade, despite new openings boosting bedroom numbers by 560,000 since 1996.
Average occupancy grew to 65.7%, 3.3 percentage points higher than in 2004.
ASM director Michael Williamson said the region had finally emerged as an "internationally competitive tourist destination".
Demand for hotel rooms in the prime holidaying period of July and August has soared over the past few years to 72% and 76.1% compared with 52% and 60% in 1996. But hotel profits were hit by a 7.6% rise in labour costs, higher utility bills and increasing capital investment.
Paul Collins, director of property consultants CB Richard Ellis in Dublin, put the improvements down to an increase in tourist, conference and corporate business.