Dublin recorded the fastest increase in hotel transactions and revenue per room of seven European cities in 2014, according to a new report by Savills.

A survey of hotel markets in seven European cities by Savills, ranked Dublin first in terms of growth in the amount of revenue hoteliers raised per available room (RevPAR).

RevPAR growth is calculated by multiplying a hotel’s average room rate by its occupancy rate.

RevPAR growth of 11.3 per cent was achieved in Dublin hotels in 2014. The next best performing city was Madrid with 10.2 per cent RevPAR growth.

This was followed by Amsterdam and Berlin, with the major tourist capitals of London, Rome and Paris showing much lower rates of growth.

Savills director of hotels Tom Barrett said Ireland's hotel market has benefitted significantly from an increasing number of overseas visitors – particularly from the US and UK.

“With the euro continuing to weaken against the dollar and the pound, this is a trend that is likely to continue. Therefore we expect demand from hotel investors – both at home and abroad – to remain strong in 2015,” he added.