Tourism Western Australia has identified 24 office buildings for potential conversion to hotels to ease the room shortage in the city.

Despite the global financial crisis, Perth's hotel occupancy only declined two percentage points to 82% in 2008 as compared to 2007 and up to 300 rooms are needed annually.

However, the authorities are of the opinion that average room rates need to increase by approximately 30% from the current US$100 before office owners will consider conversion.

Presently, the cost of building a five-star hotel is between US$243,000 and US$329,000 per room while refurbishment of an existing building is approximately 30% to 50% cheaper. 

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