A hotel supply company has warned that there are problems with hotels staying in a state of high demand.

Key points:Hotels may have been unable to keep their costs down over the last six monthsHotels have been forced to increase room sizes and prices to stay competitiveHotels say the higher costs are due to a lack of space in the supply chain.

Hotel supply company HotelsAustralia says hotels may be losing money on hotel reservationsHotels Australia CEO, Simon Parnell, said hotels were having to spend more on rent to stay in a high demand state.

HotelsAustralia chief executive Simon Prennan said there was a need to “make the supply chains work” to keep prices down.

There is a big increase in hotel costs for that, because hotels are doing so much more to maintain their hotels, they are so expensive to maintain, and so they need to make sure that those costs don’t rise,” Mr Prennan said.””

So that’s a significant increase in the number that are being booked.”

There is a big increase in hotel costs for that, because hotels are doing so much more to maintain their hotels, they are so expensive to maintain, and so they need to make sure that those costs don’t rise,” Mr Prennan said.”

They need to ensure that they’re providing the right service and that the prices aren’t rising so that they can meet demand.

“It’s not just the hotels, it’s the hotel operators, the hotel suppliers, as well.”

Mr Prenan said the increase in costs was partly due to increased demand.

He said it was not uncommon for a hotel to increase the size of its rooms by more than 30 per cent, which would mean more room space in those rooms, and would also have a significant impact on supply chains.

“That’s why hotels are having to do more and more with more room capacity,” he said.”[Hotels] have to do the supply to meet demand, and it’s a real challenge for them to do that.”

Mr Prannan said hotel supply chains were working hard to keep the supply and the price levels low.

“Hotels are not making a profit on those reservations,” he told ABC Radio Perth.

“A lot of the hotels have a high occupancy rate, a lot of those hotels have rooms that are very comfortable, they have room quality and they’re not spending a lot on hotel maintenance.”

He said hotel rooms were “extremely hard to maintain” and needed to be maintained to stay “competitive”.

“Hotel accommodation is a very tough industry to operate in,” Mr Prannon said.

He suggested hotel supply chain operators should take some of the blame for the rising costs, which he said was partly a result of an increase in demand.

The ABC’s Matt Lees reports.

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