Buri Suri Hotel in Chiang Mai, Thailand where room rates start at $70 a night. Picture: Supplied

Hotel rates in the US, New Zealand, Greece and Mexico climbed between four and 17 per cent on the back of the weaker currency, with the biggest price hikes in Mykonos, Santorini, Honolulu, Queenstown and Hollywood.

American cities held six of the top ten places where Aussies paid the most for a hotel, ranging from $294 a night in San Francisco, to $345 in New York and $384 at Lahaina in Hawaii.

Australian travellers did fare better in France and the UK where the dollar gained ground, due to the terrorism threat and Brexit.

10 OVERWATER BUNGALOWS TO DROOL OVER

HOT MELBOURNE HOTELS TO BOOK NOW

10 TRICKS FOR GETTING A HOTEL UPGRADE

HOTEL PERKS WE REALLY DON’T WANT

Lahaina, Hawaii was the most expensive destination for Australians in 2016. Picture: iStockSource:istock

South-East Asian destinations remained the most affordable according to the Hotels.com index with room rates of under $100 a night, often with breakfast included.

The cheapest was Pattaya in Thailand, where the average room rate fell eight per cent to $67 a night in 2016, followed by Phnom Penh in Cambodia at $73 a night.

Other bargain destinations were Chiang Mai in Thailand for $74 a night, Cebu in the Philippines at $80 and Hanoi, Vietnam for $83 a night.

The Palm Boutique Hotel, Phnom Penh in Cambodia, from $63 a night, breakfast included. Picture: SuppliedSource:Supplied

Terrorism took a heavy toll on Turkey, with Istanbul hotels suffering a 30 per cent price drop to $108 a night.

Paris also paid the price for terrorist attacks with hotel rates down ten per cent to an average $216 a night.

Hotels.com Marketing Manager for Australia and New Zealand, David Spasovic said it was great to see that despite the troubles the world faced, Australians’ love of travel continued.

“Rather than bunkering down and waiting for better market conditions in 2017, the answer should be to travel smarter,” said Mr Spasovic.

The Hilton Pattaya may not be Thailand's cheapest hotel but it is great value for westerners. Picture: SuppliedSource:Supplied

Within Australia, Yulara — home to Voyages’ Ayers Rock Resort — had the highest nightly rates on the market at $350, largely due to its popularity with overseas guests flocking to see Uluru and the Field of Light installation.

“International guests couldn’t get enough of Australia in 2016 as they came in droves to experience the beauty of our shores,” Mr Spasovic said.

In the Whitsundays, where One and Only Hayman Island and Hamilton Island lie, rooms averaged $257 a night.

Of the capital cities, capacity-hungry Sydney was the most expensive at an average $221 a night, followed by Melbourne on $174, Perth on $170 and Brisbane at $149.

Travellers looking for a bargain in their own backyard, were best to head to Townsville where hotel rates fell 13 per cent to $112 a night on the back of the resources downturn, or Darwin — down 10 per cent to $137 a night.

For more travel news and inspiration sign up to Escape’s newsletter.