Australia is experiencing a boom in boutique hotels, according to a new report from Tourism Australia.

"Increasingly, consumers are seeking small, luxury hotels which offer a range of immersive experiences, fine food and wine and high levels of service," says the report. "With their cutting-edge design and tailored experiences, boutique hotels appeal to travellers in search of a sense of connection."

As a result of their growing popularity, boutique and lifestyle hotels offering authentic experiences are in demand from investors seeking higher yields. They are often located in regional locations that are set to become must-visit destinations.

The report then lists a number of new and under construction boutique hotels in Australia. To read the full report, click here.