The U.S. hotel industry is projected to end 2010 with increases in two of the three key performance measurements, according to Smith Travel Research’s monthly forecast update. STR projects 2010 occupancy to increase 3.6% to 56.7%, ADR is expected to end the year virtually flat with a 0.6% decrease to US$97.26, and revenue per available room is forecast to rise 3.0% to US55.13. Mark Lomanno, president of STR, said the industry’s recovery will be driven by upper-end hotels. ‘The luxury chains are going to be by far the best performing of the chain scales in 2010 in terms of RevPAR growth-but of course they had the farthest to come,” he said. Supply is expected to grow 2.0% during 2010 and demand is projected to increase 5.7%.
