The U.S. lodging industry is expected to experience two years of declining demand, a first since 1988

, PKF Hospitality Research reported. For 2008 and 2009, PKF is forecasting a combined net year-over-year increase in supply of 275,000 rooms (6.2 percent), but demand levels are expected to dip by 0.2 percent in 2008 and 1.1 percent in 2009. PKF forecasted average daily rates to increase 3.6 percent for 2008 and 1.3 percent for 2009.