PKF Hospitality Research lowered its 2008 projected revenue per available room in light of recessionary concerns

. "With the demand for hotel rooms lagging the supply of new inventory," the firm also said U.S. hotel occupancy in 2008 would decline a full percentage point from 2007. However, PKF expects average daily room rates to rise 4.7 percent this year, ahead of both the projected rate of inflation and the typical annual rate increase. "Companies will be looking to control their travel costs and, therefore, will institute policies that may prevent their employees from staying at luxury hotels," said PKF president Mark Woodworth. "However, this segment has some of the most loyal guests that will only settle for five-star service ... so management can continue to increase room rates even in times of an economic recession."