PKF Hospitality Research upped its projections for U.S. lodging industry performance this year, forecasting a 7.1 percent increase in revenue per available room compared with 2010

. In December, the firm projected RevPAR would increase 5.6 percent year over year. According to PKF president Mark Woodworth, lodging demand in 2011 will increase by 4 percent, driven by growth in both business and leisure travel. The firm projected average daily rates would increase by 3.8 percent, though much of that would be tilted toward upscale and luxury hotels. "The upper-tier hotels cater to guests who are benefiting the most from the improved economy," according to Woodworth. "These managers will have a greater ability to raise their room rates this year. Conversely, the midmarket and lower-tier hotels will continue to lag in RevPAR growth, despite offering the lowest rates."