Distribution
Smith Travel Research predicted U.S. hotel occupancy in 2010 would rise 4.4 percent versus 2009, with revenue per available room up 4.3 percent to $55.77.
Average daily rate will be roughly flat, the firm estimated. "We're still a little bit worried about the ADR part of the equation," according to STR president Mark Lomanno. "The industry is currently facing a lot of challenges, and there are all kinds of pressures on that ADR number: the online travel agencies and still-rebounding group business, to name just two." STR expects supply to grow 2.2 percent during 2010, with demand up 6.6 percent.