Average daily rate for U.S. hotels is expected to decrease 2.3 percent to $95.45 by the end of 2010

, according to an updated forecast by Smith Travel Research. Occupancy is projected to increase 1.9 percent to 55.8 percent while revenue per available room falls 0.5 percent to $53.22. Additionally, supply is projected to grow 2.2 percent and demand is expected to rise 4.1 percent as the "recovery will pick up its pace during the second and third quarters of this year," according to STR president Mark Lomanno. In 2011, ADR will rise 3.5 percent to $98.79 and occupancy will climb 1.9 percent to 56.8 percent, STR reported.