The lodging industry's encouraging third-quarter performance
illustrates that a business travel-driven recovery is underway, underscored by
a forecast from upper upscale hoteliers of high single-digit percentage
increases for corporate negotiated room rates in 2011.
Average daily rates for U.S. hotels during the quarter
increased year over year for the first time in two years, up 1.6 percent,
according to STR. Occupancy increased 6.7 percent to 63.9 percent, the highest
quarterly occupancy increase that STR ever has recorded, STR senior vice
president Bobby Bowers said. Hoteliers said those occupancy gains came largely
from a rebound in corporate transient travel.
However, despite occupancy gains, rate growth has been more
sluggish at midprice hotels.