Lodging demand continued to outpace supply in 2006

, as occupany rose 0.5 percentage points to 63.4 percent, average room rate increased 7 percent to $97.31 and revenue per available room (a combination of occupancy and rate used as a key industry performance indicator) jumped 7.5 percent to $61.69, according to Smith Travel Research. Overall, STR said room revenue jumped 8.1 percent to $100 billion. RevPAR grew 24 percent over three years, the strongest growth STR has tracked since 1987. The firm expects growth to slow to between 5.5 percent and 6 percent in 2007.