PKF Hospitality Research predicted average U.S. daily hotel rates would drop 1.6 percent in 2010 but occupancy levels would increase 3.4 percent

. The "surge in occupied rooms foretells the start of a strong comeback in the demand for lodging," according to PFK president Mark Woodworth. "The magnitude of the turnaround was a very pleasant surprise. Such a large increase in lodging demand suggests a return of pent-up travel that did not occur in 2009." Hoteliers in 49 of the 50 markets covered by PKF's report experienced occupancy gains during the first quarter of 2010 compared with 2009.