PKF Hospitality Research projected U.S. hotel rates in 2013 will increase by 5 percent year over year,

with additional annual increases of 6.2 percent in 2014 and more than 5 percent in 2015, according a forecast issued by the firm on Tuesday. PKF forecast occupancy at U.S. luxury, upper upscale and upscale hotels to exceed 70 percent each year until 2017, according to the forecast. While PKF noted that economic ramifications from U.S. federal government spending cuts will slow U.S. hotel revenue growth this year compared with 2012, such growth still will be more than double the long-term average. "When it comes to the drivers of lodging demand, government spending is a relatively minor component of GDP," according to Cornell real estate professor and PKF advisor John Corgel.