PKF Hospitality Research projects 2012 will be a "favorable year of growth" for U.S. hotels, with average rates increasing by 4.7 percent.

The bulk of the increases will reside in the upper tiers, where occupancies will be above 70 percent, but hotels in all tiers should have rate growth above their long-term average levels, according to the firm. Even though it projects demand growth will slow next year, PKF said rate increases should continue in 2013, increasing by 5.3 percent year over year.