PKF Hospitality Research projects U.S. hotel occupancy in 2014 will reach 63.8 percent, its highest level since 1997.

The projection is based on a forecast of 3.3 percent growth in U.S. lodging demand next year coupled with supply growth of 1 percent. PKF also projects occupancy in upper-tier hotels to stay above 70 percent through 2017. As such, it forecasts average daily rates at U.S. hotels to increase between 5.4 percent and 6.4 percent annually from 2014 to 2016.