PKF Hospitality Research projects the U.S. hotel supply growth rate will remain below the long-term average until 2017,

according to its March Hotel Horizons forecast report. U.S. hotel occupancy levels should return to pre-recession levels this year, and the firm projects the average daily rate will increase 4.9 percent this year and 5.7 percent next year. Adjusted for inflation, however, U.S. ADR will not reach pre-recession levels until after 2015, "thus suppressing the financial feasibility of new development projects in the near term," according to Cornell University School of Hotel Administration real estate professor and PKF advisor Jack Corgel. A few U.S. markets—New York, Miami, Nashville, Austin, Pittsburgh and West Palm Beach—will have supply growth of more than 4 percent during the next two years, but occupancy levels in those cities also are projected to remain above the long-term average through 2018, according to PKF Hospitality Research president Mark Woodworth.