Smith Travel Research predicted a 3.4 percent annual increase in average daily U.S. hotel rates for full-year 2008, to $107.44, and a 1 percent year-over-year increase for 2009

. At $108.53, that would represent an "all-time industry best," STR said, followed in 2010 by a further 2.1 percent increase to $110.80. STR also said it expects 2008 average U.S. hotel occupancy to dip 3 percent year over year, and another 3.5 percent in 2009, to 59.1 percent, "the lowest level since 2003." For 2010, STR predicted a further decline in occupancy to 58.7 percent.