Smith Travel Sees Hotel Rates Dropping Through Summer

U.S. hotel rates will continue to decrease through the summer while occupancy climbs, according to the Smith Travel Research 2010 summer forecast published this week.

The report predicts that during June, July and August, average daily rate in the United States will decrease 1.9 percent compared with 2009. Occupancy will increase 2.2 percent to 63.1 percent, according to Smith Travel Research. Revenue per available room will remain steady with 2009 levels.

"While demand for hotels this summer will be brisk and will continue to provide positive recovery momentum, rate growth remains a concern," STR vice president Brad Garner said in a statement. "Conditioned and value-conscious consumers will not be reaching as deep into their wallets as in previous summer seasons."

Smith Travel Research projects summer occupancy will reach a peak of 64.4 percent in July.