The September average daily rate at U.S. hotels increased year over year by 4 percent,

and occupancy increased by 5.7 percent to 63.3 percent, boosted by "strong demand" from business transient and group travelers, according to STR. Brad Garner, STR's COO, noted that increases were particularly strong in luxury hotels, and he projected that upper upscale hotel rates would pick up further as lower-rated group business booked from 2008 through 2010 begins to go off the books. Nashville had the highest rate increase, up 11.1 percent, followed by Miami, up 10.5 percent. Rates rose in all major U.S. markets save Washington, D.C., where they fell 0.6 percent year over year. Occupancy also rose in all U.S. markets except New Orleans, STR reported.