The U.S. hotel industry will not experience overall increases in occupancy and average daily rate until 2011, according to STR.

Smith Travel Research for 2010 projected a 3.2 percent year-over-year decline in ADR to $94.39 and flat occupancy at 55.1 percent. The firm also expects overall supply and demand each to grow by 1.8 percent. For 2011, STR predicted increases of roughly 2 percent for both ADR (to $96.28) and occupancy (to 56.3 percent). "The high-end business travelers will drive the shape of recovery almost certainly," according to a statement from STR president Mark Lomanno. "Momentum will build in the second half of 2010."