U.S. hotel occupancy this year will reach its highest level since 2007,

likely enabling hotels to pursue corporate rate increases in upcoming negotiations, according to PricewaterhouseCoopers. Published Tuesday, the firm's latest forecast projected that the 2013 average daily rate in the United States would increase 4.2 percent from the prior year and another 4.7 percent in 2014. Occupancy for this year is projected to increase by 0.8 percentage points to 62.2 percent, rising again to 62.9 percent in 2014, according to PwC. At higher-tier hotels, occupancy already is ahead of prior peak levels, and construction is "rebounding" but "moderate," the report stated. PwC principal and U.S. industry leader for hospitality and leisure Scott Berman noted that "business and leisure transient hotel demand remain robust, particularly in most of the U.S. top 25 markets," and that "as U.S. hotels enter the budgeting and rate negotiation period this fall with their most significant corporate customers, the foundation is in place for room rate gains."