U.S. hotel rates continued to inch upward in October, a pattern that should continue for the rest of the year

, according to Smith Travel Research data. U.S. average daily rate in October rose 1.2 percent compared with the prior year. Occupancy reached 61.3 percent, up 6.9 percent from October 2009, contributing to an 8.2 percent increase in revenue per available room. STR president Mark Lomanno attributed the "sluggish" room rate growth to "lower-rated group business that was booked months before there was a significant demand turnaround. We're hopeful that we will see steady, but probably slow, room rate growth for the remainder of the year." New York and Boston posted the highest rate increases, up 6.9 percent and 6 percent, respectively. Rates declined in a few markets, including Philadelphia (down 7.3 percent) and Nashville (down 5.1 percent). Occupancy increased across all major U.S. markets, including a 14.8 percent increase in New Orleans and a 13.2 percent increase in Dallas.