by Michael J. Shapiro | November 17, 2010

PwC updated its U.S. lodging forecast this week, speculating that significant average daily rate hikes will occur in 2011. Demand has rebounded faster than expected, according to the forecast, and average demand for this year should be just 1.1 percent below that of 2007. That sets the stage for a growth in room rates, according to PwC. The reduced rate of hotel construction, which is limiting supply, is a key factor. Average daily rate growth should be nearly flat this year (down a hair, by 0.1 percent) but should jump by 4.8 percent in 2011. Forecasted revenue per available room growth is 7.4 percent for 2011, which would be the highest such increase since 2006.