by Michael J. Shapiro | January 26, 2011

Demand in the U.S. lodging industry should continue to climb this year, according to the latest forecast from consultancy PwC U.S., which should result in the room rate increase that has thus far eluded the overall market. PwC expects demand to climb an additional 3.2 percent in 2011, on top of the 7.7 percent rise experienced in 2010. Because increases in supply remain very low -- PwC predicts a supply increase of just 0.6 percent this year -- the balance of supply vs. demand should result in a significant boost to the average daily rate. Currently, PwC is forecasting a 5.1 percent growth in ADR this year. Occupancy for 2011, according to the report, should increase by about 1.4 percent, to 59 percent, with revenue per available room growing by 7.8 percent over last year.