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by Michael J. Shapiro | August 11, 2010

U.S. hotels could experience year-over-year increases for 2010 in both occupancy and revenue per available room, according to the latest forecast from Smith Travel Research. The update, released yesterday, projects a 4.4 percent increase in occupancy, to 57.1 percent, and a 4.3 percent rise in RevPAR. The forecast calls for average daily rate to remain nearly flat, with a 0.1 percent decrease. Demand is expected to outpace supply, with the former growing by 6.6 percent, as opposed to a 2.2 percent growth in supply. The magnitude of the recovery will depend on room rate growth, noted STR president Mark Lomanno in a statement. “We’re still a little bit worried about the ADR part of the equation,” Lomanno admitted. That said, the industry should experience growth in all three performance metrics in 2011, according to the forecast.