by Michael J. Shapiro | November 25, 2009

The U.S. hotel industry should get some good news in 2011, according to Smith Travel Research. The hotel-industry benchmarking company is forecasting declines in all three major performance metrics for 2009 and 2010 but looks for a rebound in 2011. The 2011 forecast calls for a 2.4 percent increase in occupancy, to 56.2 percent; a 3.0 percent increase in average daily rate, to $96.81; and a 5.5 percent lift in revenue per available room, to $54.41. The increased occupancy should allow hoteliers to raise room rates, according to STR president Mark Lomanno. "It won't nearly come close to getting back to 2007 levels," he said in a statement, "but will at least be the beginning stages of improvement." For this year, STR is calling for an 8.8 percent decrease in occupancy, an 8.9 percent dip in average daily rate and a 17 percent drop in revenue per available room. The prospects for 2010 are slightly better: a 0.2 percent decrease in occupancy, a 3.4 percent decline in ADR and a 3.5 percent RevPAR drop.