The U.S. hotel industry this summer will have cause both for celebration and concern, predicts Smith Travel Research (STR), which yesterday released its summer 2010 forecast.

According to STR, summer occupancy will increase 2.2 percent this year over last, reaching 63.1 percent nationwide. Average daily rate, however, will continue to decrease, falling 1.9 percent from summer 2009 to $95.16. Finally, revenue per available room will be virtually flat, increasing 0.2 percent to $60.03.

"While demand for hotels this summer will be brisk and will continue to provide positive recovery momentum, rate growth remains a concern," STR Vice President Brad Garner said in a statement. "Conditioned and value conscious consumers will not be reaching as deep into their wallets as in previous summer seasons. We anticipate flat to slightly negative rate growth this summer."

Hotel demand this summer is expected to rise 4.4 percent, hotel supply to rise 2.1 percent and total hotel revenue to increase 2.3 percent, reaching $26.9 billion. This page is protected by Copyright laws. Do Not Copy