Smith Travel Research last week announced full year 2007 results for the U.S. lodging industry. In 2007, average room rates increased 5.9 percent to $103.64, according to a company release, and occupancy averaged 63.2 percent, down 0.2 percent versus 2006. Revenue per available room, the combination of occupancy and average room rate, gained 5.7 percent to $65.50.Industry room supply increased 1.4 percent in 2007 while demand (roomnights sold) gained 1.2 percent, according to the report. Full year 2007 room revenueincreased 7.2 percent to $107 billion."The U.S. lodging industry turned in another good performance in 2007," said Mark Lomanno, president of Smith Travel Research, in a statement. "Since the peak in 2005, industry RevPAR has grown 14 percent. We expect another good year in 2008. Room supply growth will likely increase and reach the long-term trend number of just over 2 percent. Demand (rooms sold) growth should continue but will likely be lower than supply growth, resulting in declining occupancy. We believe that average room rate growth will totally drive RevPAR gains this year. Our current full year 2008 industry RevPAR forecast calls for growth in the 4.0-4.5 percent range."