Hotel recovery seen in 2011

Smith Travel Research (STR) forecast U.S. hotel industry rates, revenue and occupancy to begin recovering in 2011, based on improved occupancy and less inventory in the pipeline. While any growth is welcome, the levels are nowhere near the business enjoyed by the industry prior to 2008-2009.

“For the first time since 2007, occupancy will improve in 2011,” said STR President Mark Lomanno. “With that, we think that finally the industry will have the ability to raise room rates. It won’t nearly come close to getting back to 2007 levels but will at least be the beginning stages of improvement.”

Demand is forecast to grow by 3.2 percent during 2011, but STR expects declines in all industry metrics to continue in 2010. Read more at BTNonline.