| According to Smith Travel Research, the industry is recovering more rapidly than expected. Demand growth is now projected to be 7.4% compared to the earlier January forecast of 1.8%. This growth, combined with a 2.0% increase in supply, is projected to result in a 5.3% occupancy increase, which is a significant improvement over the 0% previous projection. These increases have resulted in RevPAR projections increasing from -3.2% to +5.4%. |
| ADR is still lagging, although the 2010 forecasted rate growth has been increased from -3.2% to a -0.1%. "Demand has come back faster and swifter than we anticipated", stated Mark Lomanno. "That's a good foundation for the industry to build upon; however, hotel operators must take advantage of the pricing power that is available because of the increase in demand." |
| Projections for 2011 have been increased slightly, with demand expected to increase 2.5%, Occupancy to increase by 1.6%, ADR to increase by 3.9%, and RevPAR to increase by 5.5%. |