Recovery on the horizon for U.S. hotels

A new report forecasts a 2.6 percent uptick in U.S. hotel occupancy and a 4.1 percent increase in revenue per available room during 2010 as business travel continues to regain its strength, according to PricewaterhouseCoopers. Business travel demand had fallen 10.6 percent from its 2007 peak in the first half of 2009 but has since bounced back by 6.9 percent. That rebound, coupled with a slowdown in hotel construction activity, has helped accelerate the rate of recovery for the hotel industry overall. Occupancy is slated to reach 57.2 percent this year, the report says. Room rates are expected to increase by 4.1 percent in 2011, following a slight 0.6 percent decrease in rates this year, PricewaterhouseCoopers said. TRD