Smith Travel Research in July said drops in U.S. hotel industry room rates and revenues would be deeper than expected in 2009 and that moderate declines would continue through 2010.

The firm now projects that average daily rates will drop by 9.7 percent in 2009, and revenue per available room will be down 17.1 percent year-over-year. In April, it forecast a RevPAR drop of 9.8 percent and a rate drop of 3.6 percent (BTNonline, April 28).

STR said occupancy will drop 8.4 percent to 55.4 percent this year, slightly down from the rate of 56.5 percent it forecast in April.

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