Demand for luxury properties has bounced back even higher. As of March 2011, the South America luxury segment was leading the charge with a 13.8%, 12-month moving average increase in demand. The region was followed by Asia/Pacific (13.4%), the U.S. (11.4%), Europe (7.7%) and Middle East/Africa (4.4%). “We’re seeing luxury room demand bounce back virtually across the globe, which is kind of interesting because after the Lehman Brothers meltdown and after what was coined here the ‘AIG effect,’ it seemed a little bit that luxury was dead so to speak, but that’s really not the case,” Jan Freitag, VP of global development for STR said. Room rates, unfortunately, have been slower to rebound. “There was discounting and it was rampant across the globe,” he said. “Every luxury hotelier felt like with the global recession that they had to cut their room rates. Unfortunately what we’re seeing today is that, yes, there are some increases in ADR for luxury rooms, but unfortunately they’re not yet making up the discounts that we saw in 2008, ’9 and some instances in 2010.” Get the full story at HotelNewsNow.com Read also "Trends shaping the US hotel recovery"