At the same time, supply growth is slowing—the 12-month moving average was 1.1% as of June. In the chain-scale analysis, Jan Freitag, senior VP of global development for STR, said the upscale and upper-midscale segments are experiencing the greatest supply growth year to date (2.8% and 4.1%, respectively), which is supported by healthy demand growth of 7.6% in upscale and 10.2% in upper midscale. Average daily rate continues to be a concern despite occupancy improvements, particularly in the upper end of the market, Freitag noted. “There needs to be something else happening here, because that is the engine of the industry,” he said. The 12-month moving average for ADR is 2.5% through June 2011. In the midscale/economy end of the market, 12-month moving average ADR percent change is still not positive. “And that is just sad. … We’re still in a discounting environment.” Get the full story at HotelNewsNow.com