Smith Travel Research this week issued a forecast calling for the U.S. hotel industry's rates, revenue and occupancy to begin a recovery in 2011, and not in 2010 as everyone in the industry hoped for.

The firm on Monday said that the current construction pipeline should be mostly completed by 2011, with growth for the year projected at 0.8 percent. At the same time, demand will grow by 3.2 percent during 2011. This will lead to a 2.4 percent year-over-year increase in occupancy, a 3 percent increase in average daily rate and a 5.5 percent increase in revenue per available room, according to the report.

¡°For the first time since 2007, occupancy will improve in 2011,¡± Smith Travel Research president Mark Lomanno said in a statement. ¡°With that, we think that finally the industry will have the ability to raise room rates. It won¡¯t nearly come close to getting back to 2007 levels but will at least be the beginning stages of improvement.¡±