"It is expected that the steepest declines in ADR (average daily rates) have passed, but that year-over-year ADR levels will continue to decline, resulting in a 1.8% decline" next year, Pricewaterhouse-Coopers said.
A 3.2 per cent increase in the number of rooms this year added to the hotel industry's problems, expanding supply just as consumer demand weakened and further hurting the ability of hotel operators to maintain stable pricing.
Many new hotels, including a number of luxury projects and high-end renovations like the Fontainebleau in Miami and the Roosevelt in New Orleans, have opened during the recession as projects that were planned before the downturn.
Occupancy levels for 2009 are expected to decrease 8.4 per cent over 2008 to 55.2 per cent, PricewaterhouseCoopers said.
The number of hotel rooms available is expected to continue to grow next year, but so will demand, leading to a slightly higher hotel occupancy rate for 2010 of 55.8 per cent, the report said.
That's still seven percentage points below the long-term average for the industry of 62.8% occupancy.
While the decreases have resulted in lowered revenue for the hotel industry, they've been a boon for consumers looking for travel bargains, as hotels have slashed rates and offered deals in order to lure guests.
Tips for travelling during flu seasonNew Electronic Highway Signs Easier For Drivers To Read
