Full year 2007 industry occupancy was 63.2 percent, down 0.2 percent versus 2006. Average room rate increased 5.9 percent to $103.64 and revenue per available room (RevPAR) --- the combination of occupancy and average room rate and a key industry productivity measure --- gained 5.7 percent to $65.50.

Industry room supply increased 1.4 percent in 2007 while demand (roomnights sold) gained 1.2 percent. Full year 2007 room revenue increased 7.2 percent to $107 billion.

In the fourth quarter of 2007, industry occupancy was 57.8 percent, a decrease of 0.5 percent versus fourth quarter 2006. Average room rate was $104.84 in the quarter, an increase of 6.3 percent and revenue per available room improved by 5.7 percent.

"The U.S. lodging industry turned in another good performance in 2007," said Mark Lomanno, President of Smith Travel Research. "Since the peak in 2005, industry RevPAR has grown 14 percent. We expect another good year in 2008. Room supply growth will likely increase and reach the long term trend number of just over 2 percent. Demand (rooms sold) growth should continue but will likely be lower than supply growth, resulting in declining occupancy. We believe that average room rate growth will totally drive RevPAR gains this year. Our current full year 2008 industry RevPAR forecast calls for growth in the 4.0 - 4.5 percent range".