The US hotel industry will continue to recover through 2011 and into 2012, according to the latest US lodging industry forecast by PriceWaterhouseCoopers (PWC).

Occupancy and average daily rate (ADR) are expected to contribute equally to a 7.6% increase in revenue per available room (revPAR) in 2011, while a 7% revPAR increase is forecasted in 2012 due to gains in ADR.

PWC suggests that the growth is due to an increase in hotel demand combined with a contraction of hotel supply.

The supply of hotels is expected to increase by 0.7% in 2011, below the long-term average of 2.1%, which will drive occupancy levels by 59.8%, leading to a 3.7% increase in ADR in 2011 and an additional 5.5% increase in 2012.