ATLANTA-US hotels are poised for hefty increases in revenue per available room (REVPAR) and net operating income next year, according to research firm PKF Hospitality Research.

The Atlanta-based company reports that it expects US hotels will post a 7.7% increase in revenue per available room (RevPAR) in 2014, along with a 15.4% rise in net operating income (NOI).

“We expect the factors that have inhibited lodging performance during the first half of 2013 will dissipate as the year goes on,” states R. Mark Woodworth, president of PKF-HR. “By 2014, any uncertainty caused by fears of fiscal cliffs and sequestration should be alleviated, thus resulting in improved attitudes among hotel guests, owners and operators.”

For 2014, PKF-HR forecasts 3.3% growth in lodging demand, along with a projected increase in supply of 1.0%, resulting in a national occupancy level of 63.8% in 2014, the highest annual occupancy rate since 1997.

“Throughout the recovery, we have been pleasantly surprised by the surge in demand. That being said, the growth in average daily rates has been underwhelming,” says Woodworth. “Starting in 2014, we foresee economic and market conditions that should allow managers to become more aggressive with their pricing policies.” From 2014 through 2016, PKF-HR is forecasting annual ADR growth rates ranging from 5.4% to 6.4%.