NEW YORK CITY-Back in January, most in the hospitality industryhad an optimistic outlook for the coming year. After all, nothingcould really be worse than the pits of 2009. However, as we ploughthrough Q3 of 2012, it seems that those in the know – at least withMarcus & Millichap’s research team – caution that while hotelmetrics are up, year-end figures may not be as high asoptimistically indicated in Q1.

According to the firm’s recent Hospitality Research: QuarterlyUpdate, occupancy rates are modestly up from this time last year: amere 1.1% increase. ADR, however, has shown a bit more of a notablegain, up from $101.69 to 2012’s $105.93. As such, room nights willassume a “normal” growth pace, and Marcus & Millichapanticipate that pricing will go up in order in increaserevenue.

While the most recent job report wasn’t stellar, the QuarterlyUpdate highlights the fact that certain industries have contributedto a boost in the hospitality sector. The business traveler isreturning, which has helped, but also gains in manufacturing, oiland gas, and full-time offi ce-using payrolls assisted in drivingdemand. States with strong energy sectors, including Texas, NorthDakota and Oklahoma, show high room demand, with North Dakotatopping the list at approximately 15%.