Occupancy levels are forecasted to fall in 2002 to their lowest since 1971. Average daily rate, too, will feel the post-Sept .11 effects, dropping to 1940 levels. An above-inflation rebound is not expected until 2003, when upper demand growth, ADR, supply growth and upscale segments are all expected to upswing.

Not surprisingly, profit forecasts are down for 2002. Aggregate profits are predicted to decrease for the first time since 1991, and lodging productivity should see a drop as room demand declines outpace lodging employee layoffs.

The increased delinquency trend within the industry is also expected to continue. Standard & Poor's reports a 41% increase in late payments on lodging loans for October, compared to pre-Sept. 11 levels. Most affected by the trend will be the midprice and economy sectors, which were already on a downturn prior to the attacks.