The Penn State Index of U.S. Hotel Values forecasts continued growth in hotel values, with an 8.8% increase projected in 2013. "Occupancy levels will be at or near their historical peak. Average daily rates are expected to register moderate gains. Construction activity is expected to remain moderate, or at least well below historical averages. Commercial and leisure transient hotel room demand is expected to stay pretty strong, whereas group demand is a bit dicey," said John O'Neill, director of the School of Hospitality Management at Penn State University. Hotel values are expected to grow 6.9% in 2014.