Worst is over for room rates at US hotels--study

* Rates to slump 8.8 pct in 2009 -- PwC forecast

* RevPAR to decline 16.4 percent

* Supply growth a key headwind for industry in '09

NEW YORK, Nov 6 (Reuters) - The U.S. hotel industry is likely over the worst declines in room rates, but average prices will continue to slide in 2010 as the sector struggles to regain its footing, PricewaterhouseCoopers said on Friday.

Average daily rates are expected to drop 8.8 percent in 2009, the worst drop this decade, the firm said in its latest lodging forecast. Rates may slump another 1.8 percent in 2010.

"I think the worst is over," said Scott D. Berman, partner at the firm's Hospitality and Leisure Practice. "That's barring any unforeseen circumstances."

Many hotels sharply cut their rates this year to stem the slide in occupancy. Corporate cost-cutting has sapped demand from business travelers, a key source of revenue for hotels, while high unemployment continues to hamstring vacationers.

Major hotel operators Marriott International Inc (MAR.N: Quote, Profile, Research) and Starwood Hotels & Resorts Worldwide Inc (HOT.N: Quote, Profile, Research) have forecast revenue per available room, or RevPAR, to be flat or down as much as five percent in 2010, compared with this year.

PricewaterhouseCoopers has forecast that RevPAR, a key gauge of financial health for hotels, will sink 16.4 percent in 2009 and slip 0.7 percent in 2010.