Renewed growth of domestic business travel (51 percent) and pent-up demand (27 percent) are the prime factors fueling faster than anticipated recovery of the U.S. hotel industry back to 2000 levels, according to a survey of senior executives attending New York University's 27th Annual International Hospitality Industry Investment Conference, held this week in New York City.

More than half of survey respondents expect this upward trend to continue for at least two more years; an even more optimistic 20 percent predict three more years of sustained growth. Threat of terrorism (27 percent) and rising energy costs (18 percent) are the top identified external threats to this trend. Underscoring the current reality, more than half (52 percent) believe a "condo/residential use component" will be included in new hotel investment for at least the next five years.