Hotel Industry Performance Analysis

Questions and Answers

What is STR Global?

STR Global tracks supply and demand data for the hotel industry and provides market share analysis.

What does STAR stand for in the context of hospitality?

Smith Travel Accommodations Report

Which of the following categories are popular for operating comparisons produced by STR? (Select all that apply)

ADR (correct)

Javascript

Occupancy (correct)

RevPAR (correct)

What does an index of 100 indicate?

A hotel has performed exactly equal to its competitive set. Signup and view all the answers

What is a competitive set?

The group of competing hotels that an individual hotel's performance is compared against. Signup and view all the answers

How do you form a competitive set?

Request a participation list, choose 4-6 competitors, and receive reports within 7 days. Signup and view all the answers

What metrics are compared in a STAR report? (Select all that apply)

Occupancy Signup and view all the answers

The occupancy percentage equation is _____

<h1>rooms sold/# rooms available</h1> Signup and view all the answers

The ADR equation is _____

room revenues/# of rooms sold Signup and view all the answers

The RevPAR equation is _____

room revenues/# rooms available Signup and view all the answers

The index equation is _____

my property/comp set Signup and view all the answers

What does the summary charts review indicate?

It summarizes performance indexes for occupancy, ADR, and RevPAR over 18 months. Signup and view all the answers

In what year was STR founded?

1985 Signup and view all the answers

When did STR start collecting monthly STAR data?

1987 Signup and view all the answers

When did STR start collecting Canada, Mexico, and Caribbean data?

1992 Signup and view all the answers

When did STR start collecting weekday/weekend data?

1997 Signup and view all the answers

What year did STR launch WWSTAR?

1998 Signup and view all the answers

What year did STR launch DaySTAR?

1999 Signup and view all the answers

What year did STR launch eSTAR?

2000 Signup and view all the answers

What year did STR launch DaySTAR plus?

2001 Signup and view all the answers

When was the Pipeline launched by STR?

2003 Signup and view all the answers

How many properties are part of the US census database for STAR participation?

49,000 properties Signup and view all the answers

How many properties and rooms are involved in monthly STAR data submissions?

over 23,000 properties and 3 million rooms Signup and view all the answers

What is the number of properties participating in WW STAR participation?

35,000 properties Signup and view all the answers

What are the rules for creating competitive sets?

Minimum of 4 hotels, a single hotel or chain cannot exceed 35% of rooms. Signup and view all the answers

What are the rules for changing competitive sets?

Changes are made in pairs, can add a single new hotel, or drop a non-reporting hotel. Signup and view all the answers

Study Notes

STR Global Overview

STR Global tracks supply and demand data in the hotel industry, offering market share analysis for hotel chains and independent hotels.
Provides historical hotel performance trends on daily and monthly bases, aiding understanding of market dynamics.

Smith Travel Accommodations Report (STAR)

STAR report assesses a hotel's performance against a selected competitive set.
Produced by Smith Travel Research (STR), focusing on sales results comparison.

Operating Comparisons Categories

Common categories for performance comparisons include occupancy, ADR (Average Daily Rate), RevPAR (Revenue Per Available Room), market share, historical trends, and monthly or year-to-date performance.

Index Performance

An index of 100 indicates equal performance to the competitive set.
An index greater than 100 means outperformance, while an index below 100 shows underperformance.

Competitive Set Definition

A competitive set, or "Comp Set," is comprised of competing hotels to benchmark against for operational performance.

Forming a Competitive Set

To establish a competitive set, request a participation list and select 4-6 competitors, with reports received within 7 days.

Key Performance Metrics

Compare occupancy percentage, ADR, and RevPAR to gauge hotel performance.

Key Equations

Occupancy %: Rooms sold ÷ Rooms available
ADR: Room revenues ÷ Number of rooms sold
RevPAR: Room revenues ÷ Rooms available
Index: Property performance ÷ Comp set performance

Review of Summary Charts

An 18-month performance chart summarizes occupancy, ADR, and RevPAR, indicating performance with color-coded lines.

STR Historical Milestones

Founded in 1985 and began collecting hotel data the same year.
Collected monthly STAR data starting in 1987, extending data collection to Canada, Mexico, and the Caribbean in 1992.
Expanded to include weekday/weekend data in 1997, launched worldwide STAR data in 1998, and daily data in 1999.
Introduced electronic distribution (eSTAR) in 2000, followed by segmentation features in DaySTAR Plus in 2001, and lodging supply data in Pipeline by 2003.

STAR Participation Statistics

The US census database includes 49,000 properties with a minimum of 20 rooms.
Monthly STAR data submissions include over 23,000 properties and represent about 65% of all US rooms, including major chains and independents.
WW STAR participation involves 35,000 properties globally, with 7,000 actively participating, including over 1,000 in Canada.

STR Industry Categorization

Categorization based on scale (chain or market), tract scale, market price, tier, location, size, service type, and specific hotel types like resort, golf, spa, boutique, or casino.

Competitive Set Rules

Established sets must include at least four hotels with specific limitations on room counts from single companies or chains.
Changes to competitive sets require paired adjustments, with provisions for adding or dropping hotels.

Exclusion Advantages

Exclusive advantages for properties can arise when removed from competitive benchmarking.

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Description

Explore the dynamics of the hotel industry through performance metrics including occupancy rates, ADR, and RevPAR. This quiz delves into the STR Global Overview and the Smith Travel Accommodations Report (STAR), providing insights on market share and competitive performance. Understand how historical trends and indices shape hotel management strategies.