Hotel Industry
Foundations and Introduction
for the Philippines
The SHARE Center
Supporting Hotel-related Academic Research and Education
Table of Contents
1. Introduction to the Players in the Hotel Industry Affiliations
2. Introduction to Geographic and Non-geographic
Industry Categorizations
3. Introduction to Benchmarking in the Hotel
Industry
4. Introduction to Hotel Math
5. Introduction to Hotel Industry Reports
Note regarding Training Content
• This PowerPoint contain a large number of slides.
• Material that is not critical for the “Hotel Industry
Foundations and Introduction” certification exam is
noted as “optional”.
• An instructor may or may not want to spend time
covering optional content. Some instructors may want
to spend additional time expanding on certain areas.
• Instructors are free to personalize the PowerPoint.
• Contact the SHARE Center if you have any questions or if
we can help in any way.
Note regarding Application Exercises
• There are Application Exercises that are suggested at the
end of each section. These are valuable since they offer
hands-on experience working with live hotel data.
• The raw data that relates to these exercises can be found
in a spreadsheet titled “HIFI application exercises” that
come with the training program.
• You can obtain similar raw data that is relevant to a
market or country closer to your university.
• Contact the SHARE Center if you have any questions or if
we can help in any way.
Part 1 – Introduction to the
Players in the Hotel Industry –
Affiliations
Multiple Affiliations for a Single Hotel
• Chain
• Parent Company
• Management Company
• Owner
• Asset Management Company - optional
Chain
• The Chain represents the hotel brand, which is clearly
displayed to the public on the building and in all interactions
with the customer. STR uses Chain and Brand synonymously.
• There are hundreds of hotel chains throughout the world.
• In some cases, companies organize their hotels by different
chains that may not be obvious to the consumer or traveler,
for example:
– Hampton Inn vs. Hampton Inn & Suites
– Holiday Inn vs. Holiday Inn Express
– Best Western vs. Best Western Plus and Best Western Premier
Chain continued - optional
Hotels have evolved but in many aspects have remained the same.
The first Holiday Inn – 1952
The newest Holiday Inn – 2014
Top Chains in the Philippines (by number of rooms) - optional
Chain
Properties
Rooms
Shangri-La Hotel
4
2,077
Tune Hotels
9
1,537
Eurotel Hotels
9
979
Holiday Inn
3
964
13
924
Marco Polo
3
890
Marriott
2
643
Sofitel Luxury Hotels
1
609
New World
1
598
Ascott
2
582
The Dusit Thani Group
1
538
The Peninsula Hotel
1
493
Days Hotels
5
479
Millennium Hotels
1
450
Quest Hotels
1
427
Microtel Inn & Suites by Wyndham
As of October 2014
* This is a list of
the top chains in
a sample country.
STR can provide
this information
for any country
that you are
interested in.
Top 25 Chains in Asia Pacific (by number of rooms) - optional
Chain
7 Days Inn
JinJiang Inns
Home Inn
GreenTree Inns
Toyoko Inn
Super 8
Sheraton Hotel
Crowne Plaza
Holiday Inn
Route Inn
Shangri-La Hotel
Hilton
Hanting
Novotel Hotels
InterContinental
Motel 168
Hotel ibis
Vienna Hotel
Best Western
Holiday Inn Express Hotel
Westin
Howard Johnson
Hyatt
Apa Hotel
Washington Hotel
Properties
Rooms
1,028
803
828
695
242
607
108
116
124
213
63
72
234
108
66
121
122
132
250
61
46
45
45
66
54
101,466
99,217
95,858
63,700
46,709
45,001
41,943
37,938
35,920
33,477
28,322
27,511
27,508
25,925
24,452
23,548
23,266
22,506
17,805
15,451
15,226
14,849
14,561
14,518
14,333
As of October 2014
Top 25 Chains in the World (by number of rooms) - optional
Chain
Holiday Inn Express Hotel
Holiday Inn
Hilton
Best Western
Marriott
Super 8
Sheraton Hotel
Courtyard
Days Inn
Hotel ibis
Hampton Inn
Comfort Inn
Quality Inn
Crowne Plaza
Motel 6
7 Days Inn
JinJiang Inns
DoubleTree
Home Inn
Best Western Plus
Ramada
Mercure Hotels
La Quinta Inns & Suites
Hilton Garden Inn
Hyatt
Properties
2,315
1,184
557
2,779
494
2,440
434
981
1,728
1,006
1,269
1,582
1,399
398
1,105
1,028
803
393
831
1,049
723
717
854
604
194
Rooms
222,986
217,497
199,076
197,319
177,438
156,430
153,140
144,816
134,286
126,464
122,576
118,234
115,545
111,528
104,497
101,466
99,217
97,585
96,117
94,802
90,371
89,219
85,425
84,091
81,436
As of October 2014
Parent Company
• Parent companies consist of multiple chains. Some people
may use the term “Group” as a synonym for Parent Company.
• Often the parent company will have a variety of different
types of chains. There are sample tables provided for four
parent companies.
• A parent company may have a range of high-end, middle, and
low-end chains; or they may concentrate in one area.
• Parent companies may have hotels around the world or in
specific regions.
Top Parent Companies in the Philippines (by number of rooms) - optional
ParentCompany
Properties
Rooms
Shangri-La Hotels
5
2,389
Intercontinental Hotels Group
5
1,559
Tune Hotels
9
1,537
19
1,517
Ascott Group
5
1,093
Eurotel Hotels
9
979
Marco Polo Group
3
890
Marriott International
2
643
Accor Company
1
609
New World Hotel Group
1
598
Carlson Hospitality Company
2
597
Best Western Company
6
591
Dusit Thani Public Company Ltd
1
538
The Peninsula Hotel
1
493
Millennium & Copthorne Global
1
450
Wyndham Worldwide
As of October 2014
Top 25 Parent Companies in Asia Pacific (by number of rooms) - optional
Parent Company
Home Inns
Jinjiang International Holding
Intercontinental Hotels Group
Accor Company
Wyndham Worldwide
7 Days Inn
Starwood Hotels & Resorts
GreenTree Inns
Marriott International
Toyoko Inn
Hilton Worldwide
Huazhu Hotels Group
Route Inn
Shangri-La Hotels
Hyatt
Best Western Company
Vienna Hotel
Choice Hotels International
Prince Hotels & Resorts
Carlson Hospitality Company
Beijing Capital Tourism Co, Ltd
Washington Hotel Corporation
JAL Hotels Company
Apa Hotel
The Indian Hotel Company
Properties
971
963
378
558
868
1,028
283
695
162
242
126
335
213
76
87
307
132
337
49
100
75
59
48
66
116
Rooms
124,107
121,858
115,795
110,750
102,525
101,466
89,969
63,700
51,956
46,709
42,527
40,152
33,477
33,185
29,946
25,666
22,506
22,095
16,797
15,548
15,403
15,391
14,814
14,518
13,822
As of October 2014
Top 25 Parent Companies in the World (by number of rooms) - optional
Parent Company
Hilton Worldwide
Marriott International
Intercontinental Hotels Group
Wyndham Worldwide
Choice Hotels International
Accor Company
Starwood Hotels & Resorts
Best Western Company
Carlson Hospitality Company
Hyatt
Home Inns
Jinjiang International Holding*
G6 Hospitality
7 Days Inn
Groupe du Louvre*
LQ Management LLC
Extended Stay Hotels
GreenTree Inns
Grupo Sol Melia
Whitbread Hotel Company
Vantage Hospitality
N H Hotels
Toyoko Inn
Fairmont Hotels
Riu Hotels & Resorts
Properties
4,214
4,017
4,669
7,541
6,383
3,498
1,186
3,982
1,090
548
974
963
1,185
1,028
1,174
854
684
695
198
689
961
370
242
112
105
Rooms
695,009
683,083
674,577
652,240
507,666
462,203
345,145
310,162
171,582
150,482
124,366
121,858
113,011
101,466
96,425
85,425
76,263
63,700
61,238
58,275
58,173
56,857
46,709
42,063
41,439
As of October 2014
*JinJiang International Holdings is acquiring Groupe du Louvre
Operation: Corporate, Franchise or
Independent
• STR uses three different operation types:
– Corporate
– Franchise
– Independent
• A corporate hotel is a chain hotel owned and/or managed by
the chain or the parent company.
• A franchise hotel is a chain hotel run by a third party where
the chain receives some sort of franchise fee.
Operation: Corporate, Franchise or
Independent continued
• An independent hotel is not affiliated with a chain or parent
company.
• Here are the number of properties and rooms in the
Philippines and the world by each Operation Type:
Operation
Philippines
Properties
Philippines
Rooms
Worldwide
Properties
Worldwide
Rooms
Corporate
54
14,074
23,975
4,098,267
Franchise
27
2,705
39,016
3,971,136
255
30,295
101,427
7,239,761
Independent
As of October 2014
Independent Hotels
• Independent hotels are not affiliated with a specific chain.
They may be managed or owned by companies listed on
preceding pages.
• There are over 250 independent hotels in the Philippines in
the STR database.
• There are over 100,000 independent hotels in the world in
the STR database.
• Independent hotels vary considerably in size, price level,
location, amenities and other attributes.
Chain Hotels versus Independents in China & WW
Percentages based on Number of Rooms
100
Chain hotels
Independents
75
80
60
53
47
40
25
20
0
Philippines
Worldwide
Management Company
• A management company operates a hotel for another party.
• The company has a management contract where it receives
payment and/or some portion of profits.
• Some chains or parent companies manage their own hotels.
• Management companies may manage a variety of different
chains as well as independent hotels.
Philippine Management Companies (by number of rooms) - optional
Management Company
Total Props Total Rooms Chain Props Chain Rooms
Shangri-La Hotels and Resorts
5
2,389
5
2,389
InterContinental Hotels
4
1,211
4
1,211
Marco Polo
3
890
3
890
New World Hotels
1
598
1
598
Dusit Hotels & Resorts
1
538
1
538
CHM Hotels
1
512
Fairmont Hotels & Resorts
3
442
3
442
Archipelago International
1
427
1
427
Pan Pacific Hotels Group
1
236
1
236
Oakwood Asia Pacific
1
230
1
230
Eclipse Hotels & Resorts Int`l
3
213
Berjaya Hotels & Resorts
1
212
1
212
The Ascott Group
1
149
1
149
Frasers Hospitality
1
89
1
89
Amanresorts International Pte Ltd
1
40
1
40
Indep. Props Indep. Rooms
1
512
3
213
As of October 2014
Top Asia Pacific Management Companies (by number of rooms) - optional
Management Company
Jinjiang Inn Co., Ltd.
Starwood Hotels & Resorts
InterContinental Hotels
Hilton Managed
Shangri-La Hotels and Resorts
Merrylin Holding Ltd
Jin Jiang Int'l Hotels Mgmt Co. Ltd.
Vienna Hotel Group
BTG-Jianguo Hotels & Resorts
JAL Hotels Company
Fujita Kanko Group
Tokyu Group Hotels & Resorts
Hankyu Hanshin Hotels
Archipelago International
Jinling Hotels
CTS HK Metropark Hotels
New Century Int`l Hotel Mgmt
Toga Far East Hotels
Huazhu Hotels Group
Solare Hotels & Resorts
Frasers Hospitality
Zhejiang Narada Hospitality Service
H N A Internationl Hotels & Re
Okura Hotels & Resorts
Swiss Belhotel Int'l.
Dorsett Hospitality International
Total Props
881
228
197
107
72
142
94
131
52
44
42
42
52
74
36
35
28
58
56
47
35
27
31
21
43
20
Total Rooms Chain Props Chain Rooms Indep. Props Indep. Rooms
4
1,115
105,263
228
73,564
73,564
196
62,853
1
227
63,080
106
35,633
1
98
35,731
72
32,025
32,025
140
27,907
2
481
28,388
67
14,257
27
9,368
23,625
131
22,048
22,048
48
12,949
4
1,213
14,162
44
13,208
13,208
27
7,843
15
2,852
10,695
40
10,128
2
287
10,415
30
7,079
22
3,085
10,164
71
9,578
3
308
9,886
35
9,437
1
179
9,616
30
8,647
5
608
9,255
23
7,843
5
1,313
9,156
58
8,233
8,233
56
7,781
7,781
46
7,413
1
127
7,540
26
5,196
9
1,905
7,101
18
4,300
9
2,673
6,973
26
5,735
5
1,121
6,856
19
5,794
2
892
6,686
43
6,233
6,233
19
5,762
1
285
6,047
As of October 2014
Management companies with 6,000 rooms or more; both chain and non-chain managed
Top Global Management Companies (by number of rooms) - optional
Management Company
MGM Resorts
Interstate Hotels
Caesars Entertainment
Crossroads
Merrylin Holding Ltd
White Lodging
Vienna Hotel Group
Pillar Hotels & Resorts
Aimbridge Hospitality
Louvre Hotels
Highgate Hotels
Remington Hotels
Crescent Hotels & Resorts
The Procaccianti Group
Westmont Canada
Hersha Hospitality Management
Ocean Properties, Ltd
TMI Hospitality
GF Management
Sage Hospitality
Atlantica Hotel International
Davidson Hotels & Resorts
Destination
Columbia Sussex
Concord Hospitality
TOP International Hotels
Fujita Kanko Group
John Q Hammons
Total Props
19
147
33
226
142
162
131
226
100
326
36
81
71
53
121
109
81
184
85
65
85
39
40
34
76
94
42
43
Total Rooms
48,357
42,222
41,361
29,373
28,388
25,976
22,048
21,791
21,296
21,096
19,599
16,075
15,956
15,107
14,533
14,038
13,918
13,198
12,285
12,093
12,082
11,891
11,121
11,094
11,020
10,825
10,695
10,545
Chain Props
114
2
218
140
162
131
225
92
326
16
71
64
51
119
96
61
183
72
61
74
38
5
34
76
83
27
41
Chain Rooms Indep. Props Indep. Rooms
19
48,357
34,723
33
7,499
2,861
31
38,500
27,804
8
1,569
27,907
2
481
25,976
22,048
21,642
1
149
19,026
8
2,270
21,096
7,225
20
12,374
14,681
10
1,394
14,006
7
1,950
14,975
2
132
14,181
2
352
12,649
13
1,389
10,639
20
3,279
13,147
1
51
10,368
13
1,917
11,361
4
732
10,513
11
1,569
11,837
1
54
1,214
35
9,907
11,094
11,020
9,899
11
926
7,843
15
2,852
10,066
2
479
Management companies with 10,000 rooms or more; no chain managed
As of October 2014
Owner Companies
• There are many companies that own multiple hotels.
• There are six owner companies in the Philippines with 500
rooms or more.
• There are 46 owner companies worldwide with 10,000 rooms
or more.
• Some chains or parent companies own their own hotels.
• Owners may own hotels from a variety of different chains .
Philippine Owner Companies (by number of rooms) - optional
Owner Company
Total Props Total Rooms Chain Props Chain Rooms Indep. Props Indep. Rooms
5
2,389
Shangri-La Hotels and Resorts
5
2,389
Waterfront Philippines, Inc
5
1,328
Red Planet Hotels
4
695
4
695
New World Hospitality
1
598
1
598
Dusit Hotels & Resorts
1
538
1
538
The Ascott Group
2
509
2
509
The Peninsula Hotels
1
493
1
493
Berjaya Hotels & Resorts
1
212
1
212
Frasers Hospitality
1
89
1
89
Amanresorts International Pte Ltd
1
40
1
40
5
2,389
As of October 2014
Top Asia Pacific Owner Companies (by number of rooms) - optional
Owner Company
Shangri-La Hotels and Resorts
Prince Hotels
Apa Hotel Mgtco
Hilton
Greens Co., Ltd
Las Vegas Sands Corporation
Solare Hotels & Resorts
The Ascott Group
Okura Hotels & Resorts
Richmond Hotels
Kintetsu
Pan Pacific Hotels Group
Tourism Asset Holdings Limite
Kempinski Hotels & Resorts
Far East Consortium Int`l Lim
Fortress Real Estate (Asia) GK
Accor Australia New Zealand Hospitality
Rydges Hotels & Resorts
JR Kyushu
Grand Hotels International
Far East Hotels
Erawan Group
New World Hospitality
Centara Hotels & Resorts
Sunroute Hotel
Regal Hotels International Limited
Mori Trust
Oberoi Hotels & Resorts
ITC
Total Props
69
44
65
29
75
6
50
41
20
33
20
15
39
15
19
42
39
28
32
22
20
16
10
15
15
6
17
24
14
Total Rooms
30,859
15,726
13,973
12,716
10,917
7,975
7,902
7,255
6,366
6,345
6,029
5,697
5,589
5,554
5,500
5,426
4,956
4,875
4,816
4,580
4,207
4,092
3,932
3,925
3,894
3,890
3,759
3,655
3,615
Chain Props
69
44
65
29
51
3
49
38
18
31
14
15
32
15
18
42
37
26
31
22
2
16
9
15
15
6
5
22
14
Chain Rooms
30,859
15,726
13,973
12,716
8,365
2,220
7,831
6,863
5,474
6,090
4,831
5,697
5,165
5,554
5,215
5,426
4,782
4,716
4,522
4,580
640
4,092
3,648
3,925
3,894
3,890
1,909
3,557
3,615
Indep. Props
Indep. Rooms
24
3
1
3
2
2
6
2,552
5,755
71
392
892
255
1,198
7
424
1
285
2
2
1
174
159
294
18
3,567
1
284
12
2
1,850
98
As of October 2014
Owners with 3,500 rooms or more; both chain and non-chain managed
Top Global Owner Companies (by number of rooms) - optional
Owner Company
Host Hotels & Resorts
MGM Resorts
Hospitality Properties Trust
Caesars Entertainment
Archon Hospitality
Ashford Hospitality Trust
R L J Lodging Trust
Pandox
Xenia Hotels & Resorts
Louvre Hotels
FelCor Lodging Trust
Las Vegas Sands Corporation
Fattal Hotels
Sunstone Hotel Investors
InnVest Reit
Tsogo Sun
Apa Hotel Mgtco
Fiesta Hotel Company
Moor Park Capital Partners
JER Partners
TMI Hospitality
Summit Hotel Properties
Apple REIT Nine
LaSalle Hotel Properties
DiamondRock Hospitality Comp
Grand City Hotels & Resorts
The Ascott Group
Greens Co., Ltd
Atrium
Grupo de Turismo Gaviota SA
Highgate Hotels
Total Props Total Rooms Chain Props Chain Rooms Indep. Props Indep. Rooms
136
68,149
2
378
138
68,527
18
47,682
18
47,682
291
43,293
291
43,293
2
2,861
27
35,247
29
38,108
291
32,317
291
32,317
120
28,220
8
1,270
128
29,490
146
23,162
146
23,162
98
20,069
8
2,204
106
22,273
97
19,632
97
19,632
216
16,395
216
16,395
49
15,196
3
615
52
15,811
9
15,392
9
15,392
71
12,864
10
2,396
81
15,260
29
13,246
1
1,054
30
14,300
112
13,938
1
240
113
14,178
86
13,595
5
562
91
14,157
65
13,973
65
13,973
47
13,925
1
12
48
13,937
96
13,203
2
145
98
13,348
149
12,986
1
39
150
13,025
181
12,905
1
51
182
12,956
92
11,767
92
11,767
89
11,371
89
11,371
27
7,292
19
3,848
46
11,140
26
10,994
1
106
27
11,100
71
9,587
15
1,465
86
11,052
67
10,354
4
622
71
10,976
51
8,365
24
2,552
75
10,917
42
10,415
2
479
44
10,894
8
5,551
20
4,814
28
10,365
8
3,550
6
6,477
14
10,027
Owners with 10,000 rooms or more; no chain owners
As of October 2014
Owned by Felcor and
Managed by Aimbridge
Hospitality
Hilton Worldwide
owned and managed
Owned and managed
by Archon Hospitality
Asset Management Company - optional
• An Asset Management Company represents the owner in
the operation of a hotel.
• A hotel may have both a Management Company and an
Asset Management Company.
New “Quasi Chains” or “Soft Brands” - optional
• In recent years, several new chains have come into existence
that some would say are really a cross between a chain and a
marketing group for independent hotels. These chains have
been created to be able to bring hotels under a Parent
Company flag. The hotels can take advantage of the benefits
available from the Parent Company.
• The following chains might be considered to be examples of
this new phenomenon:
–
–
–
–
Autograph by Marriott
Luxury Collection by Starwood
Andaz by Hyatt
Ascend by Choice
Quiz Questions
1) Most of the entities below are classified as “Chains”. Which one is a “Parent
Company” consisting of multiple chains?
A. Hampton Inn
B. Courtyard
C. Starwood Hotels & Resorts
D. Holiday Inn Express
2) Which is a true statement about Parent Companies?
A. Parent Companies and the related chains have changed over time
B. Parent Companies must consist of no more than five chains
C. Parent Companies can only consist of chains in a single Scale
D. Parent Companies can only have hotels in a single country
3) What are the three different operation types?
A. Corporate, Managed, Independent
B. Managed, Franchise, Independent
C. Managed, Clustered, Independent
D. Corporate, Franchise, Independent
Quiz Questions continued
4) Which is a true statement about independent hotels?
A. Independent hotels are not affiliated with a specific chain
B. Chain hotels outnumber independent hotels in every country of the
world
C. Independent hotels are mostly Luxury Class hotels in Urban Locations
with more than 150 rooms
D. Independent hotels may never be managed by an outside entity
5) Which is a true statement about Management Companies?
A. Management companies have contracts where they receive payment for
their services and/or some portion of profits
B. Management companies may manage only one chain
C. Management companies will always own the hotels they manage
D. Management companies serve the exact same role as asset management
companies
Introduction to the Application Exercises
• There are sample Application Exercises at the end of each
section.
• Instructors can utilize these however they wish.
Instructors can select one exercise or use them all.
• The instructor can demonstrate one or more examples for
each application exercises in class to make sure that
students understand the steps.
• Instructors can have the students complete specific
exercises. Students can work in groups or by themselves.
Application 1 – Different types of players?
1. Find a recent article about a hotel company. (You can
check HotelNewsNow.com or another hotel-related
electronic news service or the internet.)
2. What type of hotel industry “player” is the company that
you have chosen (chain, parent company, management
company, owner or asset management company)?
3. Find other articles about other companies. Try to find
different types of players.
4. Are there companies or organizations that you find that are
not one of the five major types of affiliations?
Application 2 – More about the players?
1. Select a specific hotel industry player (chain, parent
company, management company, owner or asset
management company) or another “player” in the hotel
industry (association, tourism organization, developer,
consultant, Wall Street firm).
2. What can you find about the current goals, company
philosophy, number of hotels, number of staff, corporate
locations and history of this organization.
3. See if you can find articles (HotelNewsNow.com or similar)
with quotes from company representatives.
4. See if you can find out anything about the potential careerrelated opportunities that this company might offer.
Application 3 – Chain versus independent
hotels in countries around the world
1. Select a specific country somewhere in the world.
2. Obtain the STR Property and Room Count data for
your country (by Chain and Parent Company).
3. Determine the number of Chain versus Independent
hotels in your country and calculate the percentages
based upon number of rooms.
4. Determine the top chains in your country by number
of rooms.
5. Determine the top parent companies in your country.
Part 2 – Introduction to
Geographic and Non-geographic
Industry Categorizations
Major Geographic Categories
• The major geographic categories are:
– World
– Continent
–
–
–
–
Sub-Continent
Country
Market
Submarket or Tract
Continents and Sub-Continents
• STR defines these related to the hotel industry. (Little
different from the traditional seven continents.)
• There are 4 continents: Americas, Asia Pacific, Europe and
Mideast/Africa.
• Each continent includes three to four sub-continents.
• The STR definitions roughly correspond to the UNWTO
definitions when it comes to which countries are included in
each continent and sub-continent.
Americas – optional*
Caribbean
Anguilla
Antigua & Barbuda
Aruba
Bahamas
Barbados
Bermuda
British Virgin Islands
Cayman Islands
Cuba
Dominica
Dominican Republic
Grenada
Guadeloupe
Haiti
Jamaica
Martinique
Montserrat
Netherlands Antilles
Puerto Rico
St. Kitts & Nevis
St. Lucia
St. Vincent
Trinidad & Tobago
Turks & Caicos
US Virgin Islands
* Countries and subcontinents provided for general perspective (no need to memorize)
Central America
Belize
Costa Rica
El Salvador
Guatemala
Honduras
Nicaragua
Panama
North America
Canada
Mexico
Greenland
United States
South America
Argentina
Bolivia
Brazil
Chile
Colombia
Ecuador
Falkland Islands
French Guiana
Guyana
Paraguay
Peru
Suriname
Uruguay
Venezuela
Asia Pacific - optional
Central & South
Asia
Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka
Northeastern Asia
China
Japan
North Korea
South Korea
Mongolia
Taiwan
Southeastern Asia
Brunei
Cambodia
East Timor
Indonesia
Laos
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
Australia & Oceania
American Samoa
Australia
Cook Islands
Fiji
French Polynesia
Guam
Kiribati
Marshall Islands
Micronesia
Nauru
New Caledonia
New Zealand
Niue
Northern Mariana Islands
Palau
Papua New Guinea
Samoa
Solomon Islands
Tonga
Tuvalu
Vanuatu
Eastern Europe
Armenia
Azerbaijan
Southern Europe
Albania
Andorra
Western Europe
Austria
Belgium
Belarus
Bulgaria
Czech Republic
Georgia
Hungary
Kazakhstan
Kyrgyzstan
Poland
Moldova
Romania
Russia
Slovakia
Tajikistan
Turkmenistan
Ukraine
Uzbekistan
Bosnia and Herzegovina
Croatia
Cyprus
Gibraltar
Greece
Italy
Israel
Macedonia
Malta
Montenegro
Portugal
San Marino
Serbia
Slovenia
Spain
Turkey
France
Germany
Liechtenstein
Luxembourg
Monaco
Netherlands
Switzerland
Europe - optional
Northern Europe
Denmark
Estonia
Finland
Iceland
Ireland
Latvia
Lithuania
Norway
Sweden
United Kingdom
Note that Israel is in Southern Europe.
Middle East
Afghanistan
Bahrain
Iran
Iraq
Jordan
Kuwait
Lebanon
Oman
Qatar
Saudi Arabia
Syria
UAE
Yemen
Northern Africa
Algeria
Burkina Faso
Chad
Djibouti
Egypt
Eritrea
Libya
Mali
Morocco
Mauritania
Niger
Sudan
Tunisia
Southern Africa
Angola
Benin
Botswana
Burundi
Cameroon
Southern Africa (cont.)
Cape Verde
Central African Republic
Comoros
Congo
Cote d'Ivoire
Democratic Rep. of Congo
Equatorial Guinea
Ethiopia
Gabon
Gambia
Ghana
Guinea
Guinea-Bissau
Kenya
Lesotho
Liberia
Madagascar
Malawi
Mauritius
Mozambique
Namibia
Nigeria
Reunion
Rwanda
Sao Tome and Principe
Senegal
Seychelles
Sierra Leone
Somalia
South Africa
Swaziland
Tanzania
Togo
Uganda
Zambia
Zimbabwe
Mideast Africa - optional
Global Hotels by Continent and Sub-Continent - optional
Continent
Americas
Sub-Continent
Caribbean
Europe
Middle East & Africa
TOTAL WORLD
Rooms
1,861
222,580
913
57,340
North America
64,285
5,747,254
South America
3,435
360,278
Australia & Oceania
5,224
312,230
Central & South Asia
3,722
251,057
Northeastern Asia
14,680
2,498,819
Southeastern Asia
5,389
680,157
Eastern Europe
4,662
423,187
Northern Europe
12,510
870,004
Southern Europe
18,113
1,713,345
Western Europe
24,267
1,432,590
Middle East
1,471
253,797
Northern Africa
1,458
303,321
Southern Africa
2,428
183,205
164,418
15,309,164
Central America
Asia Pacific
Properties
As of October 2014
A complete list of countries with prop & room counts is available.
Countries
• STR uses the UNWTO definition when it comes to
recognizing countries.
• There are over 200 countries with one or more hotels.
• There are over 40 countries with 50,000 rooms or more.
Top Countries in the World (by number of rooms) - optional
Country
United States
China
Germany
Spain
United Kingdom
Japan
France
Canada
Italy
Mexico
Turkey
Australia
India
Indonesia
Brazil
Greece
Thailand
Egypt
Malaysia
Portugal
United Arab Emirates
Netherlands
Switzerland
Russia
Austria
Room Revenue – 12 Month Ending October 2014
Properties
53,242
11,083
9,592
4,728
8,405
2,997
7,699
7,613
6,677
3,426
1,566
4,143
3,323
2,345
1,622
1,922
1,118
609
552
1,368
551
1,987
2,382
707
1,685
Rooms
4,964,356
1,859,380
586,946
585,049
531,520
526,337
472,173
434,789
376,530
347,819
246,720
244,407
214,360
211,324
210,485
170,993
170,271
158,907
121,148
115,766
110,102
107,781
106,580
102,830
101,683
Room Revenue
$130,699,814,694
$40,874,743,247
$18,724,960,459
$17,683,105,944
$20,413,638,941
$19,160,859,919
$26,016,960,319
$11,769,676,152
$14,627,587,117
$9,613,668,025
$7,956,809,141
$10,964,803,968
$4,213,187,677
$4,336,893,978
$6,237,500,726
$5,559,845,325
$4,434,514,519
$1,840,957,573
$3,420,950,261
$2,954,360,956
$6,144,195,588
$3,691,155,187
$6,415,099,380
$2,740,010,122
$3,364,213,464
Markets
• Market is one of the most important geographic categories
below Country, especially for a hotel General Manager.
• Markets are created based upon the number of hotels in an
area and the participation.
• Markets are commonly thought of as cities (metro markets),
although they are also used to represent more rural areas
outside of the major cities (non-metro markets).
• In some countries, there may be a large number of markets.
In other countries, especially developing areas, there may be
just a small number of markets.
Sample Markets in the U.S. State of Tennessee
(the logic is similar everywhere in the world)
• For example, in the state of Tennessee, there are four metro markets:
–
Memphis
–
Nashville
–
Knoxville
–
Chattanooga
• And one non-metro market for everywhere else – Tennessee Area.
Worldwide Markets
• Countries contain varying numbers of markets. Markets are
based upon the number of hotels and the participation.
• Smaller countries may consist of just a single market.
• Countries that are slightly larger may consist of a market for
the major city and then a second market for all of the other
hotels, named something like “Country Name Area”.
• Countries that are larger may consist of markets for several
major cities and then an additional market for all other hotels.
• Larger countries will have many markets. Countries like the
U.S. have over one hundred.
• No market will ever cross country boundaries.
Examples of Markets in Select Countries - optional
Canada*
United Kingdom
China
Atlantic Provinces
Greater London
Beijing
Montreal
Southeast England
Shanghai
Quebec
Southwest England
North China excluding Tianjin
Toronto
East England
East China excluding Hangzhou
Ontario East
East Midlands
Northeast China
Ontario Southwest
West Midlands
South Central China
Ontario North
Northwest England
Hong Kong SAR
Ontario Central
Yorkshire & Humberside
Western China
Saskatchewan/Manitoba
Northeast England
Hainan
Alberta
Scotland
Hangzhou
Vancouver
Wales
Shenzhen
British Columbia Other
Northern Ireland
Tianjin
Northern Canada
Henan
*Aligned with “Statistics Canada”
Guangzhou
Sanya
Canada
United Kingdom
China
U.S. Markets (sample country) - optional
STR uses internal 6-digit market numbers
Top 35 WW Metro Markets (based on number of rooms) - optional
Market
Beijing, China
Shanghai, China
Las Vegas, USA
London, United Kingdom
Orlando, USA
New York, USA
Chicago, USA
Washington DC, USA
Tokyo, Japan
Los Angeles/Long Beach, USA
Atlanta, USA
Guangzhou, China
Dallas, USA
Houston, USA
Bangkok, Thailand
Dubai, United Arab Emirates
Paris, France
Shenzhen, China
Hong Kong, China
Berlin, Germany
Sao Paulo, Brazil
Phoenix, USA
San Diego, USA
Hangzhou, China
Singapore, Singapore
Anaheim/Santa Ana, USA
San Francisco/San Mateo, USA
Boston, USA
Miami/Hialeah, USA
Barcelona, Spain
Quebec, Canada
Madrid, Spain
Philadelphia, USA
Jakarta, Indonesia
Tampa/St Petersburg, USA
Properties
1,275
1,246
379
1,322
481
623
729
691
448
992
790
476
626
786
346
351
1,047
365
207
636
437
445
473
365
251
432
396
355
382
521
1,198
391
381
272
452
Rooms
Participation*
219,188
37%
212,969
37%
171,065
16%
123,007
68%
121,187
62%
112,816
85%
109,743
89%
107,161
95%
99,147
41%
97,863
77%
93,911
83%
82,270
26%
78,695
81%
76,106
81%
75,005
45%
70,343
72%
67,384
22%
67,083
35%
65,272
52%
64,273
55%
61,606
42%
61,168
87%
59,645
85%
58,447
30%
57,168
64%
54,753
80%
51,421
84%
51,115
92%
49,086
80%
48,675
40%
48,346
22%
48,231
49%
46,272
89%
46,026
40%
45,035
75%
As of October 2014
* Participation
refers to hotels
that submit
performance
data to STR,
based upon
number of
rooms. This
varies on a
market-bymarket basis.
Submarket or Tract
• A Submarket is a geographic subset of a Market.
• The term “Submarket” is used outside of North America,
while the term “Tract” is used in North America.
• Submarkets, like Markets are affected by hotel participation.
They are reviewed annually to determine if new submarkets
may be created based on growth in available supply and
sample.
• The Submarket category, like the Market category is very
important, especially for hotel GMs. Hotel data is often
displayed at the Market and Submarket level.
Submarkets – More Info
• Submarkets are geographic sub-divisions of a market.
There may be anywhere from two to ten or more
submarkets in a market.
• In a metro market, there is usually a submarket for the CBD
(Central Business District).
• There may be other submarkets in a city identified such as
North/South/East/West, or Airport/Beach, or they may
have names for suburban neighborhoods.
• In non-metro (rural) markets, a submarket may represent a
small city.
Sample Submarkets in the State of Tennessee (logic similar everywhere)
• In the state of Tennessee here are the Submarkets in each Market:
– Memphis:
Memphis CBD, Memphis Airport/South, Memphis East,
Memphis West (4)
– Nashville:
Nashville CBD, Nashville Airport, Nashville I-65 North,
I-24/Murfreesboro, Brentwood/Franklin, Nashville Other
Areas (6)
– Knoxville:
Knoxville, Knoxville Area, Gatlinburg/Pigeon Forge (3)
– Chattanooga:
Chattanooga, Chattanooga Area (2)
– Tennessee Area:
Bristol/Kingsport, Clarksville, East, Central, West Area (5)
Philippine Submarkets (sample country)
Submarket
Properties
Rooms
Regional Philippines
140
11,686
62.5% 5,407.60
14,263,151,377
Manila
131
26,342
67.2% 5,578.60
35,606,721,861
59
8,727
67.6% 4,923.20
10,600,091,057
Cebu Metro
Occupancy
ADR*
Room Revenue**
Occ , ADR & Room Revenue - 12 Month Ending October 2014
*Note the average ADR differences. **ADR and Room Revenue in Pesos
Revisions to Markets and Submarkets
• STR makes small revisions to markets and submarkets on a
regular basis.
• The changes are based upon:
– Supply (new hotels opening)
– Participation (new hotels submitting performance data)
– Client feedback
• Most revisions are made at the end of the year, after
December STAR Reports and before January STAR Reports.
A smaller amount of changes, related to increased
participation, are made in July at the half year point.
• Companies are notified of these changes.
Non-Geographic Categories
• In addition to geographic categories such as Market
and Submarket, the hotel industry uses additional
categorizations that are not related to geography.
• The two most important non-geographic categories
for someone like a general manager are:
– Scale
– Class
Scale
• The Scale category is one of the most popular ways the
industry looks at different hotels.
• There are seven Scale categories, six for chain hotels
ranging from Luxury to Economy, and one Scale category for
all Independent hotels.
• Check the average ADRs of the different scale groups on the
next two slides. Note that in the Philippines they will range
from Luxury (with an average over 7,400 pesos) down to
Economy (with an average close to 3,000 pesos).
• The average ADR of the Independent Scale group
(independent hotels) in the Philippines is close to 5,600
pesos.
Philippine Scales (sample country)
Scale
Properties
Rooms
12
4,205
68.7% 7,846.50
8,989,231,159
Upper Upscale Chains
9
2,957
71.8% 5,371.40
4,161,149,261
Upscale Chains
8
2,669
64.9% 5,211.30
3,154,922,270
Upper Midscale Chains
15
2,876
66.5% 3,598.00
2,385,049,692
Midscale Chains
14
1,391
59.7% 2,120.00
646,263,492
Economy Chains
22
2,461
67.1% 2,934.90
1,528,924,173
250
30,196
66.6% 5,586.10
40,674,245,267
Luxury Chains
Independents
Occupancy
ADR*
Room Revenue**
Occ , ADR & Room Revenue - 12 Month Ending October 2014
*Note the average ADR differences. **ADR and Room Revenue in Pesos
Global Scales
Scale
Properties
Luxury Chains
1,891
497,816
66.5%
$282.10
$33.6B
Upper Upscale Chains
4,843
1,312,514
70.1%
$165.01
$54.9B
Upscale Chains
10,893
1,821,846
69.9%
$124.24
$56.8B
Upper Midscale Chains
14,705
1,680,230
66.0%
$101.80
$40.7B
Midscale Chains
11,550
1,105,056
60.9%
$78.75
$19.3B
Economy Chains
19,027
1,642,381
62.2%
$56.05
$20.7B
100,924
7,216,157
61.5%
$123.93
$19.9B
Independents
Rooms
Occupancy
Occ , ADR & Room Revenue - 12 Month Ending October 2014
**ADR and Room Revenue is in US dollars
ADR**
Room Revenue**
Scales and Consistency
• When a chain is categorized in a specific Scale group, that
means every hotel in that chain is in that Scale group
everywhere in the world, in every country and market.
• For example, the Ritz-Carlton chain is in the Luxury Scale
group. That means every Ritz-Carlton hotel in the world
will be a Luxury Scale hotel.
• For a second example, the Holiday Inn chain is in the Upper
Midscale group. That means every Holiday Inn will always
be an Upper Midscale hotel, even though in some parts of
the world a single Holiday Inn might be much nicer than a
typical Upper Midscale hotel.
How do Chains get grouped into Scales?
• Chains are positioned in Scale groups based upon ADR, not
upon subjective criteria such as features or amenities.
• At the beginning of every year, STR subtotals all the hotels
in the world by chain and calculates the average ADR per
chain based upon the annual data for the prior year.
• Chains are sorted by the ADR amount from high to low.
Breakpoints are determined between the different Scale
groups. These breakpoints may move up and down slightly
from year to year.
• Sometimes a chain will move up or down to the next higher
or lower Scale group.
Which Chains are currently in which Scale
groups?
• There are lists that follow that show which Chains are in
which Scale groups.
• It is possible to obtain a similar list for a specific country or
another area of the world.
• It is important to have a general perspective of which
chains are in which Scale groups. No need to memorize.
Global Luxury Chains (with 25 or more properties sorted by room count) – optional
Chain
Properties
Rooms
InterContinental
178
60,191
Shangri-La Hotel
70
29,281
114
28,248
Fairmont
69
28,010
JW Marriott
65
27,785
Ritz-Carlton
85
24,882
Grand Hyatt
41
22,202
Four Seasons
92
20,098
Kempinski Hotels
73
19,918
Luxury Collection
85
16,793
W Hotel
45
12,996
Conrad
26
8,381
Mandarin Oriental Hotel Group
28
8,162
Daiwa Royal Hotels
26
7,013
St Regis
30
6,584
Park Hyatt
33
6,567
Taj Group
41
5,863
Hipotels
27
5,282
Anantara
31
3,590
Orient Express
31
3,202
Amanresorts International Pte Ltd
26
815
Sofitel Luxury Hotels
As of Year-End 2013
Global Upper Upscale Chains (with 25 or more properties sorted by room count) - optional
Chain
Properties
Rooms
Chain
Properties
Rooms
Hilton
554
195,410
Kimpton
59
10,966
Marriott
488
174,764
Delta Hotels
39
10,119
Sheraton Hotel
435
153,911
Steigenberger Hotels
49
9,227
Hyatt
190
81,226
Sonesta Hotel
34
8,305
Westin
198
76,279
Rotana
27
7,428
Radisson Blu
260
60,910
Pestana
46
6,838
Renaissance
154
51,950
Frasers Hospitality
43
6,823
Embassy Suites
215
51,707
Southern Sun - Sun Hotels
34
6,409
Wyndham Hotels
99
27,923
MGallery Hotel Collection
51
5,311
Le Meridien
98
27,152
Sun International
28
4,832
Pullman
80
23,653
Exclusive Hotels
120
4,613
Omni
50
20,192
Hoteis Othon
30
4,340
Millennium Hotels
48
16,483
Joie De Vivre
27
3,883
Hotel Nikko
39
13,537
Vivanta by Taj
28
3,844
Autograph Collection
54
11,320
Marriott Executive Apartments
26
3,641
Swissotel
30
11,285
Serena Hotels
33
2,846
As of Year-End 2013
Global Upscale Chains (with 25 or more properties sorted by room count) – optional
Chain
Courtyard
Crowne Plaza
DoubleTree
Mercure Hotels
Hilton Garden Inn
Residence Inn
Novotel Hotels
N H Hotels
RIU Hotel
Homewood Suites
Springhill Suites
Radisson
Disney Hotels
Four Points
Scandic Hotel
Melia
Iberostar Hotels & Resorts
Hyatt Place
Staybridge Suites
Club Med
Moevenpick
Best Western Premier
Prince Hotels
Maritim
aloft Hotels
Apa Hotel
BTG-Jianguo Hotels & Resorts
Ascend Collection
Rica Hotels
Jin Jiang Hotel
H10 Hotels
Thon Hotels
Jinling
Sokos Hotel
Properties
953
389
366
696
581
652
408
321
100
333
308
168
30
180
150
88
84
192
196
72
73
159
45
49
79
61
45
118
79
39
38
64
37
49
Rooms
140,537
108,367
92,447
86,311
79,878
79,243
76,891
49,436
40,355
36,778
36,172
34,867
32,863
32,519
29,099
28,179
27,852
25,572
21,518
21,407
18,948
18,488
15,902
14,906
13,425
13,308
12,390
11,283
11,092
11,092
10,902
9,854
9,713
9,278
Chain
AC Hotels by Marriott
Quest Serviced Apartments
Hyatt House
Park Plaza
Hotel Husa
Dorint Hotels & Resorts
Grand Mercure
Copthorne Hotels
Eurostars Hotel
Hesperia Hoteles
Thistle Hotels
First
Hotel Indigo
Swiss-Belhotel International
Paradores
Oaks Hotels & Resorts
Austria Trend Hotels & Resorts
Silken Hoteles
Outrigger
Lindner Hotels, Inc
Clarion Collection
Macdonald Hotels
Coast Hotels & Resorts Canada
Hampshire
abba
Adina
OREA Hotel
Hoteles Estelar
Peppers Hotels
Three Cities Hotel Group
Oxford Hotels & Inns
EuroAgentur Hotel
Hampshire Classic
Properties
77
155
58
38
74
41
41
34
64
41
33
50
55
43
92
43
29
33
26
31
45
44
27
51
25
27
29
25
28
35
34
38
25
Rooms
8,656
8,616
8,155
8,149
8,033
7,323
7,222
7,072
6,798
6,533
6,475
6,219
6,200
6,115
5,934
5,899
5,132
4,874
4,863
4,774
4,226
3,852
3,530
3,130
3,032
2,930
2,775
2,335
2,163
2,117
1,651
1,537
957
As of Year-End 2013
Global Upper Midscale Chains (with 25 or more properties sorted by room count) - optional
Chain
Properties Rooms
Chain
Properties
Holiday Inn
1,188
217,910
Wyndham Garden Hotel
61
Holiday Inn Express Hotel
2,256
214,246
Iberotel Hotels
27
Comfort Inn
1,619
121,672
Tulip Inn Hotel
Hampton Inn
Best Western Plus
Hampton Inn & Suites
Fairfield Inn
Comfort Suites
Clarion
Country Inn & Suites
Park Inn
Golden Tulip
Ramada Plaza
Quality
Barcelo Hotels
TownePlace Suites
Comfort
Tryp by Wyndham
Washington Hotel
Drury Inn & Suites
Days Hotels
Sunroute
Van der Valk Hotels
Protea Hotel
Leonardo Hotels
1,254
1,116
684
710
606
278
475
130
173
101
212
70
224
205
109
54
74
68
66
77
109
50
120,159
100,164
70,583
65,107
47,515
40,661
38,220
24,771
24,149
23,993
23,569
22,818
22,182
20,167
15,299
14,333
11,445
10,968
10,329
9,965
9,658
8,691
Citadines
Jurys Inns
City Express
Mantra
Somerset Hotels
Ringhotels
Adagio City Aparthotel
Rydges Hotels & Resorts
Sandman Hotels & Inns
Richmond Hotels
G S M Hoteles
TOP International Hotel
FX Hotels Group
Hunguest
Xanterra Parks & Resorts
Lexington
Cumulus
TOP City & CountryLine
Village Urban Resorts
Home2 Suites by Hilton
Bastion Hotels
Sweden Hotels
Rooms
8,550
8,047
85
7,905
59
32
63
54
40
122
58
36
43
31
37
43
39
25
25
29
27
32
25
27
31
57
7,551
7,530
7,336
7,314
7,211
6,923
6,832
6,742
6,417
6,090
5,227
4,906
4,722
4,274
4,188
3,542
3,537
3,464
3,103
2,928
2,855
2,589
As of Year-End 2013
Global Midscale Chains (with 25 or more properties sorted by room count) - optional
Chain
Best Western
Properties
Rooms
Chain
Properties
Rooms
2,783
198,068
Catalonia
50
7,541
970
120,801
Dormy Inn
43
7,064
1,364
113,730
InterCityHotel
35
6,049
Ramada
728
89,795
Aston International
38
5,982
La Quinta Inns & Suites
833
83,612
Grupotel
34
5,435
Howard Johnson
242
29,858
Villages Hotel
63
4,729
Candlewood Suites
311
29,695
Sercotel Hotels
57
4,467
Sleep Inn
394
28,815
Shilo Inn
35
3,809
Baymont Inn & Suites
330
27,216
TREFF Hotels
41
3,738
Campanile Hotel
392
25,891
MainStay Suites
45
3,549
64
22,173
Chisun Inn
31
3,541
Vienna Hotel
104
17,898
Vagabond Inn
40
2,905
ibis styles
168
16,159
Kibbutz Hotels
32
2,861
Wingate by Wyndham
160
14,643
ACHAT Hotels
26
2,807
Kyriad
224
12,923
Fletcher Hotels
60
2,725
AmericInn
201
11,725
Oak Tree Inn
30
2,210
Super Hotel
99
11,307
BreakFree Resort
26
1,930
Red Lion
53
9,220
Sarovar Portico
29
1,877
Hawthorn Suites by Wyndham
92
9,205
P`tit Dej Hotel
37
1,397
Fiesta Inn
59
8,527
WelcomHeritage
38
916
Daiwa Roynet Hotels
36
7,935
Hotel ibis
Quality Inn
Sol
As of Year-End 2013
Global Economy Chains (with 25 or more properties sorted by room count) – optional
Chain
Properties Rooms
Super 8
2,352 150,181
Days Inn
1,761 137,385
Motel 6
1,081 102,589
Home Inn
810 92,944
JinJiang Inns
718 89,877
Extended Stay America
640 70,595
Premier Inn
677 55,872
Econo Lodge
917 54,773
Americas Best Value Inn
888 52,557
Toyoko Inn
241 46,622
7 Days Inn
406 42,749
ibis budget
432 41,231
Travelodge, UK
510 38,177
Red Roof Inn
360 37,080
Travelodge
435 32,503
Hanting
227 26,720
Rodeway Inn
443 25,221
Knights Inn
386 23,640
Motel 168
120 23,536
Microtel Inn & Suites by Wyndham
313 22,379
Value Place
185 22,093
GreenTree Inns
172 18,611
InTown Suites
138 17,974
Hotel F1
238 17,898
Hotel Premiere Classe
252 17,748
Howard Johnson Express
212 16,095
Chain
B&B Hotels
Motel One
Best Hotels
Studio 6
Suburban Extended Stay Hotels
Balladins
JI Hotels
Red Carpet Inns
Budget Host
Crossland Suites
America`s Best Inns
GuestHouse Inns
Tune Hotels
Bestay Hotel Express
Hotel Formule 1
Country Hearth Inn
Scottish Inns
Starway
Sun Suites Hotels
Ginger Hotels
Shindom Inn
Old English Inn
Hotel Climat
National 9
Innkeeper`s Lodge
Good Night Inns
Properties Rooms
178 13,910
46 10,245
44
9,070
76
8,187
65
7,327
130
7,284
54
7,243
120
6,472
152
5,811
43
5,584
94
5,536
69
5,356
33
5,152
69
4,938
65
4,900
75
4,802
116
4,461
31
3,408
25
3,254
29
2,812
26
2,344
56
1,510
29
1,424
25
973
44
741
32
721
As of Year-End 2013
The “Class” Category
• The Class category is similar to Scale. The names of the
categories are the same, but there is no “Independent”
Class group. So there is only 6 Class categories, instead of
the 7 Scale groups.
• Independent hotels are slotted into the Scale categories
(Luxury through Economy) at similar ADR levels.
• Chain hotels are always in the same Class as Scale. So the
Ritz-Carlton from before will always be in the Luxury Class
group since it is in the Luxury Scale group.
• Class is used globally, but is especially popular outside of
North America where there are more independent hotels.
Grouping Independent hotels into Classes
• Here is some more information regarding the
methodology that is used to slot the independent hotels
into the Class groups.
• On a country-by-country basis, or in the case of major
markets, a market-by-market basis, the ADRs of
participating chain hotels are analyzed and breakpoints
are created between the different Scale groups.
• The independent hotels are then combined into the
different groups based upon the ADR of the independent
property compared to the chain hotels.
• This is done at the beginning of the year based upon
annual data for the prior year.
How Independent Hotels are Slotted by Class
Market
Luxury Chains
Annual 2013 ADR Range 6,660-9,324 PHP
Independent Hotel
Upper Upscale Chains
Annual 2013 ADR Range 4,884-6,659 PHP
Acme Hotel
2014 Annual ADR
5,550 PHP
Upscale Chains
Annual 2013 ADR Range 3,996-4,883 PHP
Because the hotels
rate falls within the
Upper Upscale rate
range of 4,884 to 6,659
they are slotted as
Upper Upscale Class
Upper Midscale Chains
Annual 2013 ADR Range 2,886-3,995 PHP
Midscale Chains
Annual 2013 ADR Range 2,220-2,885 PHP
Economy Chains
Annual 2013 ADR Range 1,332-2,219 PHP
Importance of the “Class” Category
• Class is relied upon heavily, especially outside North
America.
• Non-North American STAR reports compare a subject
hotel to the Market or Submarket/Tract Class, in
addition to the competitive set . Depending upon
participation, the Class groups may be “Collapsed” or
combined as follows: Luxury and Upper Upscale, Upscale
and Upper Midscale, or Midscale and Economy.
• North American STAR reports compare the subject hotel
to the Market Class (all the hotels in the same Market
and Class) along with other industry segments.
Philippine Hotels by Class
Class
Properties
Rooms
Occupancy
ADR**
Room
Revenue**
Luxury Class
34
7,753
67.8%
7,382.50
14.8B
Upper Upscale
Class
36
5,911
71.7%
5,234.70
8.1B
Upscale Class
28
6,675
66.4%
4,986.80
7.9B
Upper Midscale
Class
97
13,596
61.2%
3,551.30
10.7B
Midscale Class
64
6,291
59.7%
2,119.90
2.9B
Economy Class
71
6,529
67.3%
2,939.30
4.4B
Occ , ADR and Room Revenue – 12 Month Ending October 2014
**ADR and Room Revenue is in Pesos
Global Hotels by Class
Class
Luxury Class
Properties
Rooms
Occupancy
ADR**
Room
Revenue**
6,062
942,423
66.4%
$277.98
$62.7B
Upper Upscale
Class
12,249
2,062,177
69.4%
$165.44
$85.4B
Upscale Class
23,650
3,012,886
69.0%
$125.08
$93.9B
Upper Midscale
Class
29,133
2,964,599
65.5%
$102.18
$71.6B
Midscale Class
32,291 2,2672,117
60.8%
$83.07
$48.9B
Economy Class
60,448
60.3%
$60.95
$48.2B
3,621,798
Occ , ADR and Room Revenue – 12 Month Ending October 2014
**ADR and Room Revenue is in US dollars
Additional Non-geographic Categories - optional
• In addition to the Scale and Class, STR tracks several other
non-geographic categories, including:
– Location
– Extended Stay
– Boutique – very popular recently
– Destination Resort
– Additional Hotel Types such as All Inclusive, All Suite,
B&B/Inn, Condo, Conference, Convention, Corporate
Housing, and Timeshare
– Hotel Ratings – generally inconsistent in most parts
of the world
Quiz Questions
6) Which is a true statement regarding geographic categorization?
A. STR geographic categories are limited to North America
B. STR uses the UNWTO definitions when it comes to recognizing countries
C. General managers of hotels do not need to know geographic categories
D. The hotel industry uses seven continents to categorize hotels
7) Which is a true statement regarding markets?
A. Markets include hotels that are in big cities, not rural areas
B. A country would never have more than 100 markets and never have less than
2 markets
C. No market will ever cross country boundaries
D. There is another name for Markets outside the U.S.
8) In descending order of geographic size, which option below is correct?
A. Continent, Sub-Continent, Country, Submarket, Market
B. Continent, Country, Sub-Continent, Submarket, Market
C. Continent, Sub-Continent, Market, Country, Submarket
D. Continent, Sub-Continent, Country, Market, Submarket
Quiz Questions continued
9) Which two geographic categories are the most important for a hotel GM?
A. Region and Market
B. Market and Submarket
C. Region and Submarket
D. Country and Submarket
10) Markets and tracts are created based on what two determining factors?
A. Geographic size and population
B. Geographic size and participation
C. Number of hotels and participation
D. Number of hotels and population
11) Which is a true statement regarding Tracts
A. Tracts are referred to as Submarkets outside of North America
B. Tracts are never used to represent a small city in a rural market
C. Tracts are geographic sub-divisions of a Region
D. A country will never have more than 100 Tracts
Quiz Questions continued
12) Changes to how Markets and Submarkets are geographically defined are made
how often?
A. Monthly
B. Annually
C. Every five years
D. No regular schedule
13) Which two non-geographic categories are the most important for a hotel GM?
A. Scale and Class
B. Scale and Location
C. Location and Type
D. Class and Type
14) How many Scale categories are there compared to Class categories?
A. 6 Scale categories and 6 Class categories
B. 6 Scale categories and 7 Class categories
C. 7 Scale categories and 6 Class categories
D. 7 Scale categories and 7 Class categories
Quiz Questions continued
15) Which one of the following is an accurate statement regarding Scale and Class
groups and a single chain?
A. A Ritz Carlton hotel in the US can be in one Scale group and a Ritz Carlton
hotel in Japan can be in a different Scale group
B. A Ritz Carlton hotel in the US can be in one Class group and a Ritz Carlton
hotel in Japan can be in a different Class group
C. A Ritz Carlton hotel will always be in the same Scale and Class groups in
every country throughout the world
D. Ritz Carlton may choose which Scale and which Class they are in
16) Which one of the following is an accurate statement regarding Class groups?
A. The names of the Class group are very different than the names of the Scale
groups
B. Class groups are more popular and relevant in North America rather than
outside North America
C. Independent hotels are slotted into Class groups based upon the ADR of the
independent hotel compared to the chain hotels in the same market
D. Once an independent hotel is slotted into a Class group, it will never change
Application 4 – Categories for a Hotel
1. Obtain the STR Hotel Census Database for your country (or state).
Contact the STR SHARE Center for assistance.
2. Select a specific hotel and then determine all of the various
categories for your hotel (geographic and non-geographic groups).
3. What are the major geographic categories: continent,
subcontinent, country, market, and tract/submarket? What
additional categories (region or state/province if applicable)?
4. What are the non-geographic categories: scale, class? What is the
location category? Is the property any special type of hotel
(boutique, extended stay, destination resort)? Does the hotel
offer any special amenities?
5. What else can you tell about the hotel from the Census database?
Application 5 – Categories for a Market,
starting a “Market Study”
1. When industry professionals conduct a “market study”, the goal
is to learn about the hotel industry in a particular area, such as a
country or city (or state).
2. An important part of a good “market study” is size and structure
information about the market related to the various geographic
and non-geographic categories.
3. Select a specific area such as a country or city.
4. Obtain “Property and Room Count” data for your area to help
drill down into all of the various categories below the area that
you choose. You can obtain this data from STR for any area of
the world.
Application 5 – “Market Study” continued
5. Identify the markets and tracts/submarkets within the area that
you have selected. How many hotels are in each geographic
category?
6. Determine the number of hotels in each Scale and Class
Category. You can also do this for Chain, Location, and Extended
Stay group.
7. You could check the Census database for your area and
determine if there are any special type hotels (Boutique,
Destination Resorts, Conference, …)
8. Summarize this information. What observations can you make
about the area that you are studying?
Application 5 – Market Study, Next Step
9. The Market Study that you started in this application
contained size and structure information about your area.
Keep this so that you can add more data to it at the end of the
training.
10. Later you will learn about various industry reports that contain
different types of data related to an area.
11. For example you can obtain a Trend Report for your area, that
contains performance information (such as Year-to-Date or
Annual Occupancy and ADR).
12. This type of data can be included in a market study to show
how various hotels in your area are performing. More
information will be provided at the end of the training.
Part 3 – Introduction to
Benchmarking in the
Hotel Industry
Intro to Benchmarking in the Hotel Industry
• What is “benchmarking”?
• Levels of benchmarking: Property, Corporate and Tourism
organizations
• Competitive set key questions: What, Why, Who and When
• Creating Comp Sets – the Four P’s
• Rules for Comp Sets
• Changing Comp Sets
• Additional comp sets
Benchmarking 101: my hotel vs. the competition
20%
20%
10%
7%
0%
YOY Change
YOY Change
15%
10%
0%
-3%
-10%
-10%
-20%
-20%
-10%
Manager A
Manager B
A's Competitors
B's Competitors
Benchmarking in the Hotel Industry
• Individual hotels compare their performance to the
performance of a “competitive set” of hotels.
• Individual hotels can also compare their performance to
hotels in pre-defined industry segments near their hotel, for
example the market or submarket where they are located.
• Companies compare their own properties to a variety of
comparative groups of hotels to gauge the performance of
their portfolio.
• Tourism organizations also compare their local area to
“comparable” markets.
What is a “Competitive Set”?
• A competitive set is a group of hotels used primarily for
comparison against a subject property for performance
benchmarking purposes.
• The properties that comprise a comp set are competitive in
nature; competing for the same guests and sharing similar
qualitative and quantitative features.
How are Comp Sets used?
• Comp sets have an impact on several functions of a hotel
from the day-to-day operations to managerial and top-level
decisions.
• Comp set uses include, but are not limited to the following:
– Compare to the subject property for performance
benchmarking purposes
– Aide the sales and marketing department
– Use in management contracts for performance requirements
(often determines the amount of compensation managers
receive)
– Use for internal and external analysis
Why are Comp Sets needed?
• Historically, hoteliers have relied on each other for
performance information (price, quality, quantity etc.).
• Hotel staff would perform “call arounds” where they would
talk to staff from competitive hotels.
• They might also count cars in parking lots or windows with
lights on.
• There is no way of assuring whether entities are being honest
with each other, or whether their information is pertinent or
relevant to that of the seekers.
Why Comp Sets? - continued
• In the late 1980s, STR began collecting performance data
from hotels and coined the term “comp set” within the hotel
industry. STR essentially became a reliable place for hotels to
get accurate aggregate information about their set of
competitors.
• “Aggregating” means finding the averages based on the data
from a group of hotels so that each individual hotel is
protected from exploitation of their specific data.
• No individual property data is ever disclosed to another
property.
Who chooses the Comp Set?
• For a small independent hotel it may be easy. The hotel
owner may choose the comp set by themselves.
• For a larger hotel or a chain hotel, there are many
stakeholders when it comes to choosing a comp set:
–
–
–
–
the Management Company
the Chain (corporate staff)
the GM
the sales and marketing team
• The selection process becomes important because often,
especially in the case of a chain hotel, the GM’s bonus is
related to the performance of the hotel compared to the
comp set.
Why don’t I just choose a comp set that I can
easily beat? – great question
• It would certainly be a temptation to choose a comp set that
a hotel could easily beat (a “dog” comp set with lower
occupancies and ADRs).
• Since there are financial implications, corporate staff are
going to ensure that the comp set is accurate.
• Then you also have to define “beat”. What does that really
mean and how do companies measure that?
• We will see later in the training, that an accurate comp set is
really in the best interest of the subject hotel and that most
GMs actually benefit from having tougher comp sets.
Key Considerations When Creating Comp Sets
• When it comes to deciding upon a competitive set, you can
think of the four “P”s.
• Participation – You obviously want hotels that submit data to
STR.
• Proximity – Normally, your competitors will be relatively close
to your hotel.
• Pricing – In most cases, your competitors will have similar
prices to your hotel
• Product – Your competitors will generally be similar to your
hotel when it comes to features and amenities.
Key Considerations - Participation
• You obviously don’t want hotels in your comp set if they don’t
submit data to STR. You can request “Participation Lists” which
show basic hotel attribute information and participation details.
• Remember that participation can mean four different types of
data:
• Monthly – this is usually the default
• Daily – most hotels submit daily data each day or each week
• Segmentation – many hotels submit Rooms Sold and
Revenue broken down by Transient, Group, and Contract
• Additional Revenue – some hotels submit Food & Beverage
and Other Revenue in addition to Room Revenue
Key Considerations - Proximity
• You can obtain a list of potential competitors from STR with
specific fields that indicate the proximity related to your hotel.
• Distance – from the competitor to the subject hotel.
• Market and Submarket - These categories will help you identify
hotels that are geographically close to the subject hotel.
• You can also check other geographic fields such as City,
Zip/Postal Code, County.
• Location – This field can help show clusters of hotels related to
some other entity, such as an airport, a downtown area, or a
beach or resort area.
Key Considerations - Pricing
• On the list of competitors there will be several fields that
provide some indication of the price level of the competitors.
• Scale – If you are a chain hotel, the Scale category will help to
identify similar chain hotels. It is not uncommon to look for
competitors in one scale category above or below the subject.
• Class – The Class Category will help to identify independent
hotels that are in a similar category as the subject hotel.
• Fields such as Rack Rates (public info gathered through surveys)
and Price Level can help provide some indirect pricing
information.
• Price-related information can also be found on the internet.
Key Considerations - Product
• There are other fields that will describe the features of hotels.
• Number of Rooms – In most cases the members of a Comp Set
should be somewhat similar in size to the Subject hotel. Size is
somewhat reflective of the type of business.
• Open Date – The age of the hotel can help when considering Comp
Set members.
• Hotel Type – These fields (Boutique, Extended Stay, Convention,
All-Suites, …) can help to identify hotels similar to the subject.
• Meeting Space – Compare these values for possible competitors.
• Amenities – Check these fields (Restaurant, Spa, Waterpark,
Oceanfront, …) to help indentify similar hotels.
Key Considerations - Weighting
• When you are analyzing the various attributes of potential
competitors related to Participation, Proximity, Pricing, and
Product; careful consideration does need to be given to the
weight of each of these attributes.
• One person may put a much higher priority on Proximity than
Pricing, and another person might put a higher priority on
Product over both of these. Depending upon your situation,
you may need to sacrifice in one area or another.
• Later in this section, we will talk about the fact that a hotel
might have multiple comp sets. One of the obvious advantages
is that different comp sets can be weighted more heavily on
one consideration versus another.
Additional Considerations - optional
• There is a great deal of external information that should be
taken into consideration when creating comp sets.
• The web sites of potential competitors can give you an idea
of the type of customer that they are targeting.
• Searching the internet can also help reveal the distribution
and marketing strategies of potential competitors.
• Remember, you are trying to determine if a customer stays
at your hotel, what other properties did they consider.
Obviously many hotels conduct surveys to answer this
question as well.
What is the Average Number of Properties in a
Comp Set?
• The average number of hotels in a primary Comp Set is between
five and six. There is slight variation by scale.
6.5
6.0
5.91
5.58
5.62
Upper Upscale
Upscale
5.52
5.51
Upper Midscale
Midscale
5.60
5.5
5.0
4.5
Luxury
Economy
Rules related to creating Comp Sets
• STR has a set of rules when it comes to creating comp sets.
• The first rule relates to “sufficiency”.
• In North America and Asia Pacific, comp sets must include
three or more hotels in addition to the subject.
• In Europe and Mideast/Africa, comp sets must include four
or more hotels in addition to the subject. (This is related
to strict EU anti-competition regulations.)
• Hotels are encouraged to have more than the minimum so
if a hotel does not report for a time period for some
reason, the comp set data will still appear.
Comp Sets Rules - continued
• The second set of rules relate to “percentage checks”
• They help to ensure that the data of a single hotel, chain or
company is not isolated in the comp set.
• When percentages are calculated the rooms of the subject hotel,
as well as those in the same chain and parent company, are
excluded.
• These rules are sometime referred to as the 40/40/60 rule (NA
and Asia) or the 50/50/60 rule (elsewhere) and relate to the
maximum percentage based on rooms for a single property or
chain (Holiday Inn, Comfort Inn) or company (Starwood, Choice,
Interstate, Host).
Additional Comp Sets
• There are many cases where hotels have more than one
comp set. Multiple comp sets can serve different
benchmarking purposes.
• Hotels with multiple comp sets could have various key
competitive features and/or unique qualities.
• When a hotel changes its comp set, they may elect to keep
the old on for a period of time to provide perspective.
• A second comp set must differ from the primary comp set by
at least two properties. The same rules apply as for changes.
Reasons for Additional Comp Sets
There are a wide variety of reasons for additional comp sets:
– Local versus Regional – one set nearby and another farther away
– Subject hotel is between two markets or cities
– Aspirational – second set for hotels of higher quality or performance level
– Different sets focusing on different chains
– Different set for special niche (conference, water park, boutique)
– Index-focused (aiming to achieve a specific index)
– Different sets for Weekday/Weekend or Group/Transient mix
– Different entities may not agree – chain versus management company
– An old comp set is linked to a prior contract
– Hotel wants to be compared to a different industry segment
Quiz Questions
17) Benchmarking in the hotel industry takes place at what level?
A. Property level for an individual hotel versus their Competitive Set
B. Corporate level for a hotel company, for example one brand versus others
C. Geographic level for tourism organizations, for example city versus
comparable cities
D. All of the above levels
18) Comp sets are used for many purposes in hotel operations, which of the
following is one of these purposes?
A. Comp sets can be used to aid the sales and marketing departments in
determining the effectiveness of various pricing decisions
B. Comp sets can be used in management contracts for performance
requirements
C. Comp sets can have an effect on a general managers compensation
D. All of the above are examples of how comp sets are used
19) The four key considerations when creating a Competitive Set are?
A. Participation, Proximity, Policy and Product
B. Participation, Proximity, Pricing and Product
C. Participation, Parking, Policy and Pricing
D. Participation, Perimeter, Pool and Pricing
Quiz Questions continued
20) All of the following are good reason for a hotel to have an additional competitive
set, except which one?
A. Have a local competitive set based upon geography and another based upon
a special feature or niche, for example: waterpark, boutique, or conference
B. Have different sets for weekday/weekend or group/transient business
C. Have one set that you can easily beat and another which is a realistic target
D. Different entities may not agree, for example, chain versus management
company
21) When can a competitive set be created?
A. A competitive set may be created once the hotel has opened
B. A competitive set may be created while the hotel is under construction
C. A competitive set may be created on the one year anniversary of a hotel’s
opening
D. A competitive set may be created three months before a hotel opens
22) Who creates a competitive set for a chain hotel?
A. Only the General Manager
B. Only the Revenue Manager
C. Only the Sales and Marketing Managers
D. It is a joint effort involving many stakeholders
Quiz Questions continued
23) What is the average number of hotels in a competitive set?
A. Between 3 and 4
B. Between 4 and 5
C. Between 5 and 6
D. Between 6 and 7
24) Which is a valid rule related to creating a competitive set?
A. Comp sets must include five or more hotels
B. No single property or chain can account for more than 25% of the total
participating room supply of a comp set
C. No single company can account for more than 75% of the total participating
room supply of a comp set
D. When percentages are calculated, the rooms of the subject hotel, as well as
the same chain and parent company, are excluded
Quiz Questions continued
25) When can a competitive set be changed?
A. Only if your hotel has changed affiliations
B. At any time, although many wait until the beginning of the year
C. Only at the beginning of the year
D. Only when a hotel has a new general manager
26) Which is NOT a valid rule related to changing a competitive set?
A. If adding two hotels to a competitive set, both must be in different chains
B. A single hotel may be added to a competitive set if it has been open less
than six months
C. A single hotel may be added to a competitive set at any time
D. Any change must involve two or more hotels, e.g. add one/drop one, add
two, drop two, etc.
Application 6 – Creating Comp Sets
1. Obtain a Radial Participation List for a specific hotel. In the Application
Exercise raw data file, there are Radial Participation Lists on different tabs for
sample hotels (different scales, sizes, areas) in the Philippines. You can
obtain samples relevant to your area if you would like.
– Shangri-La Edsa Manila (Luxury Class)
– Dusit Thani Manila (Upper Upscale Class)
– Marriott Manila Hotel (Upper Upscale Class)
– New World Manila Bay Hotel (Upper Midscale Class)
– Ramada Manila Central (Midscale Class)
Application 6 continued
2.
Identify the important the fields in the Participation List based upon the
guidelines related to the “four Ps”. Fields could include Distance, Class,
Number of Rooms and Meeting Size.
3.
In each of these fields, compare the values of the subject hotel to the
potential competitors to narrow down the choices.
4.
Check the Participation fields to see what types of data the Subject hotel
submits compared to the potential competitors.
5.
What other fields could be useful to identify competitive hotels?
6.
You can use the internet to collect additional data regarding competitors,
related to pricing, hotel web sites, amenities and target customers.
7.
Can you suggest a second comp set for your subject hotel?
Application 6 – Excel Alternative
Depending upon your experience with Excel, here is a suggested set of steps to
help determine potential competitors using basic Excel steps.
1.
Obtain a Radial Participation List for a specific hotel. Highlight the subject
hotel, the whole row.
2.
The list is sorted by the Distance field. Look at the hotels and the distances
and determine a best case number for the first range. (This could be 1 mile
for one hotel and 10 miles for a different hotel.) Using a different color,
highlight just the Distance values (numbers only in the Distance column) for
the hotels in the best case first range. Determine the number for a second
range and highlight the next group with a different shade of the same color.
3.
Use the Excel “Sort” program to sort the Participation List by the Class
column. Find the subject hotel and identify other hotels that are in the same
Class as the subject. Using a different color, highlight just the Class values
(Class names only in the Class column) for the hotels in the same group as
the subject. Identify the hotels in one Class group higher or lower than the
subject, and highlight these hotels with a different shade of the same color.
Application 6 alternative continued
4.
Using different colors, repeat the process for the Number of Rooms and
Meeting Space fields. For the first closest range, you might select hotels that
are within 50 (you decide on the number) rooms (or 2000 square feet when
it comes to meeting space) higher or lower than the subject hotel. Then for
the second range, pick another number higher or lower than the first range
and highlight that with a different shade.
5.
If there are other fields that are important, you can repeat the process for
additional fields. Then use Excel to sort the hotels by Distance to return to
the original order.
6.
Review the hotels in distance order looking for ones that have similar values
to the subject in each of the fields that you used. The highlights will make
this easier to see.
7.
Check the Participation fields to be sure the potential competitors submit
similar data as the subject.
8.
This method helps you come up with a good list of potential candidates.
Investigate the competitors more to confirm your decisions.
Part 4 – Introduction to
Hotel Math
Introduction to Hotel Math
• What is Raw Data?
• Key Performance Indicators – sample formulas
• Percent Changes - sample formula
• Multiple Time Periods – sample methodology
• Comparing Property Data to Other Groups of
Hotels
Sample Raw Data
• Here is a sample monthly raw data file that STR would
receive from a hotel company.
• Most raw data is exported from hotel company systems.
• It contains data for multiple hotels.
• Daily data is also reported on either a daily or weekly basis.
Hotel ID
12345
23456
34567
45678
56789
Hotel Name
Fairfield Memphis
Courtyard Nashville
Marriott Knoxville
Renaissance Atlanta
Residence Inn DC
Date Rooms Available
201007
3,100
201007
6,200
201007
9,300
201007
7,750
201007
4,650
Rooms Sold Room Revenue Currency
2,000
200,000
USD
4,000
450,000
USD
7,000
1,000,000
USD
6,000
900,000
USD
3,000
390,000
USD
Fictitious data, of course
STR Data Guidelines
• STR uses a strict set of definitions based on the “Uniform
System of Accounts for the Lodging Industry”.
• Supply (Rooms Available) – the number of rooms in a hotel
multiplied by the days in the month.
• Demand (Rooms Sold) – number of rooms sold by a hotel,
does not include complimentary rooms or “no-shows”
(reservations not cancelled).
• Revenue – total room revenue generated from the sale of
rooms, not including taxes. Includes service charges not
resort fees, nothing else such as F&B.
The Uniform System of Accounts is available from the AHLA or HFTP.
Key Performance Indicators
From these raw data values, STR calculates the three hotel
industry key performance indicators (KPIs):
• Occupancy - %
• Average Daily Rate (or ADR) - $
• Revenue per Available Room (or RevPAR) - $
important metric, based upon all rooms, combination
of occupancy and ADR.
KPIs are Occupancy, ADR, and RevPAR.
Occupancy
Definition
The percentage of available rooms that were sold during a
specific time period.
Calculation
Occupancy is calculated by dividing the Demand (number of
rooms sold) by the Supply (number of rooms available). This
is a percentage. (Remember you divide the smaller number
by the larger number.)
Occupancy = Demand / Supply
or
Occupancy = Rooms Sold / Rooms Available
Monthly Occupancy - Formula
A
1
B
C
D
Supply
Demand
Revenue
E
F
(Formula)
G
Occupancy
(%)
2
Jan-10
3100
2345
198765
C2 / B2 * 100
75.6
3
Feb-10
2800
2002
175432
C3 / B3 * 100
71.5
4
Mar-10
3100
1776
175012
C4 / B4 * 100
57.3
5
Apr-10
3000
2468
234567
C5 / B5 * 100
82.3
6
May-10
3100
2987
312345
C6 / B6 * 100
96.4
Hotel Math Fundamentals Excel.xlsx - Occupancy!A1
You could multiply times 100 (then format as a number with
one decimal) or format as a percentage (adds % symbol).
ADR
Definition
A measure of the average rate paid for rooms sold during a
specific time period.
Calculation
ADR is calculated by dividing the Room Revenue by the
Demand (Rooms Sold). This is a dollar amount.
ADR = Revenue / Demand
Monthly ADR - Formula
A
1
B
C
D
Supply
Demand
Revenue
E
F
G
(Formula)
ADR ($)
2
Jan-10
3100
2345
198765
D2 / C2
84.76
3
Feb-10
2800
2002
175432
D3 / C3
87.63
4
Mar-10
3100
1776
175012
D4 / C4
98.54
5
Apr-10
3000
2468
234567
D5 / C5
95.04
6
May-10
3100
2987
312345
D6 / C6
104.57
Hotel Math Fundamentals Excel.xlsx - ADR
You could format as a “$” (adds symbol) or as a number with two decimals.
RevPAR
Definition
A measure of the revenue that is generated by a property in
terms of each room available. This differs from ADR because
RevPAR is affected by the amount of unoccupied rooms, while
ADR only shows the average rate of rooms actually sold.
Calculation
RevPAR is calculated by dividing the Room Revenue by the total
number of Rooms Available, the Supply. This is a dollar amount.
RevPAR = Revenue / Supply
Monthly RevPAR – Formula
A
1
B
C
D
Supply
Demand
Revenue
E
F
G
(Formula)
RevPAR ($)
2
Jan-10
3100
2345
198765
D2 / B2
64.12
3
Feb-10
2800
2002
175432
D3 / B3
62.65
4
Mar-10
3100
1776
175012
D4 / B4
56.46
5
Apr-10
3000
2468
234567
D5 / B5
78.19
6
May-10
3100
2987
312345
D6 / B6
100.76
Hotel Math Fundamentals Excel.xlsx - RevPAR!A1
You could format as a “$” or as a number with two decimals.
Hint – Importance of RevPAR
• RevPAR is a very important metric for the Hotel Industry
since it is a combination of Occupancy and ADR.
• A hotel could have a 100% Occupancy because of a low
ADR. The RevPAR will reflect that.
• A hotel could have a very high ADR, but only sell one room.
The RevPAR will reflect that as well.
• Frequently when a hotel (or the GM) is evaluated or
measured, RevPAR is the metric that is being looked at.
Percent Changes
Definition
The comparison of the This Year (TY) number versus the Last
Year (LY) number, whether a raw value or a KPI. The percent
change illustrates the amount of growth (up, flat, or down)
from the same period last year.
Calculation
The “This Year” number minus the “Last Year” number divided
by the “Last Year” number. This is a percentage.
Percent Change = (This Year – Last Year) / Last Year * 100
Remember the parentheses for the “order of operations”.
Demand Percent Change
A
B
C
D
E
1
This Year
Last Year
2
Demand
Demand
F
G
Percent Change
(Formula)
Demand
3
Jan-10
2345
2456
(B3-D3)/D3*100
-4.5
4
Feb-10
2002
2112
(B4-D4)/D4*100
-5.2
5
Mar-10
1776
1750
(B5-D5)/D5*100
1.5
6
Apr-10
2468
2345
(B6-D6)/D6*100
5.2
7
May-10
2987
2555
(B7-D7)/D7*100
16.9
Hotel Math Fundamentals Excel.xlsx - DemandPercentChange!A1
You could multiply times 100 or format as a percentage.
Hint - Percent Changes in General
• Percent Changes are closely scrutinized by the industry.
• A positive Percent Change indicates that the number this
year is greater than the number last year. For example the
Occupancy or ADR value is growing or improving.
• A negative Percent Change indicates that the number this
year is less than the number last year. For example the
Occupancy or ADR value is decreasing or getting worse.
Hint - % Changes for Raw Values
• The Percent Changes for raw values such as Supply,
Demand, and Revenue are valuable bits of information.
• Supply Percent Change shows whether there are more or
less rooms available in the hotel(s) or market this year
versus last year.
• Demand Percent Change shows whether there are more or
less rooms sold (guests spending the night) this year versus
last year.
• Revenue Percent Change shows whether there is more or
less money being made by the hotel or hotels (and
therefore being spent by those guests).
ADR Percent Change
A
B
C
D
1
2010
2009
2
ADR
ADR
E
F
G
Percent Change
(Formula)
ADR
3
Jan-10
84.76
81.93
(B3-D3)/D3*100
3.5
4
Feb-10
87.63
88.85
(B4-D4)/D4*100
-1.4
5
Mar-10
98.54
100.07
(B5-D5)/D5*100
-1.5
6
Apr-10
95.04
95.24
(B6-D6)/D6*100
-0.2
7
May-10
104.57
116.93
(B7-D7)/D7*100
-10.6
Hotel Math Fundamentals Excel.xlsx - ADRPercentChange!A1
You could multiply times 100 or format as a percentage.
Hint - % Changes for KPIs
• Occupancy Percent Change shows whether the Occupancy
this year is greater or less rooms than the Occupancy last
year. This could be related to Supply and Demand changes.
• ADR Percent Change shows whether the average rate this
year is greater or less than the average rate last year.
• RevPAR Percent Change shows whether the RevPAR amount
is greater or less than the amount last year. This could be
related to Occupancy and ADR differences.
Multiple Time Periods - Monthly
• Multiple time periods for monthly data include:
‒ Year-to-Date (YTD) – January through the current month of
the current year.
‒ Running 12-Month – the current month plus the prior 11
months, also called a 12-Month Moving Average.
‒ Running 3-Month – the current month plus the prior two
months.
• The metrics for all of these time periods are based upon the
aggregated raw monthly data. So you aggregate the Supply,
Demand, and Revenue for all the months and then apply the
Occupancy, ADR, and RevPAR formulas.
YTD Supply, Demand, & Revenue
A
1
B
C
D
Supply
Demand
Revenue
2
Jan-10
3100
2345
198765
3
Feb-10
2800
2002
175432
4
Mar-10
3100
1776
175012
5
Apr-10
3000
2468
234567
6
May-10
3100
2987
312345
7
(Formula)
8
May YTD
sum(B2:B6)
15100
sum(C2:C6)
sum(D2:D6)
11578
Hotel Math Fundamentals Excel.xlsx - YTDSupplyDemandRevenue!A1
You can use the SUM function to aggregate the raw values.
1096121
YTD Occupancy, ADR, & RevPAR
A
1
B
C
D
E
F
G
Supply
Demand
Revenue
Occupancy
ADR
RevPAR
2
Jan-10
3100
2345
198765
3
Feb-10
2800
2002
175432
4
Mar-10
3100
1776
175012
5
Apr-10
3000
2468
234567
6
May-10
3100
2987
312345
7
YTD
15100
11578
1096121
8
(Formula)
76.7
C7/B7*100
94.67
D7/C7
Hotel Math Fundamentals Excel.xlsx - 'YTD Occ, ADR, RevPAR'!A1
Aggregate the raw values, then apply same formulas as before.
72.59
D7/B7
How not to calculate metrics for
multiple time periods?
• Numbers for multiple time periods never use straight averages
of monthly values.
• Some people mistakenly compute YTD occupancy, for example,
by adding the occupancy of each month and dividing by the
number of months.
• This gives you a number which is close to the accurate number,
but this methodology assigns the same weight to each month,
instead of weighting based upon the number of days in each
month.
Index Numbers
• Index numbers are another example of a formula used by the
hotel industry. Index numbers compare the performance of
the subject property to the comp set. Here is the formula:
Subject Value / Comp Set Value * 100
• A number greater than 100 means the subject property
outperformed the comp set and a number below 100 means
the comp set outperformed the subject property.
• Index numbers are available for Occupancy, ADR, and
RevPAR. They are relied upon heavily.
Index numbers are percentages, multiple * 100 or format as %.
Occupancy, ADR, & RevPAR Indexes
A
B
C
D
Subject Property
Occupancy
1
2
May-10
3 (Formula)
ADR
RevPAR
96.4 104.57 100.76
E
F
G
Comp Set
Occupancy
ADR
H
I
J
Index Numbers
RevPAR
78.9 87.80 69.29
Occupancy
122.2
ADR
119.1
RevPAR
145.4
B2/E2*100 C2/F2*100 D2/G2*100
Hotel Math Fundamentals Excel.xlsx - 'Occ, ADR, RevPAR Indexes'!A1
Calc KPIs for Subject & Comp, then apply Index formula.
Hotel Math
• The math used in basic hotel industry performance metrics
is not too challenging.
• There are a set of formulas that someone needs to
understand, such as Occupancy, ADR, RevPAR, Percent
Changes and Index Numbers.
• There are methodologies that someone needs to
understand, for example a YTD number is based upon
aggregated data, not straight averages.
• The hotel industry relies heavily upon data and the ability to
effectively analyze that data is an important skill.
Quiz Questions
27) The definitions for Supply, Demand and Revenue used by STR and others in the
lodging industry are taken from what source?
A. Lodging Industry Accounting Fundamentals Guide
B. Uniform System of Accounts for the Lodging Industry
C. Hotel Book Keeping for Dummies
D. Modern Hotel Industry Accounting
28) Which statement is true regarding raw data that is submitted to STR?
A. A small amount comes in the form of raw data files
B. Most data is entered online
C. There are limited error check programs
D. The majority of data is exported from the hotel company systems
29) Which is true regarding the type of performance data (Supply, Demand,
Revenue) that STR receives?
A. Daily only
B. Daily and monthly only
C. Daily, weekly, and monthly
D. Daily, weekly, monthly and quarterly
Quiz Questions continued
30) Which statement is true regarding RevPAR?
A. It is almost always higher than ADR
B. It can be thought of as a combination of Supply and Demand
C. When a hotel or GM is evaluated, the RevPAR metric is rarely considered
D. It can be thought of as a combination of Occupancy and ADR
Use the spreadsheet below to answer questions 31
1
2
3
4
5
A
B
C
2013
Jan
Feb
Mar
Mar YTD
Supply
4650
4200
4650
Demand
2883
2394
3255
D
Revenu
e
374790
304038
462210
E
F
G
Occupancy
ADR
RevPAR
31) The March YTD Occupancy (E5) is _______ .
A. 62%
B. 63.2%
C. 65%
D. 60.5%
Quiz Questions continued
Use the spreadsheet below to answer questions 32
1
2
3
4
5
A
B
C
D
E
F
G
2013
Jan
Feb
Mar
Apr
Occupancy
This Year
63.7
66.3
68.5
68.2
ADR This
Year
$120.40
$133.74
$142.65
$138.00
Occupancy
Last Year
62.4
65.3
67.7
68.9
ADR Last
Year
$118.72
$126.43
$133.70
$135.92
Occupancy
% Change
ADR %
Change
32) The Average Daily Rate percent change for April (G5) is ______.
A. 2.1%
B. -2.1%
C. 1.5%
D. 1.4%
Application 7 – Monthly Data
1.
Obtain a sample raw monthly data file (in Excel) with 48 months of
property data for single sample hotel.
2.
The file will contain columns for STR Number, Month Date, Supply,
Demand, and Revenue.
3.
Create three columns at the end for Occupancy, ADR, and RevPAR.
Enter the formulas for each metric and copy the formulas to each row.
4.
Insert one column after each of the six metrics and add formulas for
percent changes. You will have to compare the “This Year” value to
the “Last Year” value which appears 12 rows above. You will not be
able to derive these metrics for the first year of data.
5.
What can you learn about this single hotel by analyzing the data that
you have just computed?
Part 5 – Introduction to
Hotel Industry Reports
Introduction to Hotel Industry Reports
• Property Level – the STAR Report
• Ad-Hoc Reports
‒ Trend Report
‒ Profitability/HOST Report
‒ Pipeline Report
• Destination Report
Types of Hotel Industry Reports
• A wide variety of reports are used to help analyze different
aspects of the hotel industry. Here are the major types:
‒ Property-level Reports – comparing a single property to
other sets of hotels
‒ Ad-Hoc Reports – analyzing various performance or
development metrics for a set of hotels
‒ Destination Reports – analyzing performance data for
multiple sets of hotels
Property Level Reports - the STAR Report
• The most popular property level report used by the industry is
the STAR Report.
• The name “STAR” stands for “Smith Travel Accommodations
Report”.
• The original version of this report was launched in 1987.
• The STAR Reports compare the performance of the subject
hotel to other comparative groups of properties.
• STAR Reports are generated on a monthly, weekly and daily
basis.
STAR Report Details
• STAR Reports are normally generated in the form of Excel
workbooks.
• They are automatically distributed electronically to staff
persons responsible for each hotel.
• No one else has access to a STAR Report for an individual hotel.
• The STAR Reports contain multiple tabs/pages with lots of
different types of data.
• Experienced hotel staff use this data to improve the
performance of the hotel versus their competitors.
Sample Monthly STAR Report
• We will review three tabs of a sample Monthly STAR Report.
These are among the most popular pages:
‒ Table of Contents – displays the subject hotel name, date
information, and a list of all the pages included
‒ Monthly Performance At A Glance Page
‒ Competitive Set Page
Monthly Table of Contents
Tab 2 - Monthly Performance at a Glance
• Provides a quick one-page overview of performance relative
to your comp set.
• Displays Occupancy, ADR, and RevPAR for your property and
your comp set, also Index numbers (subject property
value/comp set value) and Percent Changes.
• For four points in time: Current Month, Year to Date, Running
3-month, and Running 12-month.
• Also displays basic information for the subject property and
the report settings at the top.
Monthly Performance at a Glance
At a Glance - Hints
• Use this page to obtain a quick performance overview of the
subject hotel compared to the comp set.
• Check the KPI Index Numbers for the current month. Check
KPI actual values for your hotel and the comp set.
• Check the Percent Changes for the Indexes and the actual
values to analyze year-over-year performance.
• Compare the Current Month metrics to the other time
periods displayed to see how the current month performance
compares to recent trends. Running Index numbers and
Percent Changes will provide a longer term perspective.
Tab 4 – Competitive Set Report
• Provides a historic comparison of your property to your comp
set over time.
• Displays Occupancy, ADR, and RevPAR, as well as Percent
Changes, Index numbers (subject property value/comp set
value), and Ranking information (subject property position X of
Y).
• Shows 18 months of monthly data and 3 years of Year to Date,
Running 3-month, and Running 12-month.
• Graphs monthly indexes (line graph) and RevPAR Percent
Changes (separate bar graphs for YTD and Running numbers).
Competitive Set Report
Competitive Set Report – Graph of Indexes
The dotted line represents an Index of 100.
The graph shows 18 months of Occupancy (blue), ADR (green=$), and
RevPAR (brown) indexes by month.
Allows you to see interaction of indexes over time.
Competitive Set Report – Another Sample Graph
Monthly Indexes
117
112
107
102
97
92
87
82
77
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Occupancy
Nov
ADR
Dec
Jan
RevPAR
Feb
Mar
Apr
May
Jun
Jul
100 %
Here is a hypothetical scenario. In April the general manager decided to raise
rates. They may have thought they had a loyal customer base. What happened?
(The occupancy was immediately affected to a significant degree.) The hotel
continued for several months and ADRs were still affected. In June the hotel
lowered rates and Occupancy returned.
Did the general manager do the wrong thing? (No, they should be trying things
like this. It did not have the intended results.) What else could they try?
Competitive Set Report – Monthly Data Tables
The monthly table displays 18 months of occupancy, ADR and RevPAR for your
hotel versus the competitive set.
Includes Percent Change calculations, Index numbers, and Ranking information.
(Index = Property performance / competitive set performance X 100)
Ad-Hoc Reports
Intro to Ad-Hoc Reports
• These reports are generated on a one-time basis as a special
request.
• They can be obtained by anyone. (This is different than a STAR
Report that can only be received by someone related to the
subject hotel.)
• There are flexible methods to select the user-defined group of
hotels that a person wishes to analyze.
• The ad-hoc reports are generated in the form of an Excel
workbook.
Types of Ad-Hoc Reports
• There are several ad-hoc reports that analyze different types of
data. These are the most popular examples:
‒ Trend Report – displays performance information (Supply,
Demand, Revenue, Occupancy, ADR, RevPAR) for a userdefined group of hotels
‒ Profitability/HOST Report – displays profit and loss data for
a group of hotels
‒ Pipeline Report – displays past and future development
information for an area
Trend Reports
• Trend Reports are the most popular type of ad-hoc report.
• Trend reports display historic monthly performance data for a
user-defined group of hotels. Daily data and Segmentation data
may also be included upon request.
• We will review two tabs of a sample Trend Report:
‒ Table of Contents – displays the name of the group of hotels,
date information, and a list of all the pages included
‒ Classic Page – displays multiple columns of performance
information
Trend Table of Contents
Sample Page from a Trend Report – the Classic Page
Pipeline Reports
• Pipeline Reports display statistics on past and future hotel
development in an area.
• The term “Pipeline” refers to hotels that are currently under
construction or in phases of planning.
• We will review two tabs of a sample Pipeline Report:
‒ Table of Contents – displays the name of the area
‒ Summary Page – displays overview of past and future
development
Pipeline Report – Table of Contents
Supply Summary
Profitability/HOST Reports
• Different names…similar format…same data. In the U.S. the
report is called a HOST (stands for “Hotel Operating Statistics”)
Report, while outside the U.S. it is called a Profitability Report.
• A Profitability/HOST Report displays annual Profit and Loss
information, including Revenue, Expense, and Profit accounts
• We will review two tabs of a sample Profitability Report:
‒ Table of Contents – displays the name of the selected group
‒ Summary Page – displays several metrics for various P&L
accounts
Profitability Report – Table of Contents
Tab 2 - Profitability Report - Summary page
Tab 2 - Profitability Report - Summary page continued
What is a Destination Report?
• Destination Reports are frequently used by tourism
organizations, local hotel associations and convention and
visitor bureaus.
• These organizations can create a personalized report to help
them analyze the performance of any area of interest.
• We will review the most popular tabs of a Destination Report:
‒ Multi-Segment Page – displays current month and YTD
numbers for multiple user-defined groups of hotels
Monthly Multi-Segment – Sample
Additional Industry Reports - optional
• While the Trend, Pipeline and Profitability Reports are the
most popular ad-hoc reports, there are others that are
commonly used as well. These include:
‒ Forecast Reports – projected performance information
‒ Census Database – hotel attribute information, over 100
fields of data
‒ Property and Room Counts – size and structure
information for an area, for example hotels in a market by
Scale and Chain
Sample Forecast Report – Annual & Quarterly Outlook
Sample Property and Room Counts (delivered in Excel)
Market
Submarket
CensusProps
CensusRooms
SampleProps
SampleRooms
Beijing
Beijing North
128
22860
27
6489
Beijing
Beijing South
315
47311
98
16518
Beijing
Beijing West
157
31316
37
7578
Beijing
CBD/Dongzhimen/Jianguomen
110
23983
43
13935
Beijing
Downtown/Financial Street
219
35413
77
17035
Beijing
Outer Beijing
265
41211
79
11370
Beijing
Yansha/Guozhan Center
84
17516
30
8786
East China excl Hangzhou
Anhui Area
131
17886
46
7809
East China excl Hangzhou
East China Rural
333
48357
108
14304
East China excl Hangzhou
Hefei
111
16710
32
6158
East China excl Hangzhou
Jiangsu
547
75668
182
27957
East China excl Hangzhou
Nanjing
263
36966
70
12213
East China excl Hangzhou
Ningbo
165
25942
42
8246
East China excl Hangzhou
Qingdao
197
30510
64
12667
East China excl Hangzhou
Shangdong Area
543
64997
149
18625
East China excl Hangzhou
Suzhou
219
34190
82
14259
East China excl Hangzhou
Wuxi
115
19022
41
8175
East China excl Hangzhou
Xiamen
155
26981
38
7707
East China excl Hangzhou
Zhejiang Area
277
41887
60
10345
Guangzhou
Baiyun District
61
8808
11
2087
Guangzhou
Guangzhou Area
165
26303
22
5088
Guangzhou
Tianhe District
122
23172
31
8578
Guangzhou
Yuexiu District
129
24083
25
5748
Hainan Regional
Hainan Regional
91
21277
25
6753
Hangzhou
Hangzhou Area
195
30555
52
8696
Hangzhou
Hangzhou Qiandao Lake
17
3610
5
1455
Hangzhou
Hangzhou West Lake Business District
154
24386
45
7913
Henan Area
Henan Regional
120
17025
33
4857
Henan Area
Zhengzhou
110
18236
34
6654
Sample Census Database File (delivered in Excel)
Hotel Name
Physical Address Line 1
Physical Address Line 2
Physical City
Physical State
Physical Country
Physical Postal Code Continent
Sub-Continent
Super 8 Hotel Beijing Changping Gu Lou Dong
36 Of East Gu Lou Street
Beijing
Beijing, China
China
044104
Asia Pacific
Northeastern Asia
Crowne Plaza Beijing Lido
6 Jiangtai Road Building A
Chaoyang District
Beijing
Beijing, China
China
100004
Asia Pacific
Northeastern Asia
Oriental Bay International Hotel
26 Anwai Xibinhe Road
Dongcheng District
Beijing
Beijing, China
China
100011
Asia Pacific
Northeastern Asia
Hainan Hotel
188 Andingmenwai Avenue
Dongcheng District
Beijing
Beijing, China
China
100011
Asia Pacific
Northeastern Asia
Phoenix Palace Lakeview Hotel
South Gate Of Rendinghu Park
Beijing
Beijing, China
China
100011
Asia Pacific
Northeastern Asia
Zhongan Inn Andingmen Hotel
168 Andingmen Wai Avenue
Beijing
Beijing, China
China
100011
Asia Pacific
Northeastern Asia
Super 8 Hotel Beijing You An Men
6 You An Men Wai Street
Beijing
Beijing, China
China
100011
Asia Pacific
Northeastern Asia
Fengtai District
Mailing Address
Mailing City
Mailing State
Mailing Country
Mailing Postal Code Phone#
36 OF EAST GU LOU STREET
BEIJING
Beijing, China
China
044104
1040023621
1085502287
61
201209 N
Super 8
6 JIANGTAI ROAD BUILDING A
BEIJING
Beijing, China
China
100004
1064373388
1064379858
466
201402 Y
Crowne Plaza
26 ANWAI XIBINHE ROAD
BEIJING
Beijing, China
China
100011
1058139988
1058139999
359
Y
Independent
188 ANDINGMENWAI AVENUE
BEIJING
Beijing, China
China
100011
1064266655
1064267896
115
199406 Y
Independent
SOUTH GATE OF RENDINGHU PARK
BEIJING
Beijing, China
China
100011
1082080088
86
Y
Independent
168 ANDINGMEN WAI AVENUE
BEIJING
Beijing, China
China
100011
1064279933
1064204475
148
Y
Independent
6 YOU AN MEN WAI STREET
BEIJING
Beijing, China
China
100011
1001840001
1085502287
80
201009 N
Operation
Parent Company
Company Code
Market
Submarket
Franchise
Wyndham Wo
WYNW
Beijing
Beijing North
201209
Chain Management
Interconti
ICHG
Beijing
Beijing North
201402
Independent
Beijing
Beijing North
Independent
Beijing
Beijing North
Independent
Beijing
Beijing North
Beijing
Beijing North
Beijing
Beijing North
Independent
Franchise
Wyndham Wo
WYNW
Largest Meeting Space (sq ft)
Meeting Space (sq ft)
12825
3000
Year Affiliated
Fax#
Ex-Affil
Rooms Year Built
Convention
Restaurant
Conference
Affiliation
Super 8
Ski Spa Golf Boutique
All Suites
Casino
199406
201402 Independent
Location
Scale
Class
STAR Participant
Urban
Economy Chains
Economy Class
Y
207568
Upscale Chains
Upscale Class
Y
212428
Independents
Upper Upscale Class
Y
143338
Urban
Independents
Upper Midscale Class
N
143758
Urban
Independents
Upper Midscale Class
N
177324
Urban
Independents
Midscale Class
N
177585
Suburban
Economy Chains
Economy Class
Y
192288
13653 Urban
3000 Suburban
STR#
Quiz Questions
33) Which is NOT an accurate statement regarding the differences between STAR
Reports, Ad-hoc Industry Reports, and Destination Reports?
A. Ad-hoc Industry Reports are requested on a one-time, as needed basis
B. Hotels and hotel companies have annual subscriptions to STAR reports and
receive them on a regular basis
C. Destination Reports are most often received by tourism organizations
D. Ad-Hoc Industry reports or Destination Reports can only be requested by
hotel companies
34) Which of the following is NOT a valid type of data that you can request to
include on a Trend Report, in addition to monthly data?
A. Daily data
B. Weekly data
C. 12-month moving average data
D. Segmentation data
Quiz Questions continued
Using the information from an excerpt of a sample “Trend Report”, answer the following question.
Date
Jan 12
Feb 12
Mar 12
Apr 12
May 12
Jun 12
Jul 12
Aug 12
Sep 12
Oct 12
Nov 12
Dec 12
Sep YTD 2012
Total 2012
Jan 13
Feb 13
Mar 13
Apr 13
May 13
Jun 13
Jul 13
Aug 13
Sep 13
Sep YTD 2013
Occupancy
This
% Chg
Year
65.9
12.0
68.1
-0.8
80.1
-0.1
84.8
6.3
81.4
-4.4
94.0
3.7
89.7
-1.0
89.6
0.4
90.4
5.1
91.7
4.3
83.7
-2.3
73.1
82.8
82.8
63.2
73.2
84.8
84.8
91.3
72.3
82.8
85.2
82.7
80.2
6.5
2.0
2.2
-4.0
7.4
5.9
-0.1
12.1
-23.0
-7.7
-4.9
-8.6
-3.1
ADR
This
% Chg
Year
102.08
6.3
108.64
5.4
137.67
8.0
148.49
11.5
177.83
5.2
199.11
3.1
166.30
3.1
171.65
5.9
193.06
15.0
198.63
10.7
175.93
4.4
RevPar
This
% Chg
Year
67.23
19.1
74.02
4.6
110.29
8.0
125.93
18.4
144.80
0.6
187.13
6.9
149.21
2.1
153.87
6.4
174.50
20.9
182.14
15.6
147.24
2.1
111.63
159.73
161.13
104.13
110.43
145.35
155.54
181.69
210.56
182.55
176.24
190.15
167.81
81.54
132.19
133.37
65.85
80.80
123.29
131.83
165.83
152.33
151.18
150.23
157.17
134.61
-2.1
6.7
6.3
2.0
1.6
5.6
4.7
2.2
5.8
9.8
2.7
-1.5
5.1
4.3
8.9
8.7
-2.1
9.1
11.8
4.7
14.5
-18.6
1.3
-2.4
-9.9
1.8
35) Which one of the following is an accurate statement?
A. The occupancy for the year-to-date period ending September 2012 is down from the
same period in 2011
B. The ADR for the first eight months of 2013 was up from the same two periods in 2012
C. The September YTD occupancy for both 2013 and 2012 was exactly the same
D. The RevPAR in every month of 2013 was greater than the same months in 2012
Quiz Questions continued
Using the sample “Supply Summary” page from a Pipeline Report, answer the following two questions
Historic Supply
Rooms
Sep-08
Sep-09
Luxury
Sep-10
Sep-11
Sep-12
Sep-13
185
185
185
185
In Constr.
Pipeline Projects
Final
Planning
Planning
Upper Upscale
4,393
4,393
3,681
4,395
4,197
4,641
Upscale
4,047
4,160
4,985
5,691
6,065
6,134
535
576
300
Upper Midscale
6,007
5,793
5,811
5,819
5,851
5,570
579
1,084
499
Midscale
1,165
1,450
1,412
1,438
1,650
1,572
105
Economy
3,696
3,701
3,775
3,770
3,859
4,035
86
Independent
2,614
2,318
3,109
2,384
2,307
2,218
21,922
21,815
22,958
23,682
24,114
24,355
Total
Pre
Planning
475
1,114
2,326
175
616
974
616
36) Which one of the following is an accurate statement regarding Supply growth over the last 5 years?
A. The Upper Upscale segment has the largest decrease in supply
B. The Upscale segment experienced a significant increase in supply
C. The Luxury Scale group experienced a significant decrease in Supply
D. The Independent supply increased significantly from 2010 to 2013
Quiz Questions continued
37) What are the four phases for hotel projects in the development pipeline?
A. In Construction, Post Planning, Planning and Pre-Planning
B. In Construction, Final Planning, Planning and Pre-Planning
C. In Construction, Final Planning, Post Planning and Pre-Planning
D. In Construction, Post Planning, Planning and Pre-Permit
38) A Profitability report displays what type of information?
A. Profit and Loss information, including revenue, expenses and profit
accounts
B. Balance Sheet (Assets) information
C. Monthly performance (Occupancy, ADR, RevPAR) data
D. All of the above
39) The Profitability Report displays data based upon what time period?
A. Weekly
B. Monthly
C. Quarterly
D. Annual
Quiz Questions continued
•
40) Destination Reports are most often used by?
A. Hotel Associations
B. Tourism Organizations
C. Convention and Visitor Bureaus
D. All of the above
Application 8 – Analyzing Industry Reports
1.
Obtain a sample industry report (modified version with just the pages
covered in the training). There are four possible reports:
‒ Monthly STAR Report – Life-like data for a single hotel
‒ Trend Report – for a user-defined set of hotels
‒ Pipeline Report – for a user-defined geographic area
‒ Profitability Report – for a user-defined set of hotels
2.
Using the data from these reports, make as many observations as
possible related to the hotel or hotels that are analyzed in the various
pages that you see.
3.
Why is data and the analysis of that data so important to the hotel
industry?
Application 9 – Market Study part 2
1.
In application 5, you selected a market or country and started a
Market Study with size and structure information from Property and
Room Counts.
2.
Obtain one or more of the following industry reports for the same
market or country:
‒ Trend Report
‒ Pipeline Report
‒ Profitability Report
3.
Using the data from the Trend Report, add performance data such as
YTD or last year occupancy, ADR, and RevPAR and the percent changes
for your market. You could show recent metrics as of the current
month. You could also show a longer historic trend of monthly data
over time.
Application 9 – Market Study part 2
4.
Using the data from the Pipeline Report, add information about the
types of hotels that have been built in your market during the recent
years.
5.
Using the data from the Profitability Report, add information about
the profitability of hotels in your market. You could include
information about non-room revenues and expenses.
Questions?
Steve Hood
shood@str.com
+1 615-824-8664, extension 3315
Duane Vinson
dvinson@str.com
+1 615-824-8664, extension 3329
www.strglobal.com
Transition Slide
Total United States
Occupancy and ADR Percent Change
July YTD & Weekly through 9/10
July YTD
8/6
7
8/13
8/20
8/27
9/3
9/10
6.6 6.4
6.0
6
5
4.6
4.5
4
3.1
3
2
4.8
4.4
3.5 3.3 3.4
3.2
1.4 1.3
1
0
Occupancy % Chg
ADR % Chg