Certification in Hotel Industry Analytics – Combined Revi - PowerPoint Presentation

Slide1

Certification in Hotel Industry Analytics – Combined Review Version

The SHARE Center

Supporting Hotel-related Academic Research and EducationSlide2

Certification in Hotel Industry Analytics

Table of Contents

Hotel Industry Analytical Foundations

Hotel Math Fundamentals, the metrics used by the Hotel Industry

Property Level Benchmarking (STAR Reports)

Hotel Industry Performance Reports (Trends, Pipeline, P&L and Destination Reports)Slide3

Hotel Industry Analytical

Foundations – Review Version

The SHARE Center

Supporting Hotel-related Academic Research and EducationSlide4

Foundations - Table of Contents

1. Who are the players in the hotel industry?

Affiliations

Operations and Independents

Categorizations used by the hotel industry

2. Geographic Categories

3. Non-geographic Categories

4

. Benchmarking in the hotel industry

Introduction to Benchmarking and Competitive sets

Creating and Changing Comp SetsSlide5

Note regarding Training Content

This PowerPoint contain lots of slides.

Material that is not critical for the “Certification in Hotel Industry Analytics” 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 PowerPoints. You can also obtain similar data for a country that is more relevant to your audience. Contact the STR SHARE Center if you have any questions.Slide6

Note regarding Application Exercises

There are Application Exercises that are suggested at the end of each section. These are very valuable since they offer hands-on experience working with live hotel data.

The raw data that relates to the Foundations exercises can be found in a spreadsheet titled “

Hotel Foundations application exercises

” that comes with the training program.

You can obtain similar raw data for a country that is more relevant to your audience.

Contact the STR SHARE Center if you have any questions.Slide7

Part 1 - Who are the Players in the Hotel Industry? – Various Hotel AffiliationsSlide8

Multiple Affiliations for a Single Hotel

Chain

Parent Company

Management Company

Owner

Asset Management CompanySlide9

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.

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 PremierSlide10

Parent Company

Parent companies consist of multiple chains. (Some people may use the term “Group” as a synonym for Parent Company.)

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.

Parent companies and the related chains have changed dramatically over time.

The

next

slide

shows two examples of Parent

Companies. Complete

lists

are

available.Slide11

* Note the WW numbers include the US numbers on the next several slides** Parent companies and chains provided for a general perspective (no need to memorize)

As of Year-End 2015

Parent Companies and Chains - Hilton Worldwide & InterContinental Hotels Group - optional**

Parent Company

Chain

Scale

U.S. Props

U.S. Rooms

WW Props

WW Rooms

Hilton Worldwide

Conrad

Luxury Chains

3

962

25

7,719

Waldorf Astoria

Luxury Chains

11

6,655

25

10,296

Curio Collection

Upper Upscale Chains

14

3,838

18

4,641

Embassy Suites

Upper Upscale Chains

218

51,929

226

53,834

Hilton

Upper Upscale Chains

238

99,137

572

204,720

Hilton Grand Vacations

Upper Upscale Chains

2

368

2

368

DoubleTree

Upscale Chains

308

77,783

449

109,786

Hilton Garden Inn

Upscale Chains

575

78,607

668

94,030

Homewood Suites

Upscale Chains

370

41,478

387

43,401

DoubleTree Club

Upper Midscale Chains

4

549

4

549

Hampton Inn

Upper Midscale Chains

1,222

115,302

1,321

128,840

Hampton Inn & Suites

Upper Midscale Chains

752

77,565

783

81,148

Home2 Suites by Hilton

Upper Midscale Chains

71

7,376

73

7,600

InterContinental Hotels Group

InterContinental

Luxury Chains

19

7,559

181

60,795

Kimpton

Upper Upscale Chains

58

10,613

58

10,613

ANA

Upscale Chains

6

1,424

Crowne Plaza

Upscale Chains

137

38,846

402

112,233

EVEN Hotels

Upscale Chains

3

446

3

446

Hotel Indigo

Upscale Chains

38

4,859

65

7,664

HUALUXE Hotels & Resorts

Upscale Chains

3

798

Staybridge Suites

Upscale Chains

197

21,008

220

23,964

Holiday Inn

Upper Midscale Chains

607

104,638

1,199

220,463

Holiday Inn Express Hotel

Upper Midscale Chains

1,931

166,757

2,417

235,510

Holiday Inn Garden Court

Upper Midscale Chains

3

205

Holiday Inn Select

Upper Midscale Chains

1

173

1

173

Candlewood Suites

Midscale Chains

340

32,183

341

32,328Slide12

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.

An independent hotel is not affiliated with a chain or parent company

.

Most parent companies will have a mixture of corporate and franchise hotels. Slide13

Independent Hotels

Independent hotels are not affiliated with a specific chain. They may be managed or owned by companies listed on pages to follow.

There are

over

and over 107,000 independent hotels in the world in the STR database (

22,000 in

the

U.S.).

Independent hotels vary

in

size, price level and location, but if you looked at all independents hotels, they would tend to be

small,

low price and in

rural

areas. There are always exceptions.

The percent of chain hotels versus independents varies

in

different areas. The next slide shows the percent of chains versus independents

in the

US and

outside.

A country like Italy has just 10% chain hotels. Slide14

Chain Hotels versus Independents - U.S. vs. Non-U.S.

Percentages based on Number of Rooms

WW percentage (

53/47

) is based on hotels in STR database, much

harder to find WW independents

, so probably closer to 40/60Slide15

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.

Management companies may manage a variety of different chains as well as independent hotels.

Some chains or parent companies manage their own hotels. Slide16

Owner Companies

There are many companies that own multiple hotels.

Owners may own hotels from a variety of different chains .

Some chains or parent companies own their own hotels. Slide17

Owned by Felcor and

Managed by Aimbridge

Hospitality

Hilton Worldwide

owned and managed

Owned and managed

by Archon HospitalitySlide18

Asset Management Company

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.

This type of affiliation is a relatively new phenomenon.Slide19
Slide20

Newer type of entity - “Soft Brands”

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 such as reservations systems and loyalty programs.

The following chains are examples of this new phenomenon:

Autograph Collection by Marriott

Luxury Collection by Starwood

Curio Collection by Hilton

Ascend Collection by ChoiceSlide21

“Soft Brands” - continued

Consider the difference between Autograph, a Marriott soft brand and Courtyard, a traditional Marriott brand.

If you walk into a Courtyard hotel, think

about what

it will look like. Predictably, just like the last Courtyard hotel you might have been in and very similar to the next Courtyard you will visit.

Very different in the case of an Autograph hotel. Each one is different than the others. They are unique, more like Boutique hotels.

Most parent companies now have one or two soft brands.Slide22

Other Players in the Hotel Industry - optional

There are many additional companies and organizations that are related to the hotel industry (see Appendix 1):

Real Estate Investment Trusts

Membership and Marketing Groups

Convention & Visitor Bureaus, Tourism and Travel Organizations

Hotel Associations

Developers, Consultants, Appraisers

Wall Street, Accounting, Financial firms

Media

National & international hotel conferences

Educational Community

Governments (US, Australia)

Hotel vendors (Starbucks, Samsung, …)Slide23

Quiz Questions

1) Most of the entities below are classified as “Chains”. Which one is a “Parent Company” consisting of multiple chains?

Hampton Inn

Radisson

Blu

Accor

Holiday Inn Express

2) Which is a true statement about Parent Companies?

Parent Companies and the related chains have changed over time

Parent Companies must consist of no more than five chains

Parent Companies can only consist of chains in a single Scale

Parent Companies can only have hotels in a single country

3) What are the three different operation types?

Corporate, Managed, Independent

Managed, Franchise, Independent

Managed, Clustered, Independent

Corporate, Franchise, IndependentSlide24

Quiz Questions continued

4) Which is a true statement about independent hotels?

Independent hotels are not affiliated with a specific chain

Chain hotels outnumber independent hotels in every country of the world

Independent hotels are mostly Luxury Class hotels in Urban Locations with more than 150 rooms

Independent hotels may never be managed by an outside entity

5) Which is a true statement about Management Companies?

Management companies have contracts where they receive payment for their services and/or some portion of profits

Management companies may manage only one chain

Management companies will always own the hotels they manage

Management companies serve the exact same role as asset management companiesSlide25

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.Slide26

Application 1 – Different types of players?

Find a recent article about a hotel company. (You can check HotelNewsNow.com or another hotel-related electronic news service or the internet.)

What type of hotel industry “player” is the company that you have chosen (chain, parent company, management company, owner or asset management company)?

Find other articles about other companies. Try to find one of each of the different types of players.

Are there companies or organizations that you find that are not one of the five major types of affiliations?Slide27

Application 2 – More about the players?

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).

What can you find about the current goals, company philosophy, number of hotels, number of staff, corporate locations and history of this organization.

See if you can find articles (HotelNewsNow.com or similar) with quotes from company representatives.

See if you can find out anything about the potential career-related opportunities that this company might offer.Slide28

Application 3 – Chain versus independent

hotels in countries around the world

Select a specific country somewhere in the world.

Obtain the STR Property and Room Count data for your country (by Chain and Parent Company).

Determine the number of Chain versus Independent hotels in your country and calculate the percentages based upon number of rooms.

Determine the top chains in your country by number of rooms. Notice chain differences around the world.

Determine the top parent companies in your country.Slide29

Part 2 - Hotel Industry Categorization –

Geographic CategoriesSlide30

Major Geographic Categories

The major geographic categories used by the hotel industry are:

World

Continent

Sub-Continent

Country

Market

Submarket or TractSlide31

Continents and Sub-Continents

STR defines Continents and Sub-Continents related to the hotel industry, different from the traditional seven continents you learned in geography class.

There are 4 continents: Americas, Europe, Mideast/Africa and Asia Pacific.

Each continent includes three to four sub-continents. Maps and lists of countries in each sub-continent are available.

The STR definitions roughly correspond to the UNWTO definitions when it comes to continents and sub-continents.Slide32

Countries

STR uses the UNWTO definition when it comes to recognizing countries.

Territories such as the U.S. Virgin Islands and Puerto Rico would appear as separate countries.

There are 213 countries with one or more hotels.

There are 41 countries with 50,000 rooms or more.

There are some countries with no properties in the STR Hotel Census database. Slide33

Markets

Market is one of the most important geographic categories below Country, especially for a hotel GM.

Markets are created based upon the number of hotels in an area and the participation (around 100+ participating hotels).

Markets are commonly thought of as cities, although they are also used to represent more rural areas outside of the major cities.

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. In very small countries, the whole country may be a market.

No market will ever cross country boundaries.Slide34

For example, there are four

metro markets

for each major city:

Memphis

Nashville

Knoxville

Chattanooga

And one

non-metro market

for everywhere else – 5. Tennessee Area.

Sample Markets in the U.S. State of Tennessee

(the logic when it comes to markets is similar everywhere in the world)

The same logic would be used for a small country with 4 big cities.Slide35

Submarkets or Tracts

A

Submarket

or

Tract is

a geographic subset of a Market.

The term “Tract” is used in North America, but the term “Submarket” is used outside of North America.

Tracts, like Markets are affected by the number of hotels and participation (around 30+ participating hotels). Some

counties may have a large number of tracts. In the U.S. there

638

tracts. Small countries may have

just a few or even just one.

The Tract category, like the Market category is very important, especially for hotel GMs. Hotel data is often displayed at the Market and Tract level, including on the STAR Report that is received by a hotel.Slide36

Submarkets/Tracts continued

There may be anywhere from one to ten or more tracts/submarkets in a market.

In a metro market, there is usually a tract for the CBD (Central Business District).

There may be other tracts in a city identified such as North/South/East/West, or Airport/Beach, or they may have names for suburban neighborhoods or highways.

In non-metro (rural) markets (such as “Area” markets), a tract may represent a small city that is not large enough to be a market by itself.Slide37

Sample Tracts in the State of Tennessee

(logic similar everywhere)

In the state of Tennessee here are the Tracts 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)Slide38

Revisions to Markets and

Submarkets/Tracts

STR makes small revisions to markets and tracts on a regular basis.

The changes are based upon:

Supply (new hotels opening)

Participation (new hotels submitting performance data)

Client feedback

Most of these revisions are made at the end of the year, after December STAR Reports and before January STAR Reports.

Companies are notified of these changes.Slide39

Additional Geographic Categories - optional

In addition to the six geographic categories on the prior pages, STR tracks many other geographic categories and fields, including:

Region

State

Postal Code

Country specific categories such as District or MSA

Latitude and longitude

Data may be available related to these additional categories.Slide40

Quiz Questions

6) Which is a true statement regarding geographic categorization?

STR geographic categories are limited to North America

STR uses the UNWTO definitions when it comes to recognizing countries

General managers of hotels do not need to know geographic categories

The hotel industry uses seven continents to categorize hotels

7) Which is a true statement regarding markets?

Markets include hotels that are in big cities, not rural areas

A country would never have more than 100 markets and never have less than 2 markets

No market will ever cross country boundaries

There is another name for Markets outside the U.S.

8) In descending order of geographic size, which option below is correct?

Continent, Sub-Continent, Country, Tract/Sub-Market, Market

Continent, Country, Sub-Continent, Tract/Sub-Market, Market

Continent, Sub-Continent, Market, Country, Tract/Sub-Market

Continent, Sub-Continent, Country, Market, Tract/Sub-Market

 Slide41

Quiz Questions continued

9) Which two geographic categories are the most important for a hotel GM?

Region and Market

Market and Tract/Sub-Market

Region and Tract/Sub-Market

Country and Tract/Sub-Market

10) Markets and tracts are created based on what two determining factors?

Geographic size and population

Geographic size and participation

Number of hotels and participation

Number of hotels and population

11) Which is a true statement regarding Tracts

Tracts are referred to as Sub-Markets outside of North America

Tracts are never used to represent a small city in a rural market

Tracts are geographic sub-divisions of a Region

A country will never have more than 100 TractsSlide42

Quiz Questions continued

12) Changes to how Markets and Tracts are geographically defined are generally made how often?

Monthly

Annually

Every five years

No regular scheduleSlide43

Application 4 – Sample Geographic Categories

Select a specific area such as a country (or state in the U.S.).

Obtain the STR Property and Room Count data for your country or state (by Market and Tract/Submarket).

Identify the metro markets and the non-metro markets in your area.

Identify the largest markets in your area. You can calculate the percentages of hotels (by Census Rooms) for each market.

Identify the tracts within each market. Are there downtown/CBD tracts? What are the largest tracts in your area?Slide44

Part 3 - Hotel Industry Categorization –

Non-Geographic CategoriesSlide45

Intro to Non-Geographic Categories

If you ask most people about a non-geographic category relevant to the hotel industry, you will most frequently hear about Star Ratings.

Star Ratings are important for hotels, but the problem is that they are inconsistent in some countries.

In some countries, stars are assigned by the government, a country hotel association or an independent organization.

In some countries hotels can have 1-5, 1-4 or 1-7 stars.

In some areas hotels can have half a star, for example 2.5 or 3.5 stars.Slide46

Non-Geographic Intro - continued

In many countries, stars are assigned by OTAs and online review companies.

So a hotel could have 5 stars according to one organization, 4 according to another and 3 according to a third.

So star ratings are not globally consistent.

If you attend an industry conference, where performance is analyzed by different levels of hotels, they will typically not be displaying data by star categories.

The following categories that will be described on the next pages are the ones that are used by the hotel industry.Slide47

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 slide. Note that they will range from Luxury (with an average close to $300) down to Economy (with an average close to $50).

The average ADR of the Independent Scale group (independent hotels) in the US and world is close to $110.Slide48

Occ , ADR & Room Revenue - 12 Month Ending December 2015

*Similar ADRs as U.S., this data is available for any area of the world

Global Scales

Scale

Properties

Rooms

Occupancy

ADR*

Room Revenue

Luxury Chains

1,948

519,378

67.3%

$269.75

$33.8B

Upper Upscale Chains

5,017

1,375,423

70.6%

$161.45

$

56.4B

Upscale Chains

10,787

1,818,632

70.9%

$121.90

$57.4B

Upper Midscale Chains

15,824

1,832,659

66.9%

$99.21

$44.0B

Midscale Chains

11,516

1,106,361

63.0%

$76.36

$19.6B

Economy Chains

20,143

1,754,590

62.9%

$56.70

$22.6B

Independents

103,501

7,411,723

63.4%

$124.24

$215.1BSlide49

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.Slide50

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.Slide51

Which Chains are currently in which

Scale groups?

There are lists that follow that show which Chains are in which Scale groups.

The sample list on the next slide shows the global Luxury chains with more than 25 rooms.

It is possible to obtain complete lists of all chains in all scale groups. You can also get lists for specific countries or areas of the world.

It is important to have a general perspective of which chains are in which Scale groups. No need to memorize.Slide52

Global Luxury Chains (with 25 or more

properties)

– optional

Chain

Properties

Rooms

InterContinental

181

60,795

Sofitel Luxury Hotels

117

30,291

Ritz-Carlton

94

26,779

Four Seasons

92

20,036

Luxury Collection

91

17,895

Shangri-La Hotel

84

33,906

JW Marriott

77

33,730

Kempinski

Hotels

74

20,375

Fairmont

72

28,880

W Hotel

46

13,141

Grand Hyatt

44

23,975

Taj Group

41

6,128

Park Hyatt

37

7,189

Anantara

36

4,426

St Regis

35

8,060

Amanresorts

International

Pte

Ltd

29

964

Daiwa Royal Hotels

27

7,173

Hipotels

27

5,282

Mandarin Oriental Hotel Group

27

6,741

Conrad

25

7,719

Waldorf Astoria

25

10,296

As of December 2015Slide53

Class

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.Slide54

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.Slide55

Example – Slotting independent hotels into Classes

Acme Hotel

2015 Annual ADR

$123.50

Luxury Chains

Annual 2015 ADR Range $150-$220

Upper Upscale Chains

Annual 2015 ADR Range $120-$150

Upscale Chains

Annual 2015 ADR Range $100-$120

Upper Midscale Chains

Annual 2015 ADR Range $85-$100

Midscale

Chains

Annual 2015 ADR Range $70-$85

Economy Chains

Annual 2015 ADR Range

$55-$70

Market

Because the hotels

rate falls within the

Upper Upscale rate

range of $120-$150,

they are slotted as

Upper Upscale Class

Independent HotelSlide56

Importance of the Class Category

Class is relied upon heavily, especially outside North America.

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, such as Tract Scale.

Non-North

American STAR reports compare a subject hotel to one or more industry segments which could include Market or Submarket Class.

Non-NA hotels would not be compared

to Market or

Submarket Scale.Slide57

*Similar to the average ADRs by Scale

Global

Hotels by Class

Class

Properties

Rooms

Occupancy

ADR*

Room Revenue

Luxury Class

6,958

1,041,460

67.5%

$272.38

$69.0B

Upper Upscale Class

14,513

2,329,367

70.1%

$162.23

$95.8B

Upscale Class

27,642

3,295,031

70.1%

$122.56

$102.2B

Upper Midscale Class

33,668

3,400672

66.6%

$100.19

$82.2B

Midscale Class

32,910

2,548,458

62.7%

$81.38

$47.3B

Economy Class

54,762

3,362,014

61.6%

$63.59

$48.0B

Occ , ADR and Room Revenue – 12 Month Ending December 2015Slide58

Additional Non-geographic Categories - optional

In addition to the Scale and Class categories, STR tracks several other non-geographic categories, including:

Location

Extended Stay

Boutique

Destination Resort

Additional Hotel Types such as

All-inclusive,

Convention, All-suite, …

More information about these categories can be found in “Appendix 2 – Additional Categories”.

Slide59

Quiz Questions

13) Which two non-geographic categories are the most important for a

hotel GM?

Scale and Class

Scale and Location

Location and Type

Class and Type

14) How many Scale categories are there compared to Class categories?

6 Scale categories and 6 Class categories

6 Scale categories and 7 Class categories

7 Scale categories and 6 Class categories

7 Scale categories and 7 Class categories

15) Which one of the following is an accurate statement regarding Scale and Class groups and a single chain?

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

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

A Ritz Carlton hotel will always be in the same Scale and Class groups in every country throughout the world

Ritz Carlton may choose which Scale and which Class they are inSlide60

Quiz Questions continued

16) Which one of the following is an accurate statement regarding Class groups?

The names of the Class group are very different than the names of the Scale groups

Class groups are more popular and relevant in North America rather than outside North America

Independent hotels are slotted into Class groups based upon the ADR of the independent hotel compared to the chain hotels in the same market

Once an independent hotel is slotted into a Class group, it will never change

17) Which one of the following is NOT a Location Category used by the hotel industry?

Airport

Suburban

Oceanfront

Urban

18) Which is NOT a valid non-geographic category?

Extended Stay

Boutique

Guest Satisfaction Rating

Destination ResortSlide61

Application 5 – Categories for a Hotel

Obtain the STR Hotel Census Database for your country (or state). Contact the STR SHARE Center for assistance.

Select a specific hotel and then determine all of the various categories for your hotel (geographic and non-geographic groups).

What are the major geographic categories: continent, subcontinent, country, market, and tract/submarket? What additional categories (region or state/province if applicable)?

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?

What else can you tell about the hotel from the Census database?Slide62

Application 6 – Categories for a Market,

starting a “Market Study”

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).

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.

Select a specific area such as a country or city (or state).

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.Slide63

Application 6 – “Market Study” continued

Identify the markets and tracts/submarkets within the area that you have selected. How many hotels are in each geographic category?

Determine the number of hotels in each Scale and Class Category. You can also do this for Chain, Location, and Extended Stay group.

You could check the Census database for your area and determine if there are any special type hotels (Boutique, Destination Resorts, Conference, …)

Summarize this information. What observations can you make about the area that you are studying?Slide64

Application 6 – Market Study, Next Step

The Market Study that you started in Application 2 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.

Later you will learn about various industry reports that contain different types of data related to an area.

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).

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 “Industry Performance Reports” training.Slide65

Part 4 - Benchmarking in the

Hotel Industry –

Introduction to Competitive SetsSlide66

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 setsSlide67

Benchmarking 101: my hotel vs

. the competitionSlide68

Introduction to Benchmarking

“Benchmarking” happens all around us in the world. It also takes place in many industries, not just the hotel industry.

Benchmarking provides a point of reference to analyze your performance.

If all you can do is to compare your performance this year to your performance last year, you may not have the whole picture.

Benchmarking my performance to a set of my competitors provides a much more accurate perspective.

You may think you had a great month or a great week and not realize that everyone else did much better than you.Slide69

Benchmarking in the Hotel Industry

Individual

hotels compare their performance to the performance of a “

competitive set

” of hotels. This information is carefully tracked by the “subject” hotel, the owner of the comp set.

Individual

hotels can also compare their performance to hotels in pre-defined

industry segments

near their hotel, i.e. the market or tract/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.Slide70

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.Slide71

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 (microeconomic)Slide72

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.Slide73

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 became a reliable place for hotels to get accurate information about their set of competitors.

Two foundations of the STAR program relate to aggregating and confidentiality.

Aggregating

means finding the averages based on the data from a group of hotels so that each individual hotel is protected.

Confidentiality

rules ensure no individual property data is ever disclosed to another property.Slide74

When are Comp Sets created?

Competitive sets are normally created by the time the hotel opens.

Sometimes comp sets are created long before the hotel opens while it is still under construction.

The hotel staff can select a competitive set and can receive an “Under Construction” STAR Report (sometimes referred to as a “Pre-Opening STAR Report”).

That way the new hotel staff can track the performance of the comp set prior to the opening of the hotel. Obviously there data will not be present until they open.Slide75

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 such as a regional manager)

the GM

the sales and marketing team

t

he revenue manager

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 versus the comp set.Slide76

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.Slide77

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.Slide78

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, especially if that data is important to you:

Monthly

– this is usually the default

Daily

– most hotels submit daily data each day or each week

Segmentation

– many Luxury and Upper Upscale hotels submit Rooms Sold and Revenue broken down by Transient, Group, and Contract (some hotels have a second comp set related to this data)

Additional Revenue

– some hotels submit Food & Beverage and Other Revenue in addition to Room RevenueSlide79

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. This is really the main thing you need. The actual distance from competitors may be very different for urban, suburban, interstate or “small town” (rural) hotels.

Market and Tract/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 something like an airport, a downtown area, or a beach/resort area.Slide80

Key Considerations - Pricing

On the list of competitors there will be several fields that provide some indication of the price level of the competitors.

Class

– The Class Category is probably the best to use, because it identifies similar chains hotels as the subject, as well as independent hotels that are in a similar price level. It is not uncommon to look for competitors in one Class category above or below the subject.

Scale – The Scale category will just identify similar chain hotels.

Fields such as Rack Rates (public info gathered through surveys) and Price Level are not as reliable for pricing information.

Price related information can also be found on the internet.Slide81

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.

Meeting Space

– Compare these values for possible competitors.

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.

Amenities – Check these fields (Restaurant, Spa,

Waterpark

, Oceanfront, …) to help indentify similar hotels.Slide82

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 (one of the “P”s) versus another.Slide83

Additional Considerations – External Info

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.

Many times, hotel staff will visit the competitors and talk to guests, or conduct surveys.

Remember, you are trying to determine if a customer stays at your hotel, what other properties did they consider?Slide84

Rules related to creating Comp Sets

STR has a set of rules when it comes to creating competitive 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. Hotels are encouraged to have four or more so that if a hotel does not report for a time period for some reason, the comp set data will still appear.

In Europe and Mideast/Africa, comp sets must include four or more hotels in addition to the subject.

The second set of rules relate to “

percentage checks

” and help to ensure that the data of a single hotel, chain or company is not isolated.Slide85

Comp Sets Rules - continued

When

percentages are calculated the rooms of the subject hotel, as well as those in the same chain and parent company, are excluded

. (We have to assume the subject hotel can get that data from corporate and isolate remaining hotels.)

No single property or chain (e.g. Holiday Inn, Comfort Inn, etc.) can account for more than 40% of the total participating room supply of a

comp

set (50% outside North America).

No single company (e.g. Starwood, Choice, Interstate, Host) can account for more than 60% of the total participating room supply of a

comp

set.

They are referred to as the “40, 40, 60”

rule in North America and “50, 50, 60” outside of North America.

Slide86

Creating a Competitive SetHoliday Inn (Subject Hotel) 180 Rooms

Hampton Inn (Competitor) 220 Rooms

La Quinta Inn &

Stes

(Competitor) 160 Rooms

Holiday Inn Express (Competitor) 155 Rooms

Comfort Inn (Competitor) 200 Rooms

Holiday Inn (Competitor)

165 Rooms

Total Rooms 1,080 RoomsSlide87

Creating a Competitive SetHoliday Inn (Subject Hotel)

180 RoomsHampton Inn (Competitor) 220 Rooms

La Quinta Inn &

Stes

(Competitor) 160 Rooms

Holiday Inn Express (Competitor) 155 Rooms

Comfort Inn (Competitor) 200 Rooms

Holiday Inn (Competitor)

165 Rooms

Total Rooms 900 Rooms

First – The rooms of the subject hotel are removed from the total.Slide88

Creating a Competitive SetHoliday Inn (Subject Hotel)

180 RoomsHampton Inn (Competitor) 220 Rooms

La Quinta Inn &

Stes

(Competitor) 160 Rooms

Holiday Inn Express (Competitor) 155 Rooms

Comfort Inn (Competitor) 200 Rooms

Holiday Inn (Competitor)

165 Rooms

Total Rooms 735 Rooms

Second – Rooms of any competitors from the same chain are removed from the total.Slide89

Creating a Competitive SetHoliday Inn (Subject Hotel)

180 RoomsHampton Inn (Competitor) 220 Rooms

La Quinta Inn &

Stes

(Competitor) 160 Rooms

Holiday Inn Express (Competitor)

155 Rooms

Comfort Inn (Competitor) 200 Rooms

Holiday Inn (Competitor)

165 Rooms

Total Rooms 580 Rooms

Third – Rooms of any competitors from the same parent company are removed from the total.Slide90

Creating a Competitive SetHoliday Inn (Subject Hotel)

180 RoomsHampton Inn (Competitor) 220 Rooms 38%

La Quinta Inn &

Stes

(Competitor) 160 Rooms 28%

Holiday Inn Express (Competitor)

155 Rooms

Comfort Inn (Competitor) 200 Rooms 34%

Holiday Inn (Competitor)

165 Rooms

Total Rooms 580 Rooms

Fourth – The rooms of each competitor are divided by the total number of rooms.Slide91

Hint - 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 only a slight variation by scale.

STR has no maximum limit of hotels in a comp set.Slide92

“Nameback” and “Reverse Comp Sets”

–

optional

In the US, only 45.13% of the properties in your primary Comp Set name you in their primary Comp Set. This is the “Nameback” percentage. (That is surprisingly low, which goes back to the question regarding the accuracy of comp sets.)

The average U.S. hotel is named as a competitor by 2.8 hotels that aren’t in its Comp Set.

The “Reverse Comp Set” for a hotel are the specific properties that name your hotel in their Comp Set.

It is possible to obtain the members of the Reverse Comp Set for your hotel from STR (for North America properties only).Slide93

When are Comp Sets changed?

Comp sets may need to be changed due to:

Changes in the subject hotel, i.e.: renovation, conversion, new management or owner company, contract changes.

Changes in the market, i.e.: new competitive hotels open.

Strategic changes, i.e.: repositioning, improving comp set strength.

It is possible to change your comp set at any time, although many people wait until the beginning of the year. (STR has no rule related to when or how often hotels can change their comp set.)

Some companies make changes at specific times of the year.Slide94

Rules related to changing Comp Sets

STR has rules related to changes that address “

isolation

” issues.

If a property wishes to change their comp set, they must do so by a

net change of two

or more properties. They can add two hotels, or remove two (as long as the remaining hotels is not below the minimum sufficiency number). They could also add one and remove one, add two and drop one, drop two and add one, etc..

If only making a change with two properties, both must be in a different chain, parent company and management company; and both must be different from the subject hotel.Slide95

Changing Comp Sets Rules continued

These rules ensure that a single property’s data is never isolated.

The exceptions to the “change rules” is that a hotel can add a brand new property which has been open

less than six months

.

Or a hotel can remove a property from its comp set that has

stopped participating after three consecutive months

. This applies to monthly participation, not segmentation data reporting.Slide96

Additional Comp Sets

There are many cases where hotels have more than one comp set. (There are nearly 2,500 US hotels and 2,500 non-US hotels that have additional Comp Sets.)

Hotels typically think in terms of a primary comp set, which is frequently related to the bonuses.

Hotels with multiple comp can also compare the performance of one comp set versus a second comp set.

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.Slide97

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 segmentSlide98

Quiz Questions

19) Benchmarking in the hotel industry takes place at what level?

Property level for an individual hotel versus their Competitive Set

Corporate level for a hotel company, for example one brand versus others

Geographic level for tourism organizations, for example city versus comparable cities

All of the above levels

20) Comp sets are used for many purposes in hotel operations, which of the following is one of these purposes?

Comp sets can be used to aid the sales and marketing departments in determining the effectiveness of various pricing decisions

Comp sets can be used in management contracts for performance requirements

Comp sets can have an effect on a general managers compensation

All of the above are examples of how comp sets are used

21) The four key considerations when creating a Competitive Set are?

Participation, Proximity, Policy and Product

Participation, Proximity, Pricing and Product

Participation, Parking, Policy and Pricing

Participation, Perimeter, Pool and PricingSlide99

Quiz Questions continued

22) All of the following are good reason for a hotel to have an additional competitive set, except which one?

Have a local competitive set based upon geography and another based upon a special feature or niche, for example:

waterpark

, boutique, or conference

Have different sets for weekday/weekend or group/transient business

Have one set that you can easily beat and another which is a realistic target

Different entities may not agree, for example, chain versus management company

23)

What is the earliest time in which a competitive

set

may be

created?

A competitive set may be created once the hotel has opened

A competitive set may be created while the hotel is under construction

A competitive set may be created on the one year anniversary of a hotel’s opening

A competitive set may be created

before a hotel is under construction

24) Who creates a competitive set for a chain hotel?

Only the General Manager

Only the Revenue Manager

Only the Sales and Marketing Managers

It is a joint effort involving many stakeholdersSlide100

Quiz Questions continued

25) What is the average number of hotels in a competitive set?

Between 3 and 4

Between 4 and 5

Between 5 and 6

Between 6 and 7

26) Which is a valid rule related to creating a competitive set?

Comp sets must include five or more hotels

No single property or chain can account for more than 25% of the total participating room supply of a comp set

No single company can account for more than 75% of the total participating room supply of a comp set

When percentages are calculated, the rooms of the subject hotel, as well as the same chain and parent company, are excluded

27) What is a Reverse Comp Set?

Properties that have seen a significant decline in occupancy

Properties that have recently changed affiliations

Properties that you previously have included in your comp set

Properties that name your hotel in their competitive setSlide101

Quiz Questions continued

28) When can a competitive set be changed?

Only if your hotel has changed affiliations

At any time, although many wait until the beginning of the year

Only at the beginning of the year

Only when a hotel has a new general manager

29) Which is NOT a valid rule related to changing a competitive set?

If adding two hotels to a competitive set, both must be in different chains

A single hotel may be added to a competitive set if it has been open less than six months

A single hotel may be added to a competitive set at any time

Any change must involve two or more hotels, e.g. add one/drop one, add two, drop two, etc.Slide102

Application 7 – Creating Comp Sets

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 Nashville. You can obtain samples relevant to your area if you would like.

Loews Vanderbilt Plaza Hotel

– only Luxury chain hotel near Vanderbilt campus, west of town

Marriott Nashville Airport

– Upper Upscale hotel near the airport on the east of town

Courtyard Nashville Downtown

– Upscale hotel downtown

Holiday Inn Nashville Vanderbilt Downtown

– Upper Midscale hotel between campus and downtown

Best Western Suites Near Opryland Nashville

– Midscale hotel near airport

Rodeway

Inn Nashville

– Economy hotel north of townSlide103

Application 7 continued

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.

In each of these fields, compare the values of the subject hotel to the potential competitors to narrow down the choices.

Check the Participation fields to see what types of data the Subject hotel submits compared to the potential competitors.

What other fields could be useful to identify competitive hotels?

You can use the internet to collect additional data regarding competitors, related to pricing, hotel web sites, amenities and target customers.

Can you suggest a second comp set for your subject hotel?Slide104

Application 7 – Excel Alternative

Depending upon your experience with Excel, here is a suggested set of steps to help determine potential competitors using basic Excel steps.

Obtain a Radial Participation List for a specific hotel. Highlight the subject hotel, the whole row.

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.

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.Slide105

Application 7 alternative continued

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.

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.

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.

Check the Participation fields to be sure the potential competitors submit similar data as the subject.

This method helps you come up with a good list of potential candidates. Investigate the competitors more to confirm your decisions.Slide106

Application 7 finishedSlide107

The SHARE Center

Supporting Hotel-related Academic Research and Education

Hotel Math Fundamentals,

the Metrics used by the Hotel Industry

– Review Version

Slide108

Property Data Comp Set Data

Industry Data

International Issues

Math - Table of ContentsSlide109

Note regarding Application Exercises

There are Application Exercises that are suggested at the end of each section. These are very 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 “Math Fundamentals application exercises” that comes 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.Slide110

Part 1 - Property Data

Raw Data

Key Performance Indicators

Percent Changes

Date-Related Definitions

Multiple Time PeriodsSlide111

How Does STR Obtain Raw Data?

Most raw property sales data is directly exported from the systems of the hotel companies. This helps increase the reliability of the data. Companies send STR a raw data file each month, week, and/or day.

Some hotels and

smaller companies

enter the data on the

STR web site. The

web site can be used

to enter monthly or

daily data.

(Users can also enter Segmentation data via the web – later)Slide112

Sample Raw Data

Here is a sample monthly raw data file that STR would receive, containing data for multiple hotels:

In most cases, companies provide their own unique hotel identification without a hotel name.

A file would also have a Currency indicator, i.e.: USD, EUR, GBP.

Fictitious data, of courseSlide113

Data Error Checks

STR performs a large volume of comprehensive error checks upon the raw data.

New data is compared to prior data for consistency.

There are Occupancy and ADR limits related to geography and type of hotel. STR also tracks special events that would cause unusual Occupancies and ADRs.

Any exceptions are verified with the data provider (company or hotel) before the data is accepted.Slide114

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. Slide115

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.Slide116

Occupancy

DefinitionThe 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 Slide117

Monthly Occupancy - Formula

You could multiply times 100 (then format as a number with

one decimal) or format as a percentage (adds % symbol).

Hotel Math Fundamentals Excel Review.xlsx - Occupancy

A

B

C

D

E

F

G

1

Supply

Demand

Revenue

(Formula)

Occupancy (%)

2

Jan

20

15

3100

2345

198765

C2 / B2 * 100

75.6

3

Feb

20

15

2800

2002

175432

C3 / B3 * 100

71.5

4

Mar

20

15

3100

1776

175012

C4 / B4 * 100

57.3

5

Apr

20

15

3000

2468

234567

C5 / B5 * 100

82.3

6

May

20

15

3100

2987

312345

C6 / B6 * 100

96.4Slide118

Hint – High Occupancies

Normally Occupancies for a hotel will always be below 100%.

It is not uncommon for a hotel to have a daily Occupancy of 100% or greater if they sell out for a night.

It is less common for a hotel to have a monthly Occupancy of 100% or greater, but it does happen.

There are occasions where a hotel will have a monthly Occupancy greater than 100%. This might happen in the case of an Airport hotel that could actually sell the same room twice in the same day.Slide119

ADR

DefinitionA 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 / DemandSlide120

Monthly ADR - Formula

You could format as a “$” (adds symbol) or as a number with two decimals.

Hotel Math Fundamentals Excel Review.xlsx - ADR

A

B

C

D

E

F

G

1

Supply

Demand

Revenue

(Formula)

ADR

(

$

)

2

Jan

20

15

3100

2345

198765

D2 / C2

84.76

3

Feb

20

15

2800

2002

175432

D3 / C3

87.63

4

Mar

20

15

3100

1776

175012

D4 / C4

98.54

5

Apr

20

15

3000

2468

234567

D5 / C5

95.04

6

May

20

15

3100

2987

312345

D6 / C6

104.57Slide121

RevPAR

DefinitionA 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 / SupplySlide122

Monthly RevPAR – Formula

You could format as a “$” or as a number with two decimals.

Hotel Math Fundamentals Excel Review.xlsx - RevPAR

A

B

C

D

E

F

G

1

Supply

Demand

Revenue

(Formula)

RevPAR

(

$

)

2

Jan

20

15

3100

2345

198765

D2 / B2

64.12

3

Feb

20

15

2800

2002

175432

D3 / B3

62.65

4

Mar

20

15

3100

1776

175012

D4 / B4

56.46

5

Apr

20

15

3000

2468

234567

D5 / B5

78.19

6

May

20

15

3100

2987

312345

D6 / B6

100.8Slide123

Hint – RevPAR

Of the three Key Performance Indicators, ADR and RevPAR are both dollar amounts. To get the ADR value, you divide Revenue by Rooms Sold or Demand, whereas to get the RevPAR value, you divide Revenue by Rooms Available or Supply.

In most cases the RevPAR amount should be lower than the ADR amount. Sometimes this can help when checking your math. The only time that would not be the case would be if the Rooms Sold number was greater than the Rooms Available. In that case the Occupancy would be greater than 100%.

Some people calculate RevPAR by multiplying ADR times Occupancy. That is not as reliable due to rounding.Slide124

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.

Often people will talk about whether a RevPAR increase (or decrease) is attributed more to an increase (or decrease) in Occupancy or ADR.

Frequently when a hotel (or the GM) is evaluated or measured, RevPAR is the metric that is being looked at.Slide125

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”.Slide126

Demand Percent Change

You could multiply times 100 or format as a percentage.

Hotel Math Fundamentals Excel Review.xlsx - Demand Percent Change

A

B

C

D

E

F

G

1

This Year

Last Year

Percent Change

2

Demand

Demand

(Formula)

Demand

3

Jan

20

15

2345

2456

(B3-D3)/D3*100

-4.5

4

Feb

20

15

2002

2112

(B4-D4)/D4*100

-5.2

5

Mar

20

15

1776

1750

(B5-D5)/D5*100

1.5

6

Apr

20

15

2468

2345

(B6-D6)/D6*100

5.2

7

May

20

15

2987

2555

(B7-D7)/D7*100

16.9Slide127

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.Slide128

Hint - % Changes for Raw Values

The Percent Changes for raw values such as Supply, Demand, and Revenue are very valuable.

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).Slide129

ADR Percent Change

You could multiply times 100 or format as a percentage.

Hotel Math Fundamentals Excel Review.xlsx - ADR Percent Change

A

B

C

D

E

F

G

1

2015

2014

Percent Change

2

ADR

ADR

(Formula)

ADR

3

Jan

84.76

81.93

(B3-D3)/D3*100

3.5

4

Feb

87.63

88.85

(B4-D4)/D4*100

-1.4

5

Mar

98.54

100.07

(B5-D5)/D5*100

-1.5

6

Apr

95.04

95.24

(B6-D6)/D6*100

-0.2

7

May

104.57

116.93

(B7-D7)/D7*100

-10.6Slide130

Difference between Percent Change and Point Change

STR typically shows Percent Change numbers, such as Occupancy Percent Change.

Sometimes people talk about “Point Change”.

If the Occupancy was 51% this year compared to 50% last year, the Point Change would be “1” and the Percent Change would be 2%.

STAR Reports always show Percent Change.Slide131

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.Slide132

Hint – Occupancy is always related to Supply and Demand, even with Percent Changes

This is more than just a formula. It is an important basic principle.

If Supply remains the same and Demand goes up, then Occupancy will go up.

If Supply goes up and Demand remains the same, then Occupancy will go down

If Supply goes up and Demand also goes up, then you have to do the math to see what will happen to Occupancy. It will depend upon whether Supply or Demand increased at a higher rate.Slide133

Examples – Supply and Demand % Changes

Suppose in a market the Supply increases 5% and the Demand increases 5%. What will happen to the Occupancy? (It will be 0%.)

Suppose that in the market, the Supply goes up 5% and the Demand goes up 6%. What will happen to the Occupancy? (It will be up 1%.)

What if the opposite occurs? The Supply goes up 6% and the Demand goes up 5%. What will happen to the Occupancy? (It will be -1%, in other words, down 1.)

Slide134

Hint – RevPAR % Change

RevPAR Percent Change is roughly the combination of Occupancy and ADR Percent Change. (This is great to know for checking your math.)

If Occupancy Percent Change is 2% and ADR Percent Change is 2%, than RevPAR Percent Change will roughly be 4%. You have to actually do the math to get the exact amount.

If Occupancy Percent Change is 2% and ADR Percent Change is -2%, than RevPAR Percent Change will roughly be 0%. Again, you have to do the math to get the exact amount.Slide135

The most common date-related definition is a month. Monthly data is often used when evaluating performance.

This is also the easiest because it is almost always the same, one year to the next. We compare the data for July 1 through 31 this year to July 1 through 31 last year.

The only exception is in the case of Leap Year. STR uses a special methodology for handling Leap Years.

Months do have a different number of Weekday and Weekend days from this year to last year, which is important to remember.

Hotel

Date-Related

Definitions - MonthSlide136

In addition to monthly data, daily data is critical to the hotel industry. Data is analyzed at the daily level as well as aggregations of daily data. Here are common groups of days:

Week = Sunday through Saturday

Weekday

= Sunday through Thursday

Weekend

= Friday and Saturday, this does differ in various parts of the world, i.e. the Mideast (Iran, UAE, Bahrain, Afghanistan, …)

Day of Week

= data for individual days of the week, i.e. Day of Week per month or Day of Week per year

Hotel

Date-Related Definitions - DailySlide137

Percent Changes - Daily vs. Monthly

The formulas for daily KPIs and Percent Changes are

the same as for monthly. But obviously, the date fields are different:

201507 – monthly

20150725 – daily

Monthly percent changes always compare the

current month this year to the same month last year

. So July of 2015 would be compared to July of 2014:

201507 is compared to 201407

So the formula would be:

(201507 value – 201407 value)/201407 value * 100Slide138

Comparables for Daily Data

Daily percent changes are

not based upon exact dates

. July 16 in 2015 is a Thursday, but July 16 in 2014 is a Wednesday.

Daily percent changes are based upon “

comparable days

”, in other words the same day of week last year with the closest date:

Thu 20150716 is compared to Thu 20140715

Sat 20151031 is compared to Sat 20140101

The actual dates will always be off by one or two days, depending upon leap year. So the formula would be:

(20150716 value – 20140715 value)/20140715 value * 100Slide139

Analyzing Percent Change Numbers

Percent changes compare the number this year to the number last year. These numbers are analyzed very closely to try and evaluate performance. When doing so, there are lots of things to take into consideration:

Economic Cycles

- What is the general trend over time? Are Occupancies or ADRs going up or down or are they constant? A lot of times numbers are going up, so you are hoping to see positive percent changes.

At other points in time, especially in an economic downturn, some numbers are going down. In this case, a negative number might be normal. Your goal may be to have a smaller negative number than last year or than other hotels.Slide140

Analyzing Percent Changes continued

Calendar

– When looking at monthly numbers, always check the numbers of weekends compared to weekdays. You may be comparing a month this year with 8 weekend days to the same month last year that had 10 weekend days. If your hotel does significantly better on the weekends, than your percent change numbers may be down.

Holidays

– These can have unusual affects on percent changes. If a holiday like Valentines Day or Christmas (or any religious holiday) falls on or near a weekend, that can have a positive affect for the month whether that is this year or last year.

Some holidays (Easter and other religious holidays) actually move from one month to another month over different years, which can cause major distortion to percent changes.Slide141

Analyzing Percent Changes continued

Special Events

– There are many examples of special events that need to be remembered when analyzing percent changes. Special events can include conferences, sporting events, political events, weather-related events or entertainment events. You can have attractions that start or close nearby.

Most of these events have a positive impact upon performance. If the event took place this year, percent changes will be affected in a positive direction. But if the event took place last year, the percent changes will be affected in a negative direction.

Hotel-Specific Events

– Things like renovations or the open or closure of something within the hotel (pool, restaurant)Slide142

Analyzing Percent Changes - Conclusion

Special events and unusual situations will affect monthly and daily percent changes. A good GM will always be familiar with things like these to help understand performance.

Taking them into consideration ahead of time can help increase the accuracy of forecasting and pricing decisions.

Later in the training we will talk about using hotel industry data to conduct an “Impact Analysis”. For example, what was the affect of the Olympics on the hotel industry in a city?

Hotel staff can also obtain raw property data to analyze the impact of a special event. For example, what happened in our hotel last time Valentines Day fell on a weekend?Slide143

Methodology – Monthly Multiple Time Periods

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.Slide144

Methodology – Daily Multiple Time Periods

Multiple time periods for daily data include:

Current Week

– the seven days, starting on Sunday and ending on Saturday.

Month-to-Date

(MTD) – The 1

st

of the current month through the current day of the month.

Running 28-Day

– the current day plus the prior 27 days.

Running 4-Week

– the current day plus the prior three same days of the week.

The metrics for all of these time periods are based upon the

aggregated raw daily data

. The same procedure is used.Slide145

YTD Supply, Demand, & Revenue

You can use the SUM function to aggregate the raw values.

Hotel Math Fundamentals Excel Review.xlsx - YTD Supply Demand Revenue

A

B

C

D

1

Supply

Demand

Revenue

2

Jan 2015

3100

2345

198765

3

Feb

20

15

2800

2002

175432

4

Mar

20

15

3100

1776

175012

5

Apr

20

15

3000

2468

234567

6

May

20

15

3100

2987

312345

7

(Formula)

sum(B2:B6)

sum(C2:C6)

sum(D2:D6)

8

May YTD

15100

11578

1096121Slide146

YTD Occupancy, ADR, & RevPAR

Hotel Math Fundamentals Excel Review.xlsx - YTD

Occ

, ADR, RevPAR

Aggregate the raw values, then apply same formulas as before.

A

B

C

D

E

F

G

1

Supply

Demand

Revenue

Occupancy

ADR

RevPAR

2

Jan

20

15

3100

2345

198765

3

Feb

20

15

2800

2002

175432

4

Mar

20

15

3100

1776

175012

5

Apr

20

15

3000

2468

234567

6

May

20

15

3100

2987

312345

7

May YTD

15100

11578

1096121

76.7

94.67

72.59

8

(Formula)

C7/B7*100

D7/C7

D7/B7Slide147

How not to calculate metrics for multiple time periods?

Numbers for multiple time periods

never use straight averages

of monthly or daily 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.Slide148

Other Multiple Time Periods

The Raw data for other monthly and daily time periods are calculated the same way by aggregating the raw data for every month or day in the entire time period.

The KPIs (calculated metrics of Occupancy, ADR, and RevPAR) for multiple time periods are always calculated from the aggregated raw data.

The standard formulas are applied to the aggregated raw data.Slide149

Hint – Monthly Multiple Time Periods

Current Month numbers show the performance for a single month and YTD numbers show how performance is unfolding for the current year.

Running 3-Month numbers show a little more of a performance trend instead of just the Current Month number.

Running 12-Month numbers show a longer performance trend. These numbers can be helpful at the beginning of the year when the YTD number only includes a small number of months. Running 12-Month numbers also remove seasonality effects.

STR frequently uses Running 12-Month data in historic graphs.Slide150

Hint – Daily Multiple Time Periods

Individual Daily numbers show the performance for a single day.

Weekly numbers show the performance for a seven-day time period.

The Month-to-Date number shows how performance is unfolding for the current month.

Running 28-Day numbers show a longer performance trend when it comes to daily data. These numbers can be helpful at the beginning of the month when the MTD number only includes a small number of days. Slide151

Hint - Running 4-Week Data on a Weekly Report

The Weekly Reports compare individual daily data for the Current Week to the Running 4 Week numbers.

The Running 4 Week numbers are the aggregated data for a single day for the last 4 weeks, for example the last 4 Mondays (the current Monday plus the prior 3).

A hotel can compare their Monday performance metrics to the average of the last 4 Mondays to see if they did better or worse on the current day compared to the recent trend.

Sometimes this is referred to as “Running 28 Day data by Day of Week” on the Weekly STAR Report.Slide152

% Changes for Multiple Time Periods

The percent changes for multiple time periods are based on the aggregated values (the calculated metrics which are derived from the aggregated raw values) for this year compared to the same metrics (which are also derived from the aggregated raw values) for last year.

Percent changes for daily data are usually based upon groups of comparable days. When the Current Week this year is compared to last year, that is based on seven comparable days.

The only exception when it comes to daily data is Month-to-Date numbers which are based on a date-to-date comparison, for example 1-15 this year vs. 1-15 last year.Slide153

YTD Percent Changes (in five simple steps)

Hotel Math Fundamentals Excel Review.xlsx - YTD Percent Changes

Five steps – 1. Aggregate TY raw data, 2. Apply KPI formulas to TY aggregated data,

3. Aggregate LY raw data, 4. Apply formulas to LY data, 5. Apply % Change formulas

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

This Year

Last Year

Percent Changes

1

Date 

Supply

Demand

Revenue

Occu-

pancy

ADR

Rev-PAR

Supply

Demand

Revenue

Occu-

pancy

ADR

Rev-PAR

Occu-

pancy

ADR

RevPAR

2

Jan

3100

2345

198765

3100

2456

201234

3

Feb

2800

2002

175432

2800

2112

187654

4

Mar

3100

1776

175012

3100

1750

175123

5

Apr

3000

2468

234567

3000

2345

223344

6

May

3100

2987

312345

3100

2555

298765

7

May YTD

15100

11578

1096121

76.7

94.67

72.59

15100

11218

1086120

74.3

96.82

71.93

3.2

-2.2

0.9

8

(Formula)

(E7-K7)/K7*100

(F7-L7)/L7*100

(G7-M7)/M7*100Slide154

Quiz Questions

30) The definitions for Supply, Demand and Revenue used by STR and others in the lodging industry are taken from what source?

Lodging Industry Accounting Fundamentals Guide

Uniform System of Accounts for the Lodging Industry

Hotel Book Keeping for Dummies

Modern Hotel Industry Accounting

31) Which statement is true regarding raw data that is submitted to STR?

A small amount comes in the form of raw data files

Most data is entered online

There are limited error check programs

The majority of data is exported from the hotel company systems

32) Which is true regarding the type of performance data (Supply, Demand, Revenue) that STR receives?

Daily only

Daily and monthly only

Daily, weekly, and monthly

Daily, weekly, monthly and quarterlySlide155

Quiz Questions continued

33) You receive your monthly STAR and find that it includes weekday and weekend performance, what days are included in “weekday” in most parts of the world?

Sunday thru Thursday

Friday and Saturday

Sunday thru Saturday

Monday through Friday

34) In which of the following situations will occupancy increase?

Supply increases 10% and demand increases 5%

Supply decreases 10% and demand decreases 5%

Supply increases 5% and demand decreases 5%

Supply decreases 5% and demand decreases 10%

35) Which statement is true regarding RevPAR?

It is almost always higher than ADR

It can be thought of as a combination of Supply and Demand

When a hotel or GM is evaluated, the RevPAR metric is rarely considered

It can be thought of as a combination of Occupancy and ADRSlide156

Quiz Questions continued

Use the spreadsheet below to answer questions 36

A

B

C

D

E

F

G

1

2015

Supply

Demand

Revenue

Occupancy

ADR

RevPAR

2

Jan

4650

2883

374790

3

Feb

4200

2394

304038

4

Mar

4650

3255

462210

5

Mar YTD

36) The March YTD Occupancy (E5) is _______ .

62%

63.2%

65%

60.5%

Use the spreadsheet below to answer questions 37

A

B

C

D

E

F

G

1

2015

Occupancy This Year

ADR This Year

Occupancy Last Year

ADR Last Year

Occupancy % Change

ADR % Change

2

Jan

63.7

$120.40

62.4

$118.72

3

Feb

66.3

$133.74

65.3

$126.43

4

Mar

68.5

$142.65

67.7

$133.70

5

Apr

68.2

$138.00

68.9

$135.92

37) The Average Daily Rate percent change for April (G5) is ______.

2.1%

-2.1%

1.5%

1.4%Slide157

Application 1 – Monthly Data

Obtain a sample raw monthly data file (in Excel) with 48 months of property data (STR Number, Month Date, Supply, Demand, and Revenue).

Create three columns at the end (starting at Column F) for Occupancy, ADR, and

RevPAR

. Enter headings, your choice. Enter the formulas for each KPI and then copy the formulas down to each row.

Insert one column after each of the six metrics, starting between Column C and D. Enter headings: “Supply % Chg”, “Demand % Chg”, and so on. 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 the percent change numbers for the first year of data.Slide158

Application 1 - advanced

Optionally, you could use Excel to graph all twelve of the metrics in the file. Line graphs work the best for historic data.

Try graphing the Supply and Demand raw values on a single graph. You can graph actual Revenue values on a second graph or on the same graph with a secondary axis. What do you learn from analyzing the raw values?

Try graphing the Occupancy, ADR and

RevPAR

actual values. What changes do you see over time?

Try graphing the Percent Changes. You can combine the Percent Changes all on one line graph or have the raw value percent changes on one graph and the KPI percent changes on a second graph. Compare the percent change graphs to the actual value graphs and what do you see? What do the percent changes show?Slide159

Application 2 – Running 12 Month Data

Start over with the raw property data file. Add columns after Supply, Demand, and Revenue for the Running 12 Month versions of each of these numbers. Enter formulas to “SUM” up 12 months of monthly raw data. Your SUM formula will need to include the current month an the prior 11 months of data. You will not be able to derive a 12-month number for the first eleven months.

Add three columns at the end for Running 12 Month Occupancy, ADR, and

RevPAR

and enter the formulas based upon the raw 12-month data.

Then add columns (one after each metric) and enter formulas for all six Percent Changes for the Running 12 Month numbers.

Optionally, you could use Excel to graph all twelve of the Running 12 Month numbers and compare these graphs to the ones that you created in Application 1 that were based upon monthly data.Slide160

Application 3 – Daily Data

Obtain a sample raw daily data file (in Excel) with 2 years of property data (STR Number, Day Date, Year, Month Name, Day of Week Name, Supply, Demand, and Revenue). Make a copy of the file for Application 3.

Create three columns at the end for Occupancy, ADR, and

RevPAR

. Enter the formulas for each metric and copy to each row.

Insert columns after all six metrics and add formulas for percent changes based upon the comparable day last year. (Determine the correct comparable day last year.) You will only be able to derive these for the most recent year.

Optionally, you could use Excel to graph all twelve of the metrics in the file. Analyze the daily property performance over time. Take a look at specific time periods, such as the summer or Thanksgiving/Christmas. Compare holidays such as Valentines Day and July the 4

th

.Slide161

Application 4 – Daily Data by Day of Week

Start over with the daily data file. Sort the file by Year and then by Day of Week Name. Insert two rows between each different Day of Week per year.

Enter SUM formulas to aggregate the raw daily data (Supply, Demand, Revenue) for each different Day of Week per year. Then enter the Occupancy, ADR, and

RevPAR

formulas based upon the aggregated Day of Week data. Duplicate these formulas for each Day of Week and for each year.

Optionally, you could create a bar graph that compares the Occupancy for each Day of Week for the current year. Create a graph for ADR also.

You could add the Occupancies and ADRs for the prior year. Compare the year-over-year change for these metrics for each different day. Are ADRs growing faster on certain days versus others?Slide162

Part 2 - Competitive Set Data

KPIs for Comp Sets

Index Numbers and Index Percent Changes

Ranking Data

Special topics: Sufficiency, Weekly versus Monthly, Full Availability, Non-Reporting Hotels, Beyond

RevPARSlide163

Methodology - Key Performance Indicators for the Competitive Set –

how do you derive?

KPIs for the comp set are derived based upon the aggregated raw data for each separate hotel that is a member of the comp set.

So the first step when it comes to calculating KPIS is to combine the Supply, Demand, and Revenue values for each hotel in the comp set.

Then the standard Occupancy, ADR, and RevPAR formulas are applied to the aggregated Supply, Demand, and Revenue numbers.

Similar to MTD example (where we aggregated monthly data), but here you use

aggregated member data

.Slide164

KPIs for the Comp Set continued

This is the traditional methodology that is used to derive KPIs for the comp set.

The KPIs are never based upon a straight average of the Occupancies or ADRs of each member of the comp set.

The “Aggregated” methodology does place higher weight upon the performance of larger hotels in the comp set. Need to remember that when analyzing your comp set.

In most cases, the number of rooms for each member of the comp set will not vary too much, since they are supposed to be similar to the subject. Slide165

Comp Set Supply, Demand, & Revenue

Hotel Math Fundamentals Excel Review.xlsx - Comp Set Supply, Demand & Revenue

Aggregate raw values for each member of the comp set.

A

B

C

D

E

1

Property

Date

Supply

Demand

Revenue

2

11111

May 2015

3100

2222

187654

3

22222

May

20

15

3255

2468

198765

4

33333

May

20

15

2945

2345

223344

5

44444

May

20

15

2790

1987

165432

6

5555

May

20

15

3410

3210

298765

7

Comp Set

May

20

15

15500

12232

1073960

8

(Formula)

sum(C2:C6)

sum(D2:D6)

sum(E2:E6)Slide166

Comp Set Occupancy, ADR & RevPAR

Hotel Math Fundamentals Excel Review.xlsx - Comp Set

Occ

, ADR & RevPAR

Apply KPI formulas to aggregated comp set data.

A

B

C

D

E

F

G

H

1

Property

Date

Supply

Demand

Revenue

Occupancy

ADR

RevPAR

2

11111

May

20

15

3100

2222

187654

3

22222

May

20

15

3255

2468

198765

4

33333

May

20

15

2945

2345

223344

5

44444

May

20

15

2790

1987

165432

6

5555

May

20

15

3410

3210

298765

7

Comp Set

May

20

15

15500

12232

1073960

78.9

87.8

69.29

8

(Formula)

D7/C7*100

E7/D7

E7/C7Slide167

Term - Including or Excluding the Subject Hotel in the Competitive Set

STR allows companies to choose whether to include or exclude the data for the subject hotel in the numbers for the comp set. This decision is made at the company level, not the hotel level. All companies exclude when it comes to daily data.

Historically companies usually included the data for the subject hotel (market share program), but more recently most companies have decide to exclude the subject.

Some people feel that having the subject data included in the comp set numbers distorts or dilutes the comp set.

Including or excluding will be noted at the top of a STAR report.Slide168

Including or Excluding continued

Suppose you had five hotels in your comp set and the average Occupancy of the five hotels, without your hotel, calculated using the STR methodology was 70%.

Further suppose that your hotel had an Occupancy of 80%.

So obviously the comp set number with the subject (your) hotel

excluded

would be 70%.

If the comp set number

included

the subject hotel, then the comp set average would increase slightly, maybe to something like 72 or 73. You would have to do the math to determine the exact number.Slide169

Percent Change Numbers for the Competitive Set – same formula

Percent Change numbers for the comp set are calculated similarly to the ones for the subject property. Here is the formula:

(This Year – Last Year) / Last Year * 100

These numbers show increases or decreases in the performance of the comp set this year versus last year.Slide170

Comp Set Occupancy, ADR & RevPARPercent Changes

Hotel Math Fundamentals Excel Review.xlsx - Comp Set KPI Percent Changes

Calculate TY & LY KPIs, then apply % Change formulas.

A

B

C

D

E

F

G

H

I

J

K

1

This Year

Last Year

Percent Changes

2

Date

Occu-

pancy

ADR

RevPAR

Occu-

pancy

ADR

RevPAR

Occupancy

ADR

RevPAR

3

Comp Set

May

78.9

87.8

69.29

82.6

93.86

77.5

-4.5

-6.5

-10.6

4

(Formula)

(C7-F7)/F7*100

(D7-G7)/G7*100

(E7-H7)/H7*100Slide171

Comparing Data for the Subject Hotel versus the Comp Set

Typically people will compare the

actual values

for the Occupancy, ADR, and

RevPAR

of the Subject Hotel to the Comp Set.

They will be able to determine if the Subject Hotel has a higher or lower value for each KPI compared to the average of all the members of the Comp Set.

They can

also compare the Percent Changes

of the Subject to the Percent Changes of the Comp Set to see if their hotel is

improving more or less than the Comp Set

.Slide172

Hint - Comparing Data and Negative Percent Changes

When comparing the Percent Changes of the Subject Hotel to the Comp Set, there are instances where both numbers could be negative, especially in the case of an economic downturn.

So the Subject Hotel and the Comp Set are both doing worse than last year.

In that case the lower negative numbers actually has the best Percent Change. So even though you are doing worse than last year, you are still doing better than the Comp Set.Slide173

Index Numbers

The 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

.

Index numbers are percentages, multiple * 100 or format as %.Slide174

Occupancy, ADR, & RevPAR Indexes

Hotel Math Fundamentals Excel Review.xlsx -

Occ

, ADR, RevPAR Indexes

Calc KPIs for Subject & Comp, then apply Index formula.

A

B

C

D

E

F

G

H

I

J

Subject Property

Comp Set

Index Numbers

1

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

2

May

2015

96.4

104.6

100.8

78.9

87.8

69.29

122.2

119.1

145.4

3

(Formula)

B2/E2*100

C2/F2*100

D2/G2*100Slide175

Importance of Index Numbers

Occupancy, ADR, and

RevPAR

Index numbers tend to be relied upon heavily by the industry to evaluate the performance of hotels.

Index numbers are generated for multiple time periods, both monthly (YTD, Running 12) and daily (MTD, Running 28) to analyze performance for a subject hotel over various periods of time.

Some companies relate managers’ bonuses to index numbers. The headquarters of many hotel companies receive corporate or regional Index Reports listing each of their hotels with the various index numbers.Slide176

Terms - Other Names for Index Numbers

Some people, especially outside the US, use additional terms to identify Index numbers.

“MPI”, or Market Penetration Index is another way to refer to Occupancy Index. You may also see the term “

Penetration

” used.

“ARI”, or Average Rate Index is another way to refer to ADR Index.

“RGI”, or Revenue Generation Index is another way to refer to

RevPAR

Index. People will also use the term “

Yield

”.Slide177

Hint – RevPAR Index Numbers

Since

RevPAR

is a combination of Occupancy and ADR, there are similar mathematical hints when it comes to

RevPAR

Index numbers.

The

RevPAR

Index number less 100, will be the approximate sum of the Occupancy Index number less 100 and the ADR Index number less 100.

So if your hotel had an Occupancy Index of 110 and an ADR Index of 105, your

RevPAR

Index would be around 115.

And if your hotel had an Occupancy Index of 110 and an ADR Index of 95, your

RevPAR

Index would be around 105.Slide178

Deriving Index Percent Change Numbers

Here is the

methodology

for calculating Index Percent Changes. First you calculate the Index numbers this year for Occupancy, ADR, and RevPAR.

Next you calculate the Index numbers for last year using the same formulas.

Then you can calculate the Percent Change for the Index numbers using the standard Percent Change formula.

(Index TY – Index LY) / Index LY * 100

So the Index Percent Change number shows whether the relative performance of the subject hotel compared to the comp set is better this year compared to last year.Slide179

Deriving Index % Changes continued

Positive numbers are good and negative numbers are not good.

You could say Index Percent Changes answer the question, “did I beat the comp set better?”.

But they also answer the question, “did I lose better?”

If your Occupancy Index was 115 this year and 110 last year, you would have a positive Occupancy Index Percent Change. If your Occupancy Index was 105 this year and 95 last year, you would also have a positive Occupancy Index Percent Change. Even if your Occupancy Index was 90 this year and 80 last year, you would still have a positive Occupancy Index Percent Change.

Index of 90 TY and 80 LY yields an Index % Chg of 12.5%Slide180

Occupancy, ADR, & RevPAR IndexPercent Changes

Hotel Math Fundamentals Excel Review.xlsx - KPI Index Percent Changes

Calc indexes TY & LY, then apply % Change formulas. What did this hotel do?

A

B

C

D

E

F

G

H

I

J

1

Index Numbers

2

This Year

Last Year

Percent Change

3

Date

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

4

May 2015

122.1

119.10

145.40

99.8

124.60

124.40

22.3

-4.4

16.9

5

(Formula)

(B4-E4)/

E4*100

(C4-F4)/

F4*100

(D4-G4

)/

G4*100

Slide181

Case Scenario - Index Percent Changes

The Index Percent Change numbers are very important because they show year-over-year “improvement”.

Here is a hypothetical situation – You are a General Manager and your hotel has Occupancy, ADR, and

RevPAR

indexes that are all below 100. You get a call from your Regional Manager who says, “great job”. Why?

The Regional Manager may be looking at index percent change numbers that are all strongly positive. So your hotel is underperforming the comp set, but your hotel is catching up (improving more than the comp set average). That is the reason for the positive feedback.Slide182

Hint - Index % Changes continued

The opposite scenario could also be true. Your hotel could have indexes all well above 100. But the Regional Manager could call with concern.

If the Index Percent Change numbers are all negative, it means that the comp set members on average are improving more than your hotel and could catch up.

The RevPAR Index Percent Change number is a very popular number and is often looked at when it comes to things like bonuses.Slide183

Ranking Data – What is it?

Ranking numbers are another valuable performance metric.

Suppose the Occupancy of my hotel is 80% and my comp set Occupancy is 70%. The 70% represents the average of all of the hotels in my comp set.

Suppose there are six hotels in my comp set. Those properties could have a wide or narrow range of different Occupancy values.

The Ranking information shows me the position of my hotel (the 80%) in the range of values for the comp set.

Ranking data goes beyond the KPIs & IndexesSlide184

Ranking Data continued

Ranking data is displayed in the format: “X of Y”, where X is the subject hotel’s position and Y is the number of participating properties in the comp set

which includes the subject hotel.

For example “2 of 6” would mean the subject hotel had the 2

nd

best value in the comp set of 6 members.

In the prior example “1 of 6” would indicate a narrow range of values, where “3 of 6” would indicate a broad range.

STAR Property Reports include Ranking information for Occupancy, ADR, RevPAR and each Percent Change.Slide185

Percent Change Ranking Data

The Percent Change Ranking data is also very valuable.

Suppose your hotel had an Occupancy Percent Change of 10% and your comp set had an Occupancy Percent Change of 5%. The 5% represents the average of all of the Percent Changes of the hotels in your comp set.

The format for the Percent Change Ranking is the same as Ranking for the KPIs. So “2 of 6” would mean the subject hotel had the 2

nd

best percent change in the comp set of 6.

This makes it clear that one other hotel in your comp set had a higher Occupancy Percent Change than your hotel.Slide186

Percent Change Ranking continued

The Percent Change Ranking data provides additional information regarding relative year-over-year improvement of the hotels in your comp set.

Remember, the percent changes could all be negative. Your hotel and all of the hotels in your comp set could have had a lower Occupancy value this year compared to last year.

In that case, a “1 of 6” Ranking number would indicate that you had the best Percent Change. Even though all the Percent Change numbers were negative, your hotel had the “best” (closest to positive or lowest) negative number.Slide187

Term - Sufficiency of Comp Set Data

The term sufficiency relates to whether or not enough of the hotels in the competitive set have participated (submitted data) for a single time period.

When it comes to comp set data for a single month or day, there must be at least 3 or more hotels in the comp set that submit data for that specific month or day in order for that comp set data to be “sufficient”.

Sufficiency does not take into consideration the number of hotels that are actually in the comp set. You could have 10 hotels in the comp set, but if only 3 submit data for a month, the data for that month would be “sufficient”.Slide188

Sufficiency of Comp Set Data continued

If data for a single month or day is “sufficient”, then the related KPIs for that month or day (Occupancy, ADR, RevPAR) can then appear on the STAR report.

Percent change numbers for a single time period (month) will appear if both months are sufficient, this year and last year. In other words, more than three hotels submitted data for the month this year and for the same month last year.

Multiple time period numbers (YTD, MTD) are considered to be sufficient if greater than 50% of the months or days included in the multiple time period are sufficient. So an April YTD number would be sufficient if three of the four months are sufficient.Slide189

Hint - Comparing Weekly and Monthly Reports

Weekly STAR Reports include a Month-to-Date number that is solely based upon daily data.

On the last week of the month, the Weekly STAR Report will include a MTD number based upon the daily data for all the days in the month.

Hotels watch this number since it can be a preliminary indication of the monthly performance.

It is only a preliminary indication, and you should wait until the Monthly STAR Report to see the final numbers. (“Don’t take the Weekly MTD numbers to the bank.”)Slide190

Comparing Weekly and Monthly continued

When the Monthly STAR Report arrives, the monthly number can be different than the last MTD number on the Weekly STAR Report.

There can be three explanations:

There may be a hotel in the comp set that submits monthly data but not Daily data. Check the Response pages.

A hotel may submit monthly data that is different than the sum of all of the daily data that they submitted. For example, some hotels can only make adjustments to monthly data.

Some hotels submit adjusted daily data at the end of the month after the last Weekly Report (with the MTD number) is generated but before the Monthly Report comes out.Slide191

Term - Full Availability and Comp Sets

Occasionally a hotel in the comp set may report a Supply number that is different than the number of rooms in the property times the days in the period. There is a very small range of acceptability.

In those cases, STR uses the Supply number based upon full availability, not the number that the hotel reports.

This eliminates the concerns that a Subject hotel may have that a property in their comp set is providing inaccurate Supply numbers.Slide192

Hint - Non-Reporting Hotels in the Comp Set

There may be situations where one or more hotels in a comp set does not report data for a month or more. (This assumes that the comp set is still sufficient, so there are still three or more hotels reporting.) STR uses the following methodology in the case of a non-reporting hotel.

First, the Supply, Demand, and Revenue for the participating properties is aggregated. You could call this the “Sample” Supply, Demand, and Revenue; since this is the data of the participating hotels.

Next, an Occupancy and ADR is calculated based on the Sample data. This is the “Sample” Occupancy and ADR.Slide193

Non-Reporting Hotels - continued

Then the Supply is determined for all the hotels in the comp set, simply the total number of rooms times the days in the month. This is referred to as the “Census” Supply, since it is the Rooms Available for all hotels, not just the participants.

This Census Supply number is multiplied times the Sample Occupancy to derive the Census Demand.

And the Census Demand is multiplied times the Sample ADR to derive the Census Revenue.

Obviously, if you calculated the Census Occupancy, ADR, and RevPAR it would be the same as the Sample values.Slide194

Non-Reporting Hotels - continued

So the methodology used to derive comp set KPIs assumes that a non-reporting hotel in a comp set has the same Occupancy and ADR as the reporting hotels.

This assumes that the hotels in the comp set perform somewhat similarly.

Obviously the comp set performance will be affected by a non-reporting hotel.

However, no data is ever “made up” for non-reporting hotels that could distort the comp set performance.Slide195

Non-Reporting Hotel Example

Calculate Occupancy & ADR based on Sample, multiply * Total Supply

A

B

C

D

E

F

G

H

1

Property

Date

# Rms

Supply (Actual)

Demand

Revenue

Occupancy

ADR

2

11111

May 2015

100

3100

2222

187654

3

22222

May 2015

105

3255

2468

198765

4

33333

May

2015

95

2945

2345

223344

5

44444

May

2015

90

6

5555

May

2015

110

3410

3210

298765

7

Comp Set Sample #s

410

12710

10245

908528

80.6

88.7

8

Comp Set Census #s

500

15500

12494

1107961

9

(Formula)

C8 * 31

D8 * G7 /

E8 * H7

100Slide196

Quiz Questions

38) Which one of the following statements is accurate regarding “Sufficiency” as it related to competitive set data?

If a competitive set is not sufficient for three consecutive months, you will no longer receive a STAR Report

If a competitive set number for just a single month is not sufficient, it will still be displayed on the STAR Report

Percent Change number for a single month will appear on the STAR report if either the

“This Year” or “Last Year” data is sufficient

The sufficiency rules are in place to protect the confidentiality of the data

39) Key Performance Indicators (KPI) for the Competitive Set (for example the average Occupancy) are:

Always based upon the aggregated raw data of each member of the competitive set

Always based upon a straight average of the metrics, for example the Occupancies, of each member of the competitive set

The comp set methodology differs inside and outside of North America

The comp set methodology can differs by hotel companySlide197

Quiz Questions continued

40) When you receive your STAR report, your ADR for the month was $100 and the competitive set ADR was $90. What can you tell?

You had the highest ADR of all of the members of the competitive set

Your ADR was $10 higher than the average of all of the members of the competitive set

There was one hotel that had a higher ADR than you

Your RevPAR will be higher than the RevPAR of the competitive set

41) What happens when there is a non-reporting hotel in a competitive set?

Modeled data is used for the non-reporting hotel

Market data is used for the non-reporting hotel

Prior year data for the non-reporting hotel is used

The comp set average is calculated based upon the reporting hotelsSlide198

Quiz Questions continued

Use the spreadsheet below to answer the following two questions regarding the

methodology used to calculate KPIs for a competitive set.

A

B

C

D

E

F

G

1

Property

Date

Supply

Demand

Revenue

Occupancy

ADR

RevPAR

2

1111

July

15

4650

3348

525636

3

2222

July

15

5642

3837

633105

4

3333

July

15

5425

3961

728824

5

4444

July

15

6045

4655

721525

6

Comp Set Total for July

2015

42) The competitive set Occupancy (E6) for July is _____.

60.9%

72.6%

61.9%

74.3%

43) The competitive set RevPAR (G6) for July is _____.

$119.89

$143.42

$165.12

$155.16Slide199

Quiz Questions continued

44) When you receive your STAR report your ADR index was 110 and your Occupancy index was 90. What do you know?

The RevPAR index will be in the neighborhood of 115

The RevPAR index will be in the neighborhood of 100

The RevPAR index will be in the neighborhood of 105

The RevPAR index will be in the neighborhood of 120

45) When you receive your STAR report, you see that your RevPAR index was 90 this year compared to 80 last year. What do you know for sure?

Your hotel outperformed the competitive set when it comes to RevPAR both years

Your hotel outperformed the comp set this year when it comes to RevPAR, but not last year

Your hotel will have a positive RevPAR Index Percent Change

Your hotel would have a positive RevPAR Percent ChangeSlide200

Quiz Questions continued

46) When you receive your STAR report you see that your ADR Rank for the current month is “3 of 7”. What do you know?

The ADR for your hotel is higher than the competitive set ADR

Your hotel has the 3

rd

highest ADR among the members of your competitive set

Your hotel had an ADR higher than three other members of your competitive set

The ADR for your hotel was higher than the competitive set ADR for 3 of the last 7 monthsSlide201

Quiz Questions continued

Use the spreadsheet below to answer the following two questions regarding the methodology used to calculate Index.

A

B

C

D

E

F

G

H

I

J

1

Subject Property

Competitive Set

Index Numbers

2

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

3

Nov-15

98.2

105.80

103.90

82.4

107.42

88.51

47) The occupancy Index for November (H3) is _____.

83.9

90.3

104.6

119.2

48) The RevPAR Index for November (J3) is ______.

85.2

96.2

117.4

122.7Slide202

Quiz Questions continued

Use the spreadsheet below to answer the following two questions regarding the methodology used to calculate Index percent change

A

B

C

D

E

F

G

H

I

J

1

Index Numbers

2

This Year

Last Year

Percent Change

3

Date

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

4

Nov-15

115.4

104.3

119.9

100.5

102.6

103.4

49) The ADR Index percent change for November (I4) is _____.

3.4%

1.7%

-1.6%

-3.4%

50) The RevPAR Index percent change for November (J4) is ______.

-16%

14.3%

16%

-13.8Slide203

Application 5 – Subject and Comp Set Data

Obtain a sample raw data file (in Excel) with 48 months of property and comp set data (STR Number, Month Date, Subject Supply, Subject Demand, Subject Revenue, Comp Set Supply, Comp Set Demand, and Comp Set Revenue). Make a copy of the file.

Insert 3 columns between columns E and F for Subject Occupancy (

Subj

Occ

), Subject ADR (

Subj

ADR) and Subject

RevPAR

(

Subj

Rpr

). Enter the headings above. Enter the KPI formulas and copy to all rows.

Use columns L, M, and N for Comp Set Occupancy (Comp

Occ

), Comp Set ADR (Comp ADR) and Comp Set

RevPAR

(Comp

Rpr

). Enter the headings above. Enter the KPI formulas and copy to all rows.

Insert a column after Subject Occupancy (between columns F and G) for Subject Occupancy Percent Change (

Subj

Occ

%Chg). Insert a column after Subject ADR for Subject ADR Percent Change (

Subj

ADR %Chg) and insert a column after Subject

RevPAR

for Subject

RevPAR

Percent Change (

Subj

Rpr

%Chg). Slide204

Application 5 continued

Enter the Percent Change formulas and copy to all rows. 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.

Insert columns after the Comp Set Occupancy, ADR, and

RevPAR

columns for those Percent Change numbers. Enter the formulas and copy to all rows.

Add columns at the end (U, V, and W) for Occupancy Index (

Occ

Indx

), ADR Index (ADR

Indx

), and

RevPAR

Index (

Rpr

Indx

). Enter the Index formulas and copy to all rows.

Insert a column after Occupancy Index (between columns U and V) for Occupancy Index Percent Change (

Occ

Indx

%Chg). Insert a column after ADR Index for ADR Index Percent Change (ADR

Indx

%Chg) and insert a column after RevPAR Index for RevPAR Index Percent Change (

Rpr

Indx

%Chg). Slide205

Application 5 continued

9. Enter the Index Percent Change formulas and copy to all rows. Use the same procedure as for the values. You will not be able to derive these metrics for the first year of data.

10. Optionally, you could use

Excel to create graphs of the various metrics. Create a line graph of the three Index numbers (

Occ

, ADR, and

RevPAR

). Create a second line graph of the Index Percent Change numbers. What does this tell you about “your hotel” compared to the comp set?

11. Create a line graph for Occupancy (the actual value), one line for the Subject and another for the Comp Set. Create similar graphs for ADR and

RevPAR

. What does this tell you about the various KPIs?

12. Create similar graphs for the KPI Percent Changes of the Subject versus the Comp Set. You might be able to combine these on a single graph or you may find that is too busy. What does this tell you about the relative improvement of your hotel versus the comp set? You might find it interesting to graph the Percent Changes or the actual values for Supply, Demand, and Revenue.Slide206

Application 5 finishedSlide207

Application 6 – Members of a Comp Set

Obtain a sample raw data file (in Excel) with 3 months of property data for all the members of a comp set (Subject STR Number, Competitor STR Number, Month Date, Number of Rooms, Supply, Demand, Revenue).

Sort the file by month and then Competitor STR Number. Insert three rows between the data for each month. Create three columns at the end of the file for Occupancy, ADR, and

RevPAR

.

Start by calculating the KPIs for the first month of data. In order to do this, start by entering SUM formulas to aggregate the Supply, Demand, and Revenue for each member of the comp set for the specific month. Enter the formulas for Occupancy, ADR, and

RevPAR

directly to the right of the SUM formulas in the corresponding columns. The formulas are based upon the aggregated raw data.

Repeat this process for the second month of data. SUM up the raw values and then enter the KPI formulas based upon the aggregated data.Slide208

Application 6 continued

Next calculate the KPIs for the third month of data. But notice that for this month one of the comp set members did not submit data.

Repeat the previous steps for the third month of data. SUM up the raw values and then enter the KPI formulas based upon the aggregated data. Enter a label for this this row in column A, “Sample Data”.

Label the row below the Sample Data row, “Census Data”. In the Census Data row, enter a SUM formula to add up the Number of Rooms for all of the members of the comp set, including the one that did not participate.

In the Supply column of the Census Data row, enter a formula that multiplies the total Number of Rooms (for all members) times the days in the specific month (31 for March). Think of this number as the “Census Supply”.Slide209

Application 6 continued

In the Demand column of the Census Data row, enter a formula that multiplies the Census Supply times the Sample Occupancy that you calculated in the row above. Think of this as “Census Demand”.

In the Revenue column of the Census Data row, enter a formula that multiplies the Census Demand times the Sample ADR that you calculated in the row above. Think of this number as the “Census Revenue”

To double check, enter the Occupancy, ADR, and

RevPAR

formulas based upon the Census Supply, Demand, and Revenue. These numbers should obviously be the same as the Sample numbers on the row above.Slide210

Part 3 - Industry Data

Industry Segments

Modeling of U.S. Industry Data

Special topics: KPIs, Percent Changes, Multiple Time Periods, Full Availability, and Consistent Sample, Sufficiency, Collapsing of Scale and Class data

Supply Numbers Over TimeSlide211

Industry Segment Data - Basics

STR uses a variety of industry segments to help analyze hotel performance.

There are geographic (market, tract or sub-market) and non-geographic (scale, class, location) categorizations. Examples of industry segments include:

Market

Market Class

Submarket or Tract

Submarket/Tract Class

Submarket/Tract Scale

Data for industry segments will appear in STAR Reports, Trend Reports, Destination Reports and in publications.Slide212

Value of Industry Data

STAR Reports compare a subject hotel to one or more nearby industry segments in addition to the comp set.

This industry comparison provides a valuable perspective.

The subject hotel could be comfortably beating the comp set, but losing to nearby industry segments.

The obvious question is who are the hotels in these industry segments and why are they beating my hotel and my competitors?

It may be time to re-evaluate the comp set.Slide213

Industry Data - Methodology Introduction

The industry segments are merely groups of hotels.

I

nstead of a comp set, which may be a group of five or ten hotels, industry segments may consist of groups of ten or many more hotels.

There are methodologies for deriving the various metrics of an industry segment, just like there are for deriving the metrics of a comp set, especially when all the hotels do not report.

The methodologies are different when it comes to U.S. industry segments as opposed to non-US industry segments.Slide214

The Methodology for U.S. Industry Data

The methodology used for arriving at U.S. industry numbers is different than the one for arriving at comp set numbers.

In the US, actual data is used for hotels that participate and “modeled data” is used for hotels that do not participate.

Including this “modeled data” increases the accuracy of the total U.S. industry numbers.

The numbers are not just based upon the participants but the non-participants (which tend to be more low-end independents) are also included.

This is one of the reasons why STR includes non-participants in their Census database of hotels.Slide215

Key Performance Indicators for U.S. Industry Segments – Actual & Modeled

So in order to derive the KPIs for an industry segment, the first step is to determine the group of hotels that are included in that industry segment.

Then the raw data (Supply, Demand, and Revenue) is aggregated for this group of hotels.

The

Actual

data for participating hotels is aggregated and combined with the

Modeled

data for the non-participating hotels.Slide216

KPIs for U.S. Industry Segments continued

So the aggregated Supply, Demand, and Revenue for all the hotels in the industry segment is the combination of Actual data for participants as well as Modeled data for non-participants.

The Key Performance Indicators (Occupancy, ADR, and

RevPAR

) are then derived based upon the aggregated Supply, Demand, and Revenue numbers.

The same KPI formulas are used as when deriving property or comp set KPIs.Slide217

Industry Supply, Demand & Revenue

Hotel Math

Fundamentals

Excel.xlsx - Industry Supply, Demand & Revenue

Accumulate Actual & Modeled Supply, Demand, & Revenue.

A

B

C

D

E

F

G

1

Property

Date

# Rms

Type of Data

Supply

Demand

Revenue

2

11110

May 2015

100

Actual

3100

2222

187654

3

22220

May 2015

105

Actual

3255

2468

198765

4

33330

May

2015

95

Modeled

2945

2345

223344

5

44440

May

2015

90

Actual

2790

2456

234567

6

5550

May

2015

110

Modeled

3410

3210

298765

7

6660

May

2015

85

Actual

2635

2511

201234

8

7770

May

2015

115

Actual

3565

3012

312345

9

Tract Scale

700

21700

18224

1656674

10

(Formula)

sum

sum

sum

(E2:E8)

(F2:F8)

(G2:G8)Slide218

Industry Occupancy, ADR & RevPAR

Hotel Math Fundamentals Excel.xlsx - 'Industry Occupancy, ADR & RevPAR'!A1

Apply KPI formulas to the accumulated raw data.

A

B

C

D

E

F

G

H

I

J

1

Property

Date

# Rms

Type of Data

Supply

Demand

Revenue

Occupancy

ADR

Rev-PAR

2

11110

May 2015

100

Actual

3100

2222

187654

3

22220

May

201

5

105

Actual

3255

2468

198765

4

33330

May

20

15

95

Modeled

2945

2345

223344

5

44440

May

201

5

90

Actual

2790

2456

234567

6

5550

May

2015

110

Modeled

3410

3210

298765

7

6660

May

20

15

85

Actual

2635

2511

201234

8

7770

May

20

15

115

Actual

3565

3012

312345

9

Tract

Class

700

21700

18224

1656674

84

90.91

76.34

10

(Formula)

F9/E9*100

G9/F9

G9/E9Slide219

Key Performance Indicators for non-US Industry Segments

STR uses a different methodology for non-US industry numbers. Non-US industry data is not modeled.

The methodology used non-US industry numbers is identical to the methodology used to derive comp set numbers.

Just like comp set metrics, non-US industry data is solely based on reporting hotels.

Whenever looking at industry segment data anywhere in the world, it is always good to check participants to see how representative the data is

.Slide220

Non-US Industry KPIs - continued

When working with industry data, a Response Page always shows which hotels participated.

You can obtain industry data on a small developing country.

Someone may ask, “Is that data representative of all the hotels in that country?”

The data such as occupancies and ADRs is

representative

of the hotels that participated.

You could make the case that Percent change data may be more representative of a larger group. Slide221

Industry Segments – Formulas and Methodologies

Formulas and methodologies for industry segments are the same as for comp sets, including:

Percent Changes – (TY-LY)/LY*100

Multiple Time Period – based on aggregated data

Full Availability – Number of rooms * days in time period

Slide222

Hint - Supply Numbers Over Time

The number of Rooms Available for an industry segment such as a market or a tract/submarket (or any group of hotels, including a comp set), can vary over time due to:

New hotels opening - Hotels closing

Room additions - Room drops

New Supply = Original Supply + (Opens + Adds) – (Closes + Drops

)

So Supply (the number of Rooms Available) can increase over time if there are New Opens or if existing hotels have Room Adds.Slide223

Hint - Supply Numbers Over Time for Scales

The Supply (number of Rooms Available) for certain industry segments where Scale, Class, or Chain come into play can vary over time due to one more situation:

Conversions in - Conversions out

New Supply = Original Supply + (Opens + Adds + Conversion Ins) –

(Closes + Drops + Conversion Outs)

Suppose there is a market where there are no supply changes (Opens, Closes, Adds, Drops). However, in that market, one hotel converts from an Upper Upscale chain to a Luxury Scale chain. Slide224

Supply Numbers & Scales continued

The Supply numbers of the total market will show no change since there were no Opens, Closes, Adds, or Drops of rooms.

But the Supply numbers for Luxury Scale hotels and Upper Upscale hotels in that market will show a change.

There will be a decrease in the Supply for the Upper Upscale industry segment (due to the Conversion Out) and an increase in the Supply for the Luxury Scale segment (due to the Conversion In).

The number of rooms for the Conversion Out will normally equal the number of rooms for the Conversion In, unless there was a simultaneous Room Add or Drop. Slide225

Term - Sufficiency of Industry Data

If an Industry segment has 4 or more hotels that submit actual data, then that segment is defined as “Sufficient”.

This is similar to the comp set rule (3 required), but one has to assume that a subject hotel might receive the industry data and therefore could back their own data out.

The numbers for that industry segment can then appear on STAR reports and elsewhere. Industry data will not appear when the segment is insufficient.

Multi-month numbers are considered to be sufficient if greater than 50% of the months or day included in the multi-month period are sufficient.Slide226

Methodology - Collapsing of Scale/Class Data

There are times where Scale or Class data for a Market or Submarket/Tract is “collapsed”.

If the Luxury data is not sufficient, then instead of a hotel not receiving any industry data, they might receive Collapsed data.

Class data is combined using the following 3 groups:

Luxury and Upper Upscale

Upscale and Upper Midscale

Midscale and Economy

Scale data is collapsed using the following 4 groups:

Luxury, Upper Upscale, and Upscale

Upper Midscale and Midscale

Economy

IndependentsSlide227

Term - “Consistent Sample” related to Industry Segment data

If an industry segment has a non-reporting property (or a property that reports intermittently), that can possibly distort the performance numbers. Or a hotel that participates this year and not last year, or visa versa. Or hotels that open or close during the date range you are looking at.

You never know if a change in performance is related to what is actually happening among the hotels in the industry segment or the fact that a single property’s data is missing.

(You can run a Trend report on a specific group of reporting hotels to analyze performance on a consistent sample.)Slide228

Quiz Questions

51) When talking about U.S. Industry Data, which is an accurate explanation of “modeled data”?

U.S Industry Data is based only on the actual data from reporting hotels

Modeled Data does not help compensate for the non-participating low-end independent hotels in the U.S.

Modeled Data does not help increase the accuracy of U.S. Industry data

Modeled Data is derived by using actual data from reporting hotels to estimate performance for non-reporting hotels

52) The number of Rooms Available in a total market can change over time due to what four factors?

New hotel openings, Hotel closings, Brand conversions, and Renovations

New hotel openings, Brand Conversions, Hotel room additions, and Hotel room drops

Hotel closings, Brand conversions Hotel Room additions, and Hotel Room drops

New hotel openings, Hotel closings, Hotel room additions, and Hotel room dropsSlide229

Quiz Questions continued

53) What is the period of time a hotel must close completely due to renovation in order to be considered a Close and Reopen?

Two weeks or longer

One months or longer

Six months or longer

Twelve months or longer

54) What is the minimum number of reporting hotels for an industry segment to be considered “sufficient”?

Two

Three

Four

FiveSlide230

Application 8 – Data for a single industry segment

Obtain a sample raw Monthly data file (in Excel) with 48 months of industry data (Industry Segment ID, Segment Name, Month Date, Supply, Demand, Revenue, Census Properties, Census Rooms, Sample Properties and Sample Rooms).

Insert columns after the Supply, Demand, and Revenue for Occupancy, ADR, and

RevPAR

. Enter the KPI formulas and copy to all rows.

Insert columns after the raw data fields and the KPIs for six different Percent Changes. Enter the Percent Change formulas and copy to all rows.

Add a column at the very end of the file for Percent Participation. Enter a formula in this column that determines the percentage of Sample versus Census based upon number of rooms.

Optionally, you could graph (line graph) various metrics and analyze the performance of the industry segment over time. You could also add columns and compute Running 12 Month metrics.Slide231

Application 9 – Daily Industry Data

Obtain a sample raw Daily data file (in Excel) with three years of daily industry data (Industry Segment ID, Segment Name, Day Date, Year, Month Name, Day of Week Name, Supply, Demand, Revenue, Census Properties, Census Rooms, Sample Properties and Sample Rooms).

Repeat the steps in Application 1 to add columns for Occupancy, ADR,

RevPAR

, Percent Changes, and Percent Participation.

Optionally, you could graph (line graph) various metrics and analyze the performance of the industry segment over time. Look for special events or holidays that impacted daily performance.

Optionally, you could also subtotal the daily industry data by Year and Day of Week to analyze daily performance changes on a day of week basis.Slide232

Application 10 – Multiple Industry Segments

Obtain a sample Ad-Hoc Industry data file with monthly data for multiple industry segments (Industry Segment ID, Segment Name, Month Date, This Year Supply, This Year Demand, This Year Revenue, Last Year Supply, Last Year Demand, Last Year Revenue, Census Properties, Census Rooms, Sample Properties and Sample Rooms). The multiple segments could consist of all the Tracts, Scales, and/or Locations within a Market. The file could contain monthly, Year-to-Date, or Annual data. There will be just one line of data (just one time period) for each industry segment.

Repeat the steps in Application 1 to add columns for Occupancy, ADR,

RevPAR

, Percent Changes, and Percent Participation.

Optionally, you could graph (bar graph) the metrics for the different industry segment and compare their performance. You could create different graphs for Occupancy and ADR, as well as Tract and Scale. Which segments are winning or losing within the market?Slide233

Part 4 - International Issues

US versus WW Industry Segments, Modeling

Local Currencies – submission and STAR Reports

Exchange Rates – methodology including multiple time periods

Constant Currency - optionalSlide234

The Submission of Revenue Data and Local Currency

STR requests that hotel companies and hotels submit their Revenue data in Local Currency

A Currency code is requested to identify the Local Currency. (The standard three-character ISO code is typical.)

The Revenue data is stored in the Local Currency.

This helps to ensure the highest degree of accuracy.Slide235

Methodology – Currencies and Exchange Rates

Outside the US, most hotels want to see their STAR reports in their Local Currency. Sometimes corporate headquarters want to receive data in a different currency.

STR obtains daily and monthly exchange rates for all currencies in the world (at least the countries that have hotels) from Oanda (

www.oanda.com

).

Daily data is converted using the daily exchange rate.

Monthly data is converted using the daily exchange rate for the last day of the month.Slide236

Exchange Rates and Multiple time periods

It is important to understand how exchange rates are handled when it comes to multiple time periods for monthly data, i.e.: YTD and Running 3 or 12 month numbers.

Raw data is aggregated using the exchange rate for each individual month and then the KPIs are derived. This methodology accounts for changing exchange rates.

Multiple time periods for daily data, i.e.: weekly or Running 28-day numbers are calculated the same way, using the exchange rate for each individual day.Slide237

Currencies and Corporate Data

When companies obtain data from STR, they may request the numbers in multiple currencies, i.e. U.S. Dollars, Euros, and Local.

Analyzing the performance of hotels in a company spread over multiple countries can sometimes be distorted by fluctuating exchange rates. (Example – Suppose I’m basing bonuses on how GMs increased ADRs.)

STR produces some data and reports for companies in a “

constant currency

”. This methodology applies a single exchange rate i.e.: the rate from January of the current year to the numbers for every month.Slide238

Quiz Questions

55) Hotels and hotel companies outside the U.S. may receive STAR reports in what currency?

Local currency only

Euro only

U.S. dollars only

Local Currency, US dollars or a third currency (the company gets to decide)

56) Modeled data is used in which country?

United Kingdom

United States

China

All countries

57) How are exchange rates handled when it comes to multiple time periods, e.g. YTD, Running 3 month or Running 12 month?

The exchange rate on the first day of the year is used for all months

The exchange rate for each individual month, specifically the last day of that month, is used

The exchange rate for each day is used

The exchange rate for the last month is usedSlide239

Possible Applications

It would be possible to conduct several different application exercises related to international issues.

You can obtain a sample raw data file with two Revenue numbers, one in USD and the second in a Local Currency.

It would be possible to see sample exchange rate data, either monthly or daily.

It would also be possible to conduct an exercise showing the relevance of a “constant currency” methodology.

Contact the STR SHARE Center for more information or assistance.Slide240

The SHARE Center

Supporting Hotel-related Academic Research and Education

Property Level Benchmarking with the STAR Reports – Review VersionSlide241

Table of Contents

STAR Report Foundations – brief review of Hotel

Industry Foundations and Hotel Math Fundamentals

Introduction to the STAR Report

Monthly STAR Reports

Weekly

STAR

Reports

Additional Property Reports – optional supplement

Daily STAR Reports

Online Reporting Tool

Raw Property and Comp Set Data FilesSlide242

Note regarding Application Exercises

There are Application Exercises that are suggested at the end of each section. These are very valuable since they offer hands-on experience working with live reports and hotel data.

There are sample Monthly and Weekly STAR Reports for a variety of different hotels (different scales and markets) that relate to these exercises. The reports contain life-like data, but are not live reports for actual hotels.

The reports come with the training program. Contact the SHARE Center if you have any questions.Slide243

Part 1 - STAR Report Foundations - optional

This chapter is a quick review of the content presented in the Hotel Industry Foundations and the Hotel Math Fundamentals training. This review may or may not be necessary depending upon the presentation format being used by the instructor.

There are

Segmentation and Additional Revenue

definitions.Slide244

Group

= rooms sold in block of ten or more and corresponding revenueTransient

= rooms sold at rack, corporate, package, or government rates and corresponding revenue

Contract

= rooms sold at rates stipulated by contracts including airline crews and permanent guests

Food & Beverage Revenue

= revenue from any F&B establishment

Other Revenue

= all revenue excluding room & F&B

Terms -

Segmentation

and Additional

Revenue

DefinitionsSlide245

Hotel companies or hotels can submit Segmentation and Additional Revenue data on a monthly or weekly basis. Some hotel submit this data online.

Hotels can receive additional pages in their Monthly or Weekly STAR Reports which to analyze their performance

This is very popular for US hotels especially in the Luxury and Upper Upscale groups.

Outside the US, there are over 300 markets where Segmentation reports are available.

Segmentation and

Additional Revenue

Pages in the STAR ReportSlide246

Introduction to the

STAR ReportSlide247

What

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 are continually being fine tuned and new pages are added on a regular basis.

The STAR Reports analyze your

hotel’s performance

:

Occupancy

Average Daily Rate (ADR)

Revenue per Available Room (

RevPAR

)

Supply (Room Nights Available)

Demand (Room Nights Sold)

Room RevenueSlide248

What

do I not see on the STAR Report?

The STAR Reports never show individual property data for any other hotel except for your hotel (the subject).

When Competitive Set data is displayed, it is always the average of all the hotels in the comp set based upon aggregated data. See the “Hotel Math Fundamentals” training to review the exact methodologies used.

Likewise, when industry data is displayed, it is always the average of all the hotels in the industry segment based upon aggregated data. Again, see the “Hotel Math Fundamentals” training to review the exact methodologies used.Slide249

STAR Reports –

who receive them?

STAR Reports are generated for each hotel that submits data to STR, nearly

6

0,000.

Each company or hotel specifies the staff persons that have access to the STAR Report.

In most cases, STR emails the STAR Reports to each of these staff persons.

In the case of hotels affiliated with a chain or company, the STAR Reports may also be sent to corporate headquarters.

No one else has access to a STAR Report for a hotel.Slide250

STAR Reports –

how are they generated?

STAR Reports are usually generated in the form of Excel workbooks with multiple tabs/pages.

They include data tables, graphs, and explanations to make the information easy to understand and use.

They do not include embedded formulas.

For some companies, the STAR Reports are generated as PDF documents.Slide251

STAR Reports –

when are they generated?

STAR reports are generated on a monthly, weekly, and daily (mainly for non-North American hotels) basis.

Here are the approximate times of delivery, although they can be affected by holidays:

Monthly: on or around the 18

th

Weekly: Tuesday night (or early Wednesday morning)

Daily: each day after noon

Some companies obtain the STAR Reports from STR and post them on their internal web site.Slide252

Who am I compared to (in North America

and many areas outside of North America)?

STAR Reports of hotels in North America as well as hotels in many markets outside of North America compare the subject hotel to five groups of hotels, specifically the:

Competitive Set

: a set of 4 or more properties.

Market

: a large geographic segment, for example Memphis or Nashville.

Market Class

: the market above broken down by class, so similar chain affiliated and independent hotels:

Luxury Class

Upper Upscale Class

Upscale Class

Upper Midscale Class

Midscale Class

Economy ClassSlide253

Who am I compared to (in North America

and select Non-NA markets)? continued

Additional industry segments:

Tract/Submarket

: the geographic subset of the market above, such as Memphis Airport or Nashville South.

Tract/Submarket Scale or Class

: the tract above broken down by Scale for North America hotels or by Class for hotels outside North America.

The Scales of Classes are collapsed using the methodology introduced in the Industry Data section. Classes collapse to 3 groups and Scales collapse to 4 groups.Slide254

Who

am I compared to (outside of North America and select Non-NA markets)?

STAR Reports for hotels outside of North America and select Non-North American markets compare the subject hotel to two groups of hotels, specifically the:

Competitive Set

: a set of 4 or more properties.

A single industry segment

: the report will use the best industry segment that has sufficient participation using the following order:

Submarket/Tract Collapsed Class – combined into the 3 groups

Submarket/Tract

Market Class

Market Collapsed Class -

Lux

& Upper Up, Up & Upper Mid, Mid & Econ

Market

And if necessary: Country Class, Country Collapsed Class, or CountrySlide255

How do I use the STAR Report? – hints

Start by looking at

RevPAR

and then drill down and check Occupancy and ADR.

Indexes make it easy to see whether you won or lost. Ranking shows your position.

Start with YTD, and Running numbers to see monthly data in perspective.

Start with Weekday/Weekend numbers and drill down into specific Days of the Week looking for opportunities to improve.

If Segmentation data is available, drill down from total to Group, Transient, and Contract metrics looking for opportunities to improve.Slide256

How

do I use the STAR Report?

Many people just use the STAR Reports as a “report card” to measure their performance after the fact.

A more effective approach is to use the STAR Reports as a tool to evaluate a hotel’s performance, identify areas for improvement and put a plan into place to implement changes.

This is what separates the top tier GMs in a company

The next slides will demonstrate an iterative approach utilizing four different steps:

Analyze

Identify

Develop

MonitorSlide257
Slide258

10%

20%

40%

30%

How much time will be spent with STR reports per function?Slide259

How often do we go through this cycle?

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Every month, with last month’s data for next yearSlide260

Quiz Questions

58) Which one of the following is a non-geographic category shown on the STAR report?

Location

Type

Market

Class

59) What information is never included on a STAR report?

Performance data for individual competitors

Performance data for an industry segment relevant to the subject hotel

The names of hotels included in the subject hotels competitive set

Index numbers and Index Percent Changes

60) Which statement is true regarding the format and timing of a STAR Report?

They are normally generated in Excel

If you change data on a STAR report, all of the related values will recalculate, since there are embedded formulas

There are no graphs on the report

Weekly STAR Reports are generated on MondaySlide261

Quiz Questions continued

61) Which statement is true regarding the industry data that a hotel may see on a STAR report?

North America hotels will see industry data for Market, Market Class, Tract and Tract Scale

North America hotels will see data for only a single industry segment

Non-North America hotels will not see any industry segment data

North America and Non-North America hotels see the same exact pages on the STR Report related to industry data

62) Which one of the following is an accurate statement regarding Segmentation and Additional Revenue data on the STAR Reports?

Additional Revenue categories include “F&B”, “Rentals”, and “Other” in addition to Room Revenue

Group Rooms and Revenue are defined as business sold in blocks of 50 rooms or more

Very few Luxury and Upper Upscale chain hotels submit Segmentation and/or Additional Revenue data

The most common example of Contract Rooms and Revenue is airline crew businessSlide262

Application 1 – STAR Report Basics

Use the following table to fill in basic information regarding the STAR Reports.

What

info is displayed?

What

info is not displayed?

Who

receives them?

How

are they generated?

When

are they generated?

Who

am I compared to?

(North America)

Who

am I compared to?

(Non-North

America

)

What

differences?

(NA vs. Non-NA)

Why

do I need it?

How

do I use it?Slide263

Part 2 - Monthly STAR ReportsSlide264

Monthly Table of ContentsSlide265

Tab 2 - Monthly Performance at a Glance

Provides a quick one-page overview of performance relative to your comp set.

Probably the most popular page of a STAR Report.

Displays Occupancy, ADR, and

RevPAR

for your property and your comp set, also Index numbers 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.Slide266

Monthly Performance at a GlanceSlide267

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. Slide268

Tab 4 – Competitive Set Report

Probably the

second most

popular page of a STAR 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, and Ranking information.

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).Slide269

Competitive Set ReportSlide270

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.

The dotted line represents

an Index of

100.

Competitive Set Report – Graph of IndexesSlide271

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 – Another Sample GraphSlide272

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)

Competitive Set Report – Monthly Data TablesSlide273

Graphs display RevPAR Percent Change

The tables display 3 years of YTD, Running 3-month and Running 12-month data with Percent Changes, Index numbers, and Ranking information

Competitive Set Report – Multi Month Data and Graphs

The Running 12-month data provides a 36 month review of property and comp set performance (48 months with percent changes)Slide274

Comp Set Report - Hints

Review the graphs to see the interaction of the different indexes over time.

Check the monthly data to compare current month numbers to trends over last several months.

Check the Running data (YTD, Running 3, and Running 12) to compare current numbers to prior years. Compare Indexes and Ranking numbers.

Check the percent changes to see improvement trends over different time periods.Slide275

Ranking Data - Hints

Look for trends in the Ranking numbers when it comes to actual values. Are the Ranking numbers trending in any direction over time?

Check the monthly Ranks and the Ranks for the Running time periods to see longer trends.

Check the Percent Change Ranking numbers as well. How many hotels are increasing (improving) in certain metrics faster or slower than the subject hotel?Slide276

Industry Report (received by all hotels outside of North America)Slide277

STAR Summary (for hotels in North America and select Non-NA markets)Slide278

STAR Summary – First Hint

Start with the “Census/Sample – Properties and Rooms” section at the bottom of the Summary page to get an idea of the relative size of each of the industry segments. Sizes will generally go from larger to smaller.

The Market should be the largest. Check the properties and rooms. Market Class is a subset of the Market by similar price range, including independents.

Tract is a geographic subset of the Market. And Tract Scale is a further subset of the Tract by similar price range, excluding the independents. The Scale groups are collapsed for Tract Scale.Slide279

STAR Summary – Census and Participation Information

Participation information is displayed for the industry segments and comp set

Census

:

the total

number of

properties/rooms

in a

segment.

Sample

:

the

number of

properties/rooms

that report data to

STR.

Sample

%:

the percentage

of rooms in each segment that report data to

STR.

Check participation.

Numbers generally decrease as you move from Market down to Comp Set.

North America hotels will see Tract Scale and Non-North America hotels will see Submarket Class. This will have the smallest number of properties after the Comp Set.Slide280

Rows display data for your hotel, four industry segments, and your comp set.

Columns display values and percent changes for the current month, YTD, running 3 month, and running 12 month time periods.

There are similar sections for Occupancy, ADR and

RevPAR

.

STAR Summary – My Property vs. Comp Set and Industry SegmentsSlide281

STAR Summary – Supply, Demand, and Revenue Section

Supply

:

the

number of rooms in the segment multiplied by the number of days in the

period.

Check to see if there are more rooms available in each area.

Demand

:

the

number of rooms sold (

excluding

complimentary rooms

).

Check to see if there are more travelers in an area.

Revenue

:

the total

room revenue generated from the sale (rental) of

rooms.

Check to see if there is more money coming into an area.

Percent changes for multiple time

periods are displayed:Slide282

STAR Summary –

Pipeline Information

Under construction:

Vertical construction on the physical building has begun. This does not include construction on any sub-grade structures including, but not limited to, parking garages, underground supports/footers or any other type of sub-grade construction.

Planning:

Project will go out for bids, construction will start within 4 months, or an architect

has

been selected and plans are

underway.

Provides a quick snapshot of pipeline activity in the market.

Check this data for changes from month to month.

Pipeline

data is detailed further in the STR Market Pipeline

Report.Slide283

STAR Response Report

Displays hotel info and participation for properties in the comp set, also months and events, both this year and last year.Slide284

Day of Week and Weekday/Weekend Report Slide285

Day of Week and Weekday/Weekend Report – Day of Week Data

Displays Occupancy, ADR,

RevPAR

, and Percent Changes for each day of the week for the Current Month, Year-to-Date, Running 3-month and 12-month periods.Slide286

Daily Data For Month – My Property vs. Competitive SetSlide287

Segmentation

at a Glance (just one of many Segmentation pages)Slide288

Additional Revenue RevPAR AnalysisSlide289

Segmentation Response Report

Segmentation participation info is displayed for each hotel in the comp set.Slide290

Quiz Questions

Using the information from an excerpt of an “At a Glance” page from a Monthly STAR Report

answer the following question.

December

2015

Occupancy (%)

ADR

RevPAR

My Prop

Comp Set

Index (MPI)

My Prop

Comp Set

Index (ARI)

My Prop

Comp Set

Index (RGI)

Current Month

80.8

69.7

115.9

73.58

75.54

97.4

59.44

52.64

112.9

Year To Date

78.9

71.5

110.4

87.24

84.53

103.2

68.85

60.43

113.9

Running 3 Month

81.2

71.8

113.1

82.00

82.06

99.9

66.58

58.90

113.0

Running 12 Month

78.9

71.5

110.4

87.24

84.53

103.2

68.85

60.43

113.9

63) Which one of the following is an accurate statement regarding the performance at your hotel?

Your Current Month ADR was higher than the Competitive Set ADR

Your Occupancy Index (MPI) has surpassed 100 in each of the four time periods shown

In Running 3 Month performance, your hotel is beating the Competitive Set in all three performance metrics (Occupancy, ADR and RevPAR)

In Year to Date performance, your hotel’s Index numbers exceed 110 in all three performance metrics (Occupancy, ADR and RevPAR)Slide291

Quiz Questions continued

64) The line graph at the top of the Competitive Set Report in a monthly STAR report shows what?

Actual values of Occupancy, ADR and RevPAR of the subject hotel and the competitive set

Actual Percent Changes for Occupancy, ADR and RevPAR of the subject hotel and the competitive set

Index values for Occupancy, ADR and RevPAR

Index Percent Change values for Occupancy, ADR and RevPAR

65) The Competitive Set Report in a Monthly STAR Report shows what information?

12 months of monthly data and 3 years of YTD, Running 3-month, and Running 12-month data

18 months of monthly data and 3 years of YTD, Running 3-month, and Running 12-month data

12 months of monthly data and 2 years of YTD, Running 3-month, and Running 12-month data

18 months of monthly data and 2 years of YTD, Running 3-month, and Running 12-month dataSlide292

Quiz Questions continued

Using the information from an excerpt of a sample “Competitive Set Report” page from

a Monthly STAR Report, answer the following question.

Occupancy (%)

Jul

Aug

Sep

Oct

Nov

Dec

My Property

80.4

75.5

71.5

83.9

78.8

80.8

Competitive Set

76.0

72.6

67.1

78.8

66.6

69.7

Index (MPI)

105.8

103.9

106.5

106.4

118.2

115.9

Rank

2 of 5

2 of 5

2 of 5

2 of 5

2 of 5

2 of 5

% Change

My Property

-10.1

2.0

7.3

5.8

-1.3

9.1

Competitive Set

1.5

1.5

0.3

10.1

3.8

22.2

Index (MPI)

-11.4

0.6

7.0

-3.9

-4.9

-10.7

Rank

5 of 5

2 of 5

1 of 5

4 of 5

4 of 5

4 of 5

66) Which of the following statements best describes performance of your hotel over the last six months?

Your hotel is the Occupancy leader (highest occupancy) in the Competitive Set

Your hotel’s Occupancy Index has progressively improved each month

Your hotel’s Occupancy Rank has never been higher than 3 of 5

Your hotel’s Occupancy Rank has consistently been 2 of 5Slide293

Quiz Questions continued

67) Which is an accurate statement regarding the Day of Week and Weekday/Weekend tab in the Monthly STAR report?

It shows all the Key Performance indicators for all four time periods for the property and the comp set

It shows data by every day of the week, as well as a Weekday and Weekend subtotal

It is a very valuable page and can be used to find areas of improvement

All of the aboveSlide294

Quiz Questions continued

Using the information from an excerpt of a sample “Day of Week and Weekday/Weekend

Report” Page from a Monthly STAR Report, answer the following question.

Occupancy (%)

My Property

Competitive Set

Index (MPI)

Weekday/Weekend

Weekday

Current Month

80.3

8.5

69.7

19.1

115.1

-8.9

(Sun-Thu)

Year To Date

76.5

-5.1

71.0

3.3

107.8

-8.1

Running 3 Month

79.0

3.9

71.3

9.1

110.8

-4.8

Running 12 Month

76.5

-5.1

71.0

3.3

107.8

-8.1

Weekend

Current Month

82.0

10.4

69.5

29.2

117.9

-14.6

(Fri-Sat)

Year To Date

85.0

-2.7

72.8

7.2

116.8

-9.3

Running 3 Month

86.8

6.0

73.0

18.2

118.9

-10.3

Running 12 Month

85.0

-2.7

72.8

7.2

116.8

-9.3

Total

Current Month

80.8

9.1

69.7

22.2

115.9

-10.7

Year To Date

78.9

-4.4

71.5

4.4

110.4

-8.5

Running 3 Month

81.2

4.5

71.8

11.7

113.1

-6.4

Running 12 Month

78.9

-4.4

71.5

4.4

110.4

-8.5

68) Based on the information provided above, which one of the following is an accurate statement?

The Weekday Occupancy for both your hotel and the competitive set are consistently above the Weekend Occupancy for all time periods

The Weekend Occupancy this year for your hotel is increasing in all four time periods compared to last year

The Weekend Occupancy for your hotel is consistently higher than your Competitive Set for all time periods

The Total Current Month and Running 3 Month Occupancy for both your hotel and the Competitive Set are greater than the Year To Date and Running 12 Month OccupanciesSlide295

Quiz Questions continued

Using the information from an excerpt of a sample “Segmentation Day of Week –

Current Month” Page from a Monthly STAR Report, answer the following question.

Current Month

Transient

Group

Contract

Total

My Prop

Comp Set

Market Scale

My Prop

Comp Set

Market Scale

My Prop

Comp Set

Market Scale

My Prop

Comp Set

Market Scale

RevPAR

Sunday

83.88

83.04

112.36

31.39

15.66

20.36

0.00

7.63

0.00

115.27

106.33

132.71

Monday

106.45

112.96

155.21

44.83

20.95

31.08

0.00

7.69

0.00

151.29

141.60

186.29

Tuesday

97.88

100.32

138.18

51.72

27.58

39.41

0.00

7.26

0.00

149.61

135.16

177.59

Wednesday

101.99

103.22

142.53

45.38

28.44

37.22

0.00

7.50

0.00

147.37

139.16

179.75

Thursday

97.09

97.45

140.59

53.88

27.57

36.47

0.00

7.83

0.00

150.96

132.85

177.06

Weekday

97.25

99.27

137.41

44.77

23.52

32.25

0.00

7.59

0.00

142.02

130.38

169.66

Friday

107.81

110.59

144.00

52.20

25.32

26.32

0.00

8.14

0.00

160.01

144.06

170.32

Saturday

140.46

129.98

156.78

33.28

20.66

24.99

0.00

7.68

0.00

173.74

158.32

181.77

Weekend

125.79

121.36

151.10

41.78

22.73

25.58

0.00

7.88

0.00

167.57

151.98

176.68

Total

106.84

106.04

141.31

45.58

23.08

30.39

0.00

7.53

0.00

149.37

136.65

171.70

69) Based on the information provided above, which one of the following is an accurate statement?

Your hotel ran a lower Group RevPAR than the Competitive Set on both Weekdays and Weekends

Your hotel had its highest Transient RevPAR on Saturdays

Your hotel had a Transient RevPAR higher on Weekdays than Weekends

Your hotel‘s Total Group RevPAR for the month was less than that of the Competitive SetSlide296

Application 2 – Monthly STAR Reports

Obtain STAR Reports for a variety of different types of hotels (different Scales, chain and independent) for a variety of different geographic areas (large urban cities versus smaller cities, suburban, airport, or resort areas).

Select a specific hotel and take a look at the Monthly STAR Report for this property.

Pretend that you have just taken over as the Regional Manager responsible for this hotel and you are preparing to meet with the General Manager. Make a list of items to discuss, including:

Recommendations that you are going to make

Questions that you are going to ask

What are issues that need to be investigated?

What are possible strategies that should be considered?

Check the Summary Page. How does the subject hotel perform compared to various industry segments nearby?Slide297

Application 2 continued

Check the Comp Set Page.

How does the subject hotel perform compared to the comp set?

Has this performance changed over time?

What do the Index Percent Changes show you over time?

What do the ranking values show you?

Check the Response Page. Are all members of the comp set submitting monthly and weekly data on a consistent basis?

Check the Weekday/Weekend and Day of Week Page. Are there opportunities for improvement for the subject hotel?

Check the Daily Data for the Month Page for the current month. Compare the daily performance of the subject hotel to the comp set during the prior month. Were there special events where the subject hotel seemed to have performed better or worse than the comp set?Slide298

Application 2 continued

If the hotel has Segmentation Pages, compare the Group, Transient, and Contract metrics for the comp set to the subject hotel. Are there areas of possible improvement for the subject hotel?

If the hotel has Additional Revenue Pages, compare the Room, Food & Beverage, and Other Revenue metrics for the comp set to the subject hotel. Are there areas of possible improvement for the subject hotel?

If the hotel has additional competitive sets, compare the subject hotel to the other comp sets. If the hotel does not have additional comp sets, could it benefit from one?

Is there any question that the subject hotel has an accurate comp set? Can you speak to the quality of the comp set? Slide299

Part

3 -

Weekly STAR ReportsSlide300

Weekly Table of ContentsSlide301

Weekly Performance at a Glance – My Property vs. Comp SetSlide302

Daily Data For MonthSlide303

Perspective Pages – one for Occupancy, ADR and RevPARSlide304

Weekly STAR Response Report

Segmentation version shows current week and three different types of data.Non-segmentation version shows four weeks of STAR data.Slide305

Weekly Segmentation at a GlanceSlide306

Quiz Questions

70) The “Weekly Performance At A Glance” tab on the Weekly STAR report displays

what information?

Detail daily data for every day of the prior week

A weekly total

Running 28-day data

All of the above

71) The “Perspectives” pages of the Weekly STAR report show all but the following information?

A recap of daily data performance for the last 28 days

12 weeks of weekly data

Subtotals for the key performance indicators for the Current Week, Running 28 Days, and Running Month-to-Date

Monthly performance numbers for the last 3 months

72) The “Daily Data for the Month” tab on the Weekly STAR report displays what information?

Provides a running MTD total based upon daily data

Shows KPIs for the subject property and the competitive set for each day of the current month

Displays graphs of index values for every day of the current month

All of the above are displayed on this reportSlide307

Quiz Questions continued

Using the information from an excerpt of a sample “Daily Data for the Month” page from a Weekly STAR Report, answer the following question.

Fr

Sa

Su

Mo

Tu

We

Th

Fr

Sa

Occupancy (%)

Feb

1

2

3

4

5

6

7

8

9

My Property

85.1

80.4

54.5

74.1

74.9

78.4

69.5

69.8

52.2

Comp Set

49.9

46.2

40.0

77.3

78.2

83.9

88.0

65.6

60.1

Index (MPI)

170.4

173.8

136.4

95.9

95.8

93.5

79.0

106.5

86.8

% Chg

My Property

32.3

135.6

46.3

31.3

32.6

16.3

-26.7

12.7

-6.3

Comp Set

-6.1

29.4

5.4

7.6

3.5

18.2

16.9

-10.1

0.2

Index (MPI)

40.9

82.2

38.8

22.0

28.1

-1.6

-37.3

25.4

-6.6

73) Based upon the first nine days of the month, what can you determine about your hotel’s Occupancy performance?

The Competitive Set’s Occupancy was significantly below your hotel’s occupancy for the first three days of the month

The Competitive Set’s ADR was well above your hotel’s ADR on the latest Friday and Saturday

Your hotel had the highest Occupancy in the Competitive Set every day

The Competitive Set’s Occupancy improved year-over-year every daySlide308

Application 3 – Weekly STAR Reports

Obtain a sample Weekly STAR report. Analyze the performance of “your” hotel compared to the comp set and the industry segments in a similar manner as in the Monthly Report application.

Optionally, you could create a PowerPoint to present your findings.

You could play the role of the GM at a weekly staff or department head meeting and review the performance of your hotel and discuss goals and strategies with your staff.Slide309

Appendix 1 –

Additional Property ReportsSlide310

Daily STAR Property Report – At a GlanceSlide311

Online Reporting Tool - sampleSlide312

Bandwidth Analysis Report – Tab 2Slide313

RPM (RevPAR Positioning Matrix) Report – Tab 2Slide314

F&B STAR Report - Department SummarySlide315

The SHARE Center

Supporting Hotel-related Academic Research and Education

Hotel Industry Performance Reports – Review Version

(Trends, Pipeline, HOST/Profit-

ability, other Ad-Hoc Reports, and Destination Reports)Slide316

Introduction to Ad-Hoc Reports

Trend Reports

Pipeline Reports

HOST/Profitability Reports

Destination Reports (some content optional)

Additional Ad-Hoc Reports: Census Database Files, Prop & Room Counts, Ad-Hoc Industry Data Files, and Forecasts – optional supplement

Table of ContentsSlide317

Note regarding Application Exercises

There are Application Exercises that are suggested at the end of each section. These are very valuable since they offer hands-on experience working with live hotel industry data.

The Reports that relates to these exercises come with the training program. There are Trend, Pipeline, and HOST Reports for the market of Nashville.

You can obtain similar reports that are relevant to a market or country closer to your university.

Contact the SHARE Center if you have any questions.Slide318

Part 1 - Introduction to

Ad-Hoc ReportsSlide319

What is the difference between

STAR Reports and Ad-Hoc Reports?

STAR Reports refer to the reports that are delivered to hotels that compare the subject property’s performance to the competitive set and to one or more surrounding industry segments.

Hotels and companies have annual subscriptions which include STAR reports as well as other services.

The STAR reports are generated and delivered each month, week, and/or day. These are relied upon by general managers, revenue managers and by Sales and Operations departments.Slide320

What are Ad-Hoc Reports?

STR generates many other reports for both hotel companies and a variety of additional third parties.

These reports provide performance information as well as additional data.

These reports may be requested on a one-time basis, hence the name “ad-hoc” reports.

Customers may select a specific industry segment or a user-defined group of hotels.Slide321

Types of Ad-Hoc Reports (and Data Files)?

The most popular types of Ad-Hoc Report are:

Trend Report

– monthly and daily performance information

HOST/Profitability Report

– annual Profit and Loss data

Pipeline Report

– development information, hotels under construction and in planning

Additional Ad-Hoc Reports and Data files include:

Property and Room Counts

– size and structure information

Hotel Census database

– hotel attribute information

Forecast

– future performance projections

Ad-Hoc Industry Data File

– performance snapshot on multiple industry segmentsSlide322

Hotel Industry Projects and

Ad-Hoc Reports

The three most popular types of hotel industry research projects are:

Market Study

– An overview of the hotel industry in a particular area, such as a country, city or another geographic segment. A good market study includes size and structure information, performance information and a development update.

Impact Analysis

– What is the impact of some event on the hotel industry in a specific area? There are a wide range of different possible events including: sporting, weather, political and attractions. The event could be a past event or could be a future potential event. This kind of research includes performance and profitability information.

Feasibility Study

– Is it feasible (a good business decision) to build a specific type of hotel in a specific area? It could be more open-ended

suc

ahs “What type of hotel should I build in this area?” or “Where should I build this type of hotel?”. This type of research includes performance, profitability and development information.Slide323

What is the difference between Ad-Hoc

Reports and Destination Reports?

Ad-Hoc Reports, especially the Trend Reports provide historic performance information on industry segments or user-defined groups of hotels.

The Destination Reports provide ongoing performance information on industry segments or user-defined groups of hotels.

Recipients, such as CVBs and Tourism Organizations, can set up a Destination Report, define the specific segments or group of hotels that they are interested in tracking, and obtain ongoing data each week or month.Slide324

Application 1 – Types of Industry Reports

Use the following table to fill in basic information regarding who receives

various types of Hotel Industry Reports.

Type of Report

Hotel or Hotel Company

Third Party:

Consultant, Developer

Tourism Organization: CVB, hotel association

STAR Report

X

Ad-Hoc Reports

X

X

X

Destination Reports

X

X

XSlide325

Application 2 – Uses of Ad-Hoc Industry Reports

Use the following table to fill in basic information regarding the uses of

various types of Ad-Hoc Industry Reports.

Report/Research

Market Study

Impact Analysis

Feasibility Study

Academic Research

1. Trend Report

X

X

X

X

2. Host

/Profit-ability R

eport

X

X

X

X

3. Pipeline Report

X

X

X

4. Property & Room

Count

X

X

5. Hotel

Census Database

X

X

X

6. Forecast

X

X

X

X

7. Ad-Hoc

Industry Data file

X

XSlide326

Trend ReportsSlide327

Options for Selecting Hotels

Trends are the most popular ad-hoc report.

There are three different options when it comes to selecting hotels for a Trend report:

You may choose a standard industry segment, based upon pre-defined geographic and non-geographic categories.

You may select hotels based upon a wide range of variables.

Or, you may choose a specific group of individual properties.Slide328

Selecting Specific Individual Hotels

There are times when you might want to select a specific set of individual properties.

You may request a “Participation List” which displays all the hotels that submit data to STR in an industry segment or based upon variables.

You may then select specific hotels from the list that you would like to have included in your Trend report.

When requesting a Trend, you may provide a list of STR numbers. These are the codes that STR uses to identify hotels.Slide329

Rules Related to Trend Reports

You must select 4 or more participating hotels. If there is a month when all 4 hotels did not submit data for any reason (hotel not open, hotel did not report), data for that month will not appear. For that reason, it is advisable to select more than 4 hotels.

There cannot be too high a percentage (based upon number of rooms) for a single hotel, chain, or parent company. If you have a problem, you will need to add or remove hotels until the percentages are okay. The U.S. percentages are 40, 40, and 60. Certain non-North America percentages are 50, 50, and 60.

Basically, the same rules as for comp sets. Slide330

Types of Data in a Trend Report

By default, a Trend Report includes monthly data.

Twelve Month Moving Average raw data is also included. This data is great for graphing performance over time.

You may also request special types of data:

Daily

data - back to 2000 in most areas, great for Day of Week analyses or tracking special events

Day of Week

data – roll ups of daily data

Segmentation

data – separate Group, Transient, and Contract numbers

Weekday/Weekend

data – approximate business vs. leisure

Quarterly

dataSlide331

Date Ranges for Data in a Trend Report

When it comes to monthly data, you can request a:

Standard Trend Report – beginning in 2010

Extended Trend- beginning in 2000

Full Trend - beginning in 1987, depending upon the part of the world

Or you can simply specify a starting date

Or ask to go back as far as possible

Daily data is available from approximately 2000 on. When requesting daily data, specify a starting year.

Segmentation data is available from approximately 2004 on. Slide332

Currency Options

There are multiple options when it comes to the currency displayed in a Trend report.

User may select U.S. Dollars, Euro, Local Currency or any other currency.

Examples of when different currencies are necessary:

A Development Company in the U.S. is researching a market in Europe and wishes to do analysis on ADRs in both USD and Euro.

A Hotel company in Spain is exploring opportunities for development in South Africa and needs to see Revenue data in both Euro and South African Rand.Slide333

Trend Table of ContentsSlide334

Data By Measure (with monthly data, 12-month version also)Slide335

Percent Change By Year (one of two pages showing % changes)Slide336

Twelve Month Moving Average with Percent ChangeSlide337

Hint – Twelve Month Moving Average

with Percent Change data

The Twelve Month Moving Average (or Running Twelve Month) data is very valuable when it comes to analyzing performance over time.

This data removes the seasonal distortion that you see in Monthly data.

Actual values of KPIs and raw data with percent changes are neatly arranged in columns

The data on this page is very easy to work with when it comes to creating graphs in Excel. You can easily create graphs of all the various metrics and include them in presentations. Examples will follow.Slide338

Twelve Month Moving Average data – sample graphsSlide339

Day of Week AnalysisSlide340

Daily Raw Data

Includes multiple date-related fields to make it easy to do variety of subtotalsSlide341

Weekday / Weekend TrendSlide342

Monthly Segmentation DataSlide343

Transient vs. Group ADR – sample graphSlide344

Hint – Census and Sample Percent numbers

Several of the Trend pages (all of the various Raw Data pages and the Classic page) include a section at the far right of the report titled “Census & Sample %”.

This section consists of three columns:

Census Props – total number of hotels in the area/group selected

Census Rooms – total number of rooms in the hotels above

Percent Rooms STAR Participation – the percent based upon number of rooms of the hotels that submit data to STR

This data is important to check. A change in the number of Census Props indicates an increase or decrease in the number of hotels, due to Opens or Closes.Slide345

Census & Sample Percent

numbers - continued

The number of Census Props can change due to Conversions only if you select an industry segment such as Scale. In that case, the Census Props will indicate how many hotels were in that scale on that specific month.

A change in the number of Census Rooms indicates an increase or decrease in the number of rooms, due to Adds or Drops.

A change in the Percent Participation indicates that a hotel started or stopped submitting data to STR.

All of these changes are important to check, since they can affect performance. Slide346

Hint – Trends and Consistent Sample

Changes in the Census Props or Rooms, or the Percent Participation can affect the performance numbers on a Trend. This goes back to the issue of “Consistent Sample”.

You may want to change your selection criteria, to remove hotels that have opened or closed, as well as ones that have started or stopped submitting data to STR during the time period you are analyzing.

It is possible to request a Participation list prior to generating the Trend. Remember to rerun a Trend, you must change the group of hotels by two or more.Slide347

Monthly Raw DataSlide348

Response PageSlide349

Quiz Questions

74) Which is NOT an accurate statement regarding the differences between STAR Reports, Ad-hoc Industry Reports, and Destination Reports?

Ad-hoc Industry Reports are requested on a one-time, as needed basis

Hotels and hotel companies have annual subscriptions to STAR reports and receive them on a regular basis

Destination Reports are most often received by tourism organizations

Hotels and hotel companies cannot obtain Ad-Hoc Industry reports or Destination Reports

75) Which of the following is a rule related to requesting Trend report(s)?

You must select four or more participating hotels

A single hotel may account for a maximum of 40 percent of the participating room supply (in NA, 50% in non-NA)

If you request multiple Trend reports, the hotels you have selected must differ by more than one participating hotel on subsequent Trend request

All of the above are rules related to requesting a Trend Report

 Slide350

Quiz Questions continued

76) Which of following is NOT a valid way to select hotels for a Trend Report?

Specify an industry segment such as a country, market or tract

Specify a query based upon variables such as Open Date, Number of Rooms, or Meeting Space

Obtain a Participation List of hotels and specify individual properties

Ask STR to select the best performing hotels in an area

77) Trend reports are available in which currency?

Any currency

U.S. Dollars ($) only

Euro only

Local currency only

 Slide351

Quiz Questions continued

78) 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?

Daily data

Weekly data

12-month moving average data

Segmentation data

79) Several pages in the Trend Report display columns with Census Props and Rooms and STAR participation. Which is an accurate statement about this data?

The data in these columns will not change over time

These columns cannot help determine if there is a “consistent sample” for the Trend Report

These columns show the total number of hotels and rooms for the selected group of hotels, as well as the percent of those rooms that submit performance data to STR

All of the statements are accurateSlide352

Quiz Questions continued

Using the information from an excerpt of a sample “Trend Report”, answer the following question.

80) Which one of the following is an accurate statement?

The occupancy for the year-to-date period ending September 2012 is down from the same period in 2011

The ADR for the first eight months of 2013 was up from the same period in 2012

The September YTD occupancy for both 2013 and 2012 was exactly the same

The RevPAR in every month of 2013 was greater than the same months in 2012

Date

Occupancy

ADR

RevPar

This Year

% Chg

This Year

% Chg

This Year

% Chg

Jan 12

65.9

12.0

102.08

6.3

67.23

19.1

Feb 12

68.1

-0.8

108.64

5.4

74.02

4.6

Mar 12

80.1

-0.1

137.67

8.0

110.29

8.0

Apr 12

84.8

6.3

148.49

11.5

125.93

18.4

May 12

81.4

-4.4

177.83

5.2

144.80

0.6

Jun 12

94.0

3.7

199.11

3.1

187.13

6.9

Jul 12

89.7

-1.0

166.30

3.1

149.21

2.1

Aug 12

89.6

0.4

171.65

5.9

153.87

6.4

Sep 12

90.4

5.1

193.06

15.0

174.50

20.9

Oct 12

91.7

4.3

198.63

10.7

182.14

15.6

Nov 12

83.7

-2.3

175.93

4.4

147.24

2.1

Dec 12

73.1

6.5

111.63

-2.1

81.54

4.3

Sep YTD 2012

82.8

2.0

159.73

6.7

132.19

8.9

Total 2012

82.8

2.2

161.13

6.3

133.37

8.7

Jan 13

63.2

-4.0

104.13

2.0

65.85

-2.1

Feb 13

73.2

7.4

110.43

1.6

80.80

9.1

Mar 13

84.8

5.9

145.35

5.6

123.29

11.8

Apr 13

84.8

-0.1

155.54

4.7

131.83

4.7

May 13

91.3

12.1

181.69

2.2

165.83

14.5

Jun 13

72.3

-23.0

210.56

5.8

152.33

-18.6

Jul 13

82.8

-7.7

182.55

9.8

151.18

1.3

Aug 13

85.2

-4.9

176.24

2.7

150.23

-2.4

Sep 13

82.7

-8.6

190.15

-1.5

157.17

-9.9

Sep YTD 2013

80.2

-3.1

167.81

5.1

134.61

1.8 Slide353

Application 3 – General Market Overview

Request a Trend Report for a geographic area such as a country or city or a specific group of hotels that you are interested in studying.

Review the data pages and look for current general performance trends. You can look at current month, YTD, Running 12-month or Annual data.

Fill out the table on the next page with recent metrics.

You can check to see if any of the actual values are record numbers. In an economic recovery, you can compare the actual values to prior peaks or valleys. You can compare the current year percent changes to prior year numbers.Slide354

Application 3 continued

Use the following table to fill in current performance information regarding the market or group of hotels that you are studying. You can do this for multiple time periods: current month, YTD, Running 12-month, Annual (the last year).

Metric

Actual Value

Record?

Percent Change

Special Note

Occupancy

ADR

RevPAR

Supply

Demand

RevenueSlide355

Application 4 – Historical Performance

Request a Trend Report for a geographic area such as a country or city or a specific group of hotels that you are interested in studying.

Review the data pages and look for longer historical performance trends. You can look at monthly data

or the R

unning 12-month data over time.

Fill out the table on the next page with starting

and ending values based upon Running 12-month data (Tab 6). Calculate the differences and the percentages

.

What general

historical observations can you make about your market?Slide356

Application 4 continued

Use the following table to fill in historical performance information regarding the market or group of hotels that you are studying. Use Running 12-month data and find the value for the first and last month displayed on the Trend Report.

Metric

Starting Value

Ending Value

Difference

Percentage

Occupancy

ADR

RevPAR

Supply

Demand

RevenueSlide357

Application 5 – Historical Perf. –

Excel Alternative

Refer to the Running 12-month page

(Tab 6) in

a Trend Report. Using Excel, create line graphs for

t

he Occupancy, ADR and

RevPAR

values. You can create separate graphs for each value or try to combine some values on the same graph.

Create line graphs

for Supply, Demand, and Revenue. How have all of the actual values changed over time?

Create line graphs for the Percent

Changes (separately or combined). Compare the Percent Change graphs to the corresponding graphs of the actual values. Compare different Percent Change graphs to other Percent Changes to see the interaction, for example: Supply and Demand to Occupancy, or Occupancy to ADR.Slide358

Application 6 – Performance Drill-Down

Refer to the additional pages

in

a Trend Report that help to drill down into performance

metrics for different time periods or for different business segments

. These pages include the Data by Measure (Tab 2), Twelve Month Moving Average (Tab 5), Day of Week (Tab 7), Weekday/Weekend (Tab 9), Quarterly (Tab 10) and Monthly Segmentation (Tab 11).

Fill out the table on the next page with highs and lows. You can use historical, current Running 12-month or recent Annual numbers. What do you learn about your market?

Optionally,

you could use

Excel to create bar graphs to visually display some of the high

and low information. Slide359

Application 6 continued

Use the following table to fill in highs and lows for various time periods and types of data.

You can include the actual value as well.

Metric

High

Occ

Low

Occ

High ADR

Low ADR

Month of the Year (Jan-Dec)

Month in history (YYYYMM)

Day of Week

(Sun-Sat)

Weekday

or Weekend

Quarter in history

(YYYYQ1-4)

Business Segment (Group or Transient)Slide360

Application 7 – Trend Response

Refer to the Monthly Raw Data page (Tab 13) or the Classic page (Tab 14)

and the Response p

age (Tab 15).

How many hotels and rooms were there in your

market at the beginning of the

date range selected and how many are there now? Have these numbers changed dramatically over time?

Check the Percent Participation to see if that has changed dramatically over time.

Check the Response page and review the hotels that submit data and the ones that do not submit data.

What can you learn regarding consistent sample and data reliability?Slide361

Part 2 - Pipeline ReportsSlide362

What is a Pipeline Report?

Pipeline Reports display statistics on existing hotels, hotels in various phases of development and conversions.

Reports include property detail on existing hotels and project detail on all pipeline projects.

Reports also show changes to existing supply, including opens, closes, room adds/drops, and conversions over time.Slide363

Pipeline Phase Definitions

Hotels that are in the Pipeline are referred to as “Projects”

There are two phases for existing hotels:

Existing Supply

– those hotels that are already open

Recently Opened

– hotels that have opened within the previous 12 months. These hotels will also be included in the Existing Supply counts.Slide364

Pipeline Phase Definitions continued

There are four phases for hotel projects in the development pipeline:

In Construction

– Vertical construction on the physical building has begun. This does not include construction on any sub-grade structures including, but not limited to, parking garages, underground supports/footers or any other type of sub-grade construction.

Final Planning

– Confirmed, under contract projects where construction will begin within the next 12 months.

Planning

– Confirmed, under contract projects where construction will begin in more than 13 months.

Unconfirmed

– Potential projects that remain unconfirmed at this time.Slide365

Pipeline Report – Table of ContentsSlide366

Supply SummarySlide367

Pipeline by Brand Summary – part 1Slide368

Pipeline by Brand Summary – part 2Slide369

Changes to Existing Supply by Brand – part 1Slide370

Changes to Existing Supply by Brand – part 2Slide371

Data By PropertySlide372

Construction PipelineSlide373

Quiz Questions

81) What are the four phases for hotel projects in the development pipeline?

In Construction, Post Planning, Planning and Unconfirmed

In Construction, Final Planning, Planning and Unconfirmed

In Construction, Final Planning, Post Planning and Unconfirmed

In Construction, Post Planning, Planning and Pre-Permit

 Slide374

Quiz Questions continued

Using the sample “Supply Summary” page from a Pipeline Report, answer the following two questions

82) Which one of the following is an accurate statement regarding Supply growth over the last 5 years?

The Upper Upscale segment has the largest decrease in supply

The Upscale segment experienced a significant increase in supply

The Luxury Scale group experienced a significant decrease in Supply

The Independent supply increased significantly from 2010 to 2013

83) Which two chain scales will probably experience the largest Supply growth in the near future?

Upper Upscale and Midscale

Upscale and Upper Midscale

Upper Midscale and Midscale

It is impossible to tell from the information provided

Historic Supply

Pipeline Projects

Rooms

Sep-08

Sep-09

Sep-10

Sep-11

Sep-12

Sep-13

In Constr.

Final Planning

Planning

Unconfirmed

Luxury

185

185

185

185

Upper Upscale

4,393

4,393

3,681

4,395

4,197

4,641

475

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

175

616

Total

21,922

21,815

22,958

23,682

24,114

24,355

1,114

2,326

974

616 Slide375

Quiz Questions continued

 84) Which is a true statement regarding the Changes to Existing Supply tab of a Pipeline Report?

It shows the net gain or loss of hotel rooms over time by brand and scale

It shows changes to existing supply for two time periods, last 12 months and last 60 months

It can be used to analyze the conversion activity in a specific area

All of the above are true statements

 Slide376

Quiz Questions continued

Using the sample “Changes to Existing Supply by Brand” page from a Pipeline Report, answer

the following question

85) Which Upscale Brand experienced the

most significant net change

in room supply over the last 12 month period?

Doubletree

Springhill Suites

Crowne Plaza

Courtyard

12 Month Change

Sep-12

Add

Removed

Net

Sep-13

Existing

New

Converted

Room

Converted

Rooms

Gain /

Existing

Supply

Build

In

Additions

Closed

Out

Removed

Loss

Supply

Upscale

Ascend Collection

50

-

50

Cambria Suites

247

-

247

Courtyard

1,004

125

125

1,129

Crowne Plaza

372

(193)

(193)

179

DoubleTree

1,260

4

(3)

1

1,261

Four Points

329

-

329

Hilton Garden Inn

513

-

513

Homewood Suites

113

-

113

Hyatt House

136

136

136

Hyatt Place

432

-

432

Radisson

-

Residence Inn

730

-

730

Springhill Suites

1,015

-

1,015

Upscale Total

6,065

261

-

4

-

(193)

(3)

69

6,134 Slide377

Quiz Questions continued

 86) Which is an accurate statement regarding the Construction Pipeline detail tab of a Pipeline Report?

The Construction Pipeline page lists each hotel under construction or in planning with detailed project information

Some projects are identified as “Unaffiliated”, which can mean that the hotel will be an Independent or the chain has not been decided upon yet

Often times Owner and Architect information are provided for a project

All of the statements above are accurate

 Slide378

Application 8 – Pipeline Report

Obtain a Pipeline Report for a geographic area that you are interested in studying.

Review the pages and look for past or future Supply trends.

Fill out the table on the next page using the data contained on various pages of the Pipeline Report.

Optionally, you could generate graphs of the different Pipeline data similar to the samples on the prior slides.

What observations related to development are you able to make regarding your market?Slide379

Application 8 continued

Use the data from various pages of the Pipeline Report to fill in answers on the following table.

Which scale had the most growth in the last 5 years?

Which scale has the most rooms In Construction?

Which scale has the most rooms Under Contract?

Which scale has the largest number of existing rooms?

Which scale will have the largest number of existing rooms?

Which brand has the most rooms Under Contract?

Which brand(s) had the largest

net change due to conversions?Slide380

Part 3 - HOST/Profitability ReportsSlide381

What is a HOST/Profitability Report?

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 HOST/Profitability Report displays annual Profit and Loss information, including Revenue, Expense, and Profit accounts

Both a HOST report and Profitability report display data for two years. (“Consistent sample” is relevant for this reason.)

An annual industry report called the “HOST Almanac” is also available. Ratios are provided for Total U.S., Chain Affiliated vs. Independent Hotels, Geographic Regions, and by Location, Price and SizeSlide382

Requesting a HOST/Profitability Report

When requesting a HOST/Profitability report, you may specify a standard industry segment, a group of properties based on countless variables, or a user-defined set of individual hotels.

It is possible to request a HOST/Profitability Participation Report that lists the hotels that submit P&L data in an area.

Approximately 5,200 hotels submit P&L data in the U.S. and over 2,500 hotels submit P&L data outside the U.S..

Since there are separate Full-Service and Limited-Service reports, you want to select hotels accordingly or you will need to get two reports.Slide383

Introduction to HOST/Profitability Reports

HOST/Profitability Reports list standard P&L accounts:

Revenue

: Rooms, Food, Beverage, Other F&B, Telecommunications,

Other Operated

Depts

, Rentals and Other Income, Cancellation Fees

Departmental Expense

: Rooms, F&B, Telecom, Other Operated

Depts

& Rentals

Departmental Profits

: same as above

Undistributed Operating Expenses

: Administrative & General,

Marketing, Utility Costs, Property Operation & Maintenance

Gross Operating Profit

: then Franchise Fees, Management Fees, and

Income Before Fixed Charges

Selected Fixed Charges

: Property Taxes, Insurance, Reserve for

Capital Replacement

Amount Available for Debt ServiceSlide384

Introduction – More Accounts

Additional P&L-related information appears at the bottom:

Supplemental Payroll Analysis

: Rooms, Total Food & Beverage,

Telecommunications, Other Operated

Depts

, Administration &

General, Marketing, Property Operations & Maintenance

Supplemental Food & Beverage Information

: Cost of Food Sales, Cost

of Beverage Sales, Food & Beverage Payroll, Food & Beverage

Other Expenses

For detailed definitions of each account, refer to the Uniform Systems of Accounts for the Lodging Industry (11

th

) EditionSlide385

Introduction – Key Metrics

For each of these accounts, the HOST/Profitability Report displays three different metrics:

Ratio to Sales

(RTS) – the total Revenue or Expense divided by the total amount of Sales (Total Revenue) in most cases. The Ratio to Sales for Departmental Expenses and Profits (Rooms, F&B, Telecom) are based on the respective revenues.

Amount Per Available Room

(APR) – the total Revenue or Expense divided by the number of rooms in the hotel. Relates data to RevPAR indirectly.

Amount Per Occupied Room

(APO) – the total Revenue or Expense divided by the total annual number of occupied rooms for the hotel. Relates data to ADR

.

The actual amounts (annual dollar numbers) are not displayed, but you can calculate them: APR * Number of Rooms.Slide386

Custom HOST Report – Table of Contents

Slide387

Tab 2 - HOST Report Summary page - Revenues and DepartmentsSlide388

Tab 2 - HOST Report Summary page – Undistributed,

GOP and FCsSlide389

Tab 2 - HOST Report - Summary page

(Supplemental Payroll Analysis)Slide390

Participation ReportSlide391

WW Annual Profitability Report- Table of Contents

Slide392

Quiz Questions

87) A HOST or Profitability report displays what type of information?

Profit and Loss information, including revenue, expenses and profit accounts

Balance Sheet (Assets) information

Monthly performance (Occupancy, ADR, RevPAR) data

All of the above

88) The HOST Report displays data based upon what time period?

Weekly

Monthly

Quarterly

Annual

89) A HOST or Profitability report display data for how many years?

One

Two

Three

TenSlide393

Application 9 – HOST/Profitability Report

Obtain a HOST/Profitability Report for a geographic area or group of hotels that you are interested in studying. You could obtain additional reports for multiple years. Or you could obtain additional reports for different groups of hotels (Class, Scale, Tract/Submarket) in the same area.

Look for changes in various Revenue, Expense, or Profit accounts. Compare the areas over time to see which numbers are going up or down. Compare the different groups of hotels to see which have higher or lower numbers.

Optionally, you could generate graphs of the P&L data similar to the samples on the prior slides.Slide394

Application 10 – Market Study Part 2

In the first training on Hotel Industry Analytical Foundations, there was an application exercise to start a Market Study where you compiled size and structure information for a geographic area, such as a country or city, using Property and Room Count data by various geographic and non-geographic categories.

Now for the same geographic area that you selected before, obtain the following Hotel Industry Performance Reports:

Trend Report including:

Monthly data for as far back in history as it is available

Daily data for at least a couple years if available

Segmentation (Group, Transient, and Contract) data if available

Pipeline Report

HOST/Profitability ReportsSlide395

Application 10 continued

Using the data from these reports, you can select one of many questions to answer, problems to solve, or topics to analyze. For example, from the Trend Reports, here are some possibilities:

Compare the Occupancy, ADR,

RevPAR

, Supply, Demand, and Revenue, both the actual values (Running Twelve Month or monthly) and the Percent Changes. How has the area been affected by economic downturns and recoveries?

Study the daily performance metrics of an area over time. You can graph actual values and Percent Changes. How was the area affected by conventions, sporting events, weather events, other special events, or holiday changes?

Compare the Weekday/Weekend or Day of Week metrics (Occupancy, ADR actual values) of an area over time. Have certain days been more or less affected during recent years?

Compare the Group and Transient metrics (Demand, ADR actual values) of an area over time. How have different types of business been affected during recent years?Slide396

Application 2 continued

Based upon data from the Pipeline Report, here are some possibilities to analyze:

What kind of Supply changes have taken place in this area over the last five years? What Scales and chains have seen increase or decrease?

What kind of Supply changes are predicted for the next couple of years? What Scales and chains will see the most development?

What kind of conversion activity has taken place during the last five years? Which chains have been most affected by “Conversions In” and Conversions Out”? Are chain hotels converting to independents, independents to chains, or a mixture? Slide397

Application 10 continued

Based upon data in the HOST Report, here are some possibilities to analyze:

Analyze different types of Revenue for the hotels in your area in addition to Room Revenue. If you have reports for multiple years, how are the various types of Revenue growing?

Analyze different types of Expenses for the hotels in your area. Compare Departmental Expenses, Undistributed Operating Expenses, Payroll Expenses, and Cost of Goods Sold.

How profitable are the hotels in the area you are studying?

In addition to answering these questions, you can also compile your finding and add this to the previous Market Study. Market Studies will usually contain a performance overview, a development update and profitability information.

You can include graphs to visually display the points that you are making. You can move all of this information into PowerPoint to present your findings to others.Slide398

Part 4 -

Destination ReportsSlide399

Introduction to Destination Reports

Destination reports are an important tool for Tourism Organizations.

They can help a CVB track ongoing performance on a monthly or weekly basis.

This is another way that these organizations “keep their finger on the pulse” of their local hotel industry.Slide400

What is a “Comparable” Market?

It is important for CVBs and Tourism organizations to be able to benchmark their performance to similar markets.

Many organizations select a group of comparable markets, similar to the way a hotel selects a comp set. One difference is that the market data is public information.

There are many strategies for selecting comparable markets, but generally these are markets that are similar in size, attractions, types of business, and geography. Urban or resort/beach markets will pick similar cities. Markets in places like Hawaii may select comparables from around the world.Slide401

Multi-Segment Page

Tourism organizations can choose from a variety of different pages (or templates) to include in their Destination Report. The Multi-Segment page is the most popular one.

Allows the user to choose multiple standard industry segments or user-defined groups of hotels.

One page displays Current Month and YTD Occupancy, ADR, and

RevPAR

with Percent Changes for each industry segment.

There is a Raw Data page. There is also a page that displays Running 3-month and Running 12-month numbers.Slide402

Sample Multi-Segment Page from a Destination Report Slide403

Quiz Questions

90) Which is NOT a true statement regarding a Destination Report?

An organization can create a personalized report with data relevant to their needs

The report helps the organization “keep their finger on the pulse” of the local hotel industry

There is a variety of templates that an organization can choose from

Reports are available on a monthly basis, but not weekly

91) What statement is true about a Multi-Segment tab of a Destination Report?

You can select several industry segments and their data will appear

You can select “comparable markets” to track the performance of other cities that you feel you compete with

The tab will display numbers for two different time periods, such as Current Month and YTD

All of the statements above are trueSlide404

Appendix 1 - Additional Ad-Hoc

Reports & Data FilesSlide405

Sample Census Database File

Slide406

State of Tennessee by Market and Tract

State

Market

Tract

CensusProps

CensusRooms

SampleProps

SampleRooms

Tennessee

Chattanooga, TN-GA

Chattanooga

39

4,254

25

3,299

Tennessee

Chattanooga, TN-GA

Chattanooga Area

73

5,406

60

4,637

Tennessee

Knoxville, TN

Gatlinburg/Pigeon Forge

198

18,081

77

7,936

Tennessee

Knoxville, TN

Knoxville

86

8,194

65

6,909

Tennessee

Knoxville, TN

Knoxville TN Area

67

4,348

39

3,109

Tennessee

Memphis, TN-AR-MS

Memphis

37

4,122

20

3,363

Tennessee

Memphis, TN-AR-MS

Memphis Airport & South

82

7,133

48

4,480

Tennessee

Memphis, TN-AR-MS

Memphis East

96

9,283

79

8,065

Tennessee

Memphis, TN-AR-MS

West Memphis

24

1,522

14

1,141

Tennessee

Nashville, TN

Brentwood/Franklin

38

4,596

35

4,434

Tennessee

Nashville, TN

I-24/Murfreesboro

59

5,133

41

3,705

Tennessee

Nashville, TN

Nashville Airport

67

11,183

54

10,054

Tennessee

Nashville, TN

Nashville Downtown

41

7,207

40

7,173

Tennessee

Nashville, TN

Nashville I-65 North

52

4,094

28

2,644

Tennessee

Nashville, TN

Nashville Other Areas

62

4,093

38

2,708

Tennessee

Tennessee Area

Bristol-Kingsport MSA

89

6,639

57

4,931

Tennessee

Tennessee Area

Clarksville MSA, TN

48

3,310

35

2,724

Tennessee

Tennessee Area

Tennessee Central Area

107

5,748

51

3,445

Tennessee

Tennessee Area

Tennessee East Area

149

8,073

71

4,695

Tennessee

Tennessee Area

Tennessee West Area

115

6,123

53

3,473Slide407

Forecast Report – Table of ContentsSlide408

Recent PerformanceSlide409

Steve Hoodshood@str.com615-824-8664, extension 3315

Duane Vinson

dvinson@str.com

615-824-8664, extension 3329

www.str.com