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Application 1 alternative state statistics using prop

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Application 1 Alternative – State Statistics using Prop & Room CountsWorking individually or in groups, select a state or province (preferably the onewhere your hotel is located) and using the property and room count data fileprovided (Hotel Foundations State Exercise) by STR, analyze some basic statisticsabout the hotel industry in your state.You can answer the following questions:1.How does your State compare (by number of hotels and rooms) to neighboringStates?2.What are the Markets in your State?Which of these Markets are metroMarkets (cities) and which are non-metro Markets (rural areas)?How do theMarkets compare (hotels/rooms)?Which Market is your hotel in?3.Pick one Market (preferably the one where your hotel is located) and identifythe Submarkets in your Market?Which Submarket is your hotel in?How do theSubmarkets compare (hotels/rooms)?4.How many hotels are there in your Market by Scale?Which Scale is your hotelin?5.How many hotels are there in your Market by Class?Which Class is your hotelin?6.How many hotels are there in your Market by Chain?How many independents?
© 2019 STR. All Rights Reserved.Application – Sample Results forNashvilleMarkets= bigcitiesandruralareasSub-markets= suburbsand smallcitiesScaleincludesinde-pendentsTopchains inthemarketbynumberof rooms6 Classgroupsand 7Scalegroups
© 2019 STR. All Rights Reserved.Part 4 - Competitive Sets
© 2019 STR. All Rights Reserved.Benchmarking 101: my hotel vs. the competition-20%-10%0%10%20%7%15%Manager AA's CompetitorsYOY Change-20%-10%0%10%20%-3%-10%Manager BB's CompetitorsYOY ChangeTwo managers with Year over Year Change of some performance numberWho gets the bonus?… with and without competitor data
© 2019 STR. All Rights Reserved.Benchmarking and Competitive SetsBenchmarking is relied upon heavily in the hotel industry,taking place at different levels(property, chain, city)The key to benchmarking at the property level is the“competitive set”, also known as the “comp set”.A competitive set is a group of hotels used primarilyforcomparison against a subject property, sharing similarqualitative and quantitative features, aiding sales andmarketing and often used in management contracts.In the past “call arounds” were used by hotel staff.(stories)STR started providing benchmarking information in the 1980’swith several foundations: confidentiality, accuracyandaggregationof data.
© 2019 STR. All Rights Reserved.Comp Sets - When, Who, Why and WhatComp sets can be createdwhena hotel is under constructionand a hotel can receive an “Under Construction" STAR Report.Who decides?-For a chain hotel, the comp set decision is ajoint effort with multiple stakeholders.Whydon’t I just choose a comp set that I can easily beat?”The definition of “beat” is complicated, not just higherOccupancy and ADR, involves relative improvement over time.

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Term
Fall
Professor
NoProfessor
Tags
Hotel chains, hotel industry

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