Hotel Industry Foundations and Introduction for the Philippines
The SHARE Center Supporting Hotel-related Academic Research and
Education
Slide 2
Table of Contents 1.Introduction to the Players in the Hotel
Industry - Affiliations 2.Introduction to Geographic and
Non-geographic Industry Categorizations 3.Introduction to
Benchmarking in the Hotel Industry 4.Introduction to Hotel Math
5.Introduction to Hotel Industry Reports
Slide 3
Note regarding Training Content This PowerPoint contain a large
number of slides. Material that is not critical for the Hotel
Industry Foundations and Introduction certification exam is noted
as optional. An instructor may or may not want to spend time
covering optional content. Some instructors may want to spend
additional time expanding on certain areas. Instructors are free to
personalize the PowerPoint. Contact the SHARE Center if you have
any questions or if we can help in any way.
Slide 4
Note regarding Application Exercises There are Application
Exercises that are suggested at the end of each section. These are
valuable since they offer hands-on experience working with live
hotel data. The raw data that relates to these exercises can be
found in a spreadsheet titled HIFI application exercises that come
with the training program. You can obtain similar raw data that is
relevant to a market or country closer to your university. Contact
the SHARE Center if you have any questions or if we can help in any
way.
Slide 5
Part 1 Introduction to the Players in the Hotel Industry
Affiliations
Slide 6
Multiple Affiliations for a Single Hotel Chain Parent Company
Management Company Owner Asset Management Company - optional
Slide 7
Chain The Chain represents the hotel brand, which is clearly
displayed to the public on the building and in all interactions
with the customer. STR uses Chain and Brand synonymously. There are
hundreds of hotel chains throughout the world. In some cases,
companies organize their hotels by different chains that may not be
obvious to the consumer or traveler, for example: Hampton Inn vs.
Hampton Inn & Suites Holiday Inn vs. Holiday Inn Express Best
Western vs. Best Western Plus and Best Western Premier
Slide 8
Chain continued - optional Hotels have evolved but in many
aspects have remained the same. The first Holiday Inn 1952 The
newest Holiday Inn 2014
Slide 9
As of October 2014 * This is a list of the top chains in a
sample country. STR can provide this information for any country
that you are interested in. Top Chains in the Philippines (by
number of rooms) - optional ChainPropertiesRooms Shangri-La
Hotel42,077 Tune Hotels91,537 Eurotel Hotels9979 Holiday Inn3964
Microtel Inn & Suites by Wyndham13924 Marco Polo3890
Marriott2643 Sofitel Luxury Hotels1609 New World1598 Ascott2582 The
Dusit Thani Group1538 The Peninsula Hotel1493 Days Hotels5479
Millennium Hotels1450 Quest Hotels1427
Slide 10
As of October 2014 Top 25 Chains in Asia Pacific (by number of
rooms) - optional ChainPropertiesRooms 7 Days Inn1,028101,466
JinJiang Inns80399,217 Home Inn82895,858 GreenTree Inns69563,700
Toyoko Inn24246,709 Super 860745,001 Sheraton Hotel10841,943 Crowne
Plaza11637,938 Holiday Inn12435,920 Route Inn21333,477 Shangri-La
Hotel6328,322 Hilton7227,511 Hanting23427,508 Novotel
Hotels10825,925 InterContinental6624,452 Motel 16812123,548 Hotel
ibis12223,266 Vienna Hotel13222,506 Best Western25017,805 Holiday
Inn Express Hotel6115,451 Westin4615,226 Howard Johnson4514,849
Hyatt4514,561 Apa Hotel6614,518 Washington Hotel5414,333
Slide 11
As of October 2014 Top 25 Chains in the World (by number of
rooms) - optional ChainPropertiesRooms Holiday Inn Express
Hotel2,315222,986 Holiday Inn1,184217,497 Hilton557199,076 Best
Western2,779197,319 Marriott494177,438 Super 82,440156,430 Sheraton
Hotel434153,140 Courtyard981144,816 Days Inn1,728134,286 Hotel
ibis1,006126,464 Hampton Inn1,269122,576 Comfort Inn1,582118,234
Quality Inn1,399115,545 Crowne Plaza398111,528 Motel 61,105104,497
7 Days Inn1,028101,466 JinJiang Inns80399,217 DoubleTree39397,585
Home Inn83196,117 Best Western Plus1,04994,802 Ramada72390,371
Mercure Hotels71789,219 La Quinta Inns & Suites85485,425 Hilton
Garden Inn60484,091 Hyatt19481,436
Slide 12
Parent Company Parent companies consist of multiple chains.
Some people may use the term Group as a synonym for Parent Company.
Often the parent company will have a variety of different types of
chains. There are sample tables provided for four parent companies.
A parent company may have a range of high-end, middle, and low-end
chains; or they may concentrate in one area. Parent companies may
have hotels around the world or in specific regions.
Slide 13
As of October 2014 Top Parent Companies in the Philippines (by
number of rooms) - optional ParentCompanyPropertiesRooms Shangri-La
Hotels52,389 Intercontinental Hotels Group51,559 Tune Hotels91,537
Wyndham Worldwide191,517 Ascott Group51,093 Eurotel Hotels9979
Marco Polo Group3890 Marriott International2643 Accor Company1609
New World Hotel Group1598 Carlson Hospitality Company2597 Best
Western Company6591 Dusit Thani Public Company Ltd1538 The
Peninsula Hotel1493 Millennium & Copthorne Global1450
Slide 14
As of October 2014 Top 25 Parent Companies in Asia Pacific (by
number of rooms) - optional Parent CompanyPropertiesRooms Home
Inns971124,107 Jinjiang International Holding963121,858
Intercontinental Hotels Group378115,795 Accor Company558110,750
Wyndham Worldwide868102,525 7 Days Inn1,028101,466 Starwood Hotels
& Resorts28389,969 GreenTree Inns69563,700 Marriott
International16251,956 Toyoko Inn24246,709 Hilton
Worldwide12642,527 Huazhu Hotels Group33540,152 Route Inn21333,477
Shangri-La Hotels7633,185 Hyatt8729,946 Best Western
Company30725,666 Vienna Hotel13222,506 Choice Hotels
International33722,095 Prince Hotels & Resorts4916,797 Carlson
Hospitality Company10015,548 Beijing Capital Tourism Co,
Ltd7515,403 Washington Hotel Corporation5915,391 JAL Hotels
Company4814,814 Apa Hotel6614,518 The Indian Hotel
Company11613,822
Slide 15
As of October 2014 Top 25 Parent Companies in the World (by
number of rooms) - optional Parent CompanyPropertiesRooms Hilton
Worldwide4,214695,009 Marriott International4,017683,083
Intercontinental Hotels Group4,669674,577 Wyndham
Worldwide7,541652,240 Choice Hotels International6,383507,666 Accor
Company3,498462,203 Starwood Hotels & Resorts1,186345,145 Best
Western Company3,982310,162 Carlson Hospitality Company1,090171,582
Hyatt548150,482 Home Inns974124,366 Jinjiang International
Holding*963121,858 G6 Hospitality1,185113,011 7 Days
Inn1,028101,466 Groupe du Louvre*1,17496,425 LQ Management
LLC85485,425 Extended Stay Hotels68476,263 GreenTree Inns69563,700
Grupo Sol Melia19861,238 Whitbread Hotel Company68958,275 Vantage
Hospitality96158,173 N H Hotels37056,857 Toyoko Inn24246,709
Fairmont Hotels11242,063 Riu Hotels & Resorts10541,439
*JinJiang International Holdings is acquiring Groupe du Louvre
Slide 16
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.
Slide 17
Operation: Corporate, Franchise or Independent continued An
independent hotel is not affiliated with a chain or parent company.
Here are the number of properties and rooms in the Philippines and
the world by each Operation Type: Operation Philippines Properties
Philippines Rooms Worldwide Properties Worldwide Rooms
Corporate5414,07423,9754,098,267 Franchise272,70539,0163,971,136
Independent25530,295101,4277,239,761 As of October 2014
Slide 18
Independent Hotels Independent hotels are not affiliated with a
specific chain. They may be managed or owned by companies listed on
preceding pages. There are over 250 independent hotels in the
Philippines in the STR database. There are over 100,000 independent
hotels in the world in the STR database. Independent hotels vary
considerably in size, price level, location, amenities and other
attributes.
Slide 19
Chain Hotels versus Independents in China & WW Percentages
based on Number of Rooms
Slide 20
Management Company A management company operates a hotel for
another party. The company has a management contract where it
receives payment and/or some portion of profits. Some chains or
parent companies manage their own hotels. Management companies may
manage a variety of different chains as well as independent
hotels.
Slide 21
As of October 2014 Philippine Management Companies (by number
of rooms) - optional Management CompanyTotal PropsTotal RoomsChain
PropsChain RoomsIndep. PropsIndep. Rooms Shangri-La Hotels and
Resorts52,389 5 InterContinental Hotels41,2114 Marco Polo38903 New
World Hotels15981 Dusit Hotels & Resorts15381 CHM Hotels1512 1
Fairmont Hotels & Resorts3442 3 Archipelago International14271
Pan Pacific Hotels Group12361 Oakwood Asia Pacific12301 Eclipse
Hotels & Resorts Int`l3213 3 Berjaya Hotels & Resorts12121
The Ascott Group11491 Frasers Hospitality1891 Amanresorts
International Pte Ltd1401
Slide 22
As of October 2014 Management companies with 6,000 rooms or
more; both chain and non-chain managed Top Asia Pacific Management
Companies (by number of rooms) - optional Management CompanyTotal
PropsTotal RoomsChain PropsChain RoomsIndep. PropsIndep. Rooms
Jinjiang Inn Co., Ltd.881105,263 41,115 Starwood Hotels &
Resorts22873,56422873,564 InterContinental
Hotels19763,08019662,8531227 Hilton Managed10735,73110635,633198
Shangri-La Hotels and Resorts7232,0257232,025 Merrylin Holding
Ltd14228,38814027,9072481 Jin Jiang Int'l Hotels Mgmt Co.
Ltd.9423,6256714,257279,368 Vienna Hotel Group13122,04813122,048
BTG-Jianguo Hotels & Resorts5214,1624812,94941,213 JAL Hotels
Company4413,2084413,208 Fujita Kanko Group4210,695277,843152,852
Tokyu Group Hotels & Resorts4210,4154010,1282287 Hankyu Hanshin
Hotels5210,164307,079223,085 Archipelago
International749,886719,5783308 Jinling Hotels369,616359,4371179
CTS HK Metropark Hotels359,255308,6475608 New Century Int`l Hotel
Mgmt289,156237,84351,313 Toga Far East Hotels588,233588,233 Huazhu
Hotels Group567,781567,781 Solare Hotels &
Resorts477,540467,4131127 Frasers Hospitality357,101265,19691,905
Zhejiang Narada Hospitality Service276,973184,30092,673 H N A
Internationl Hotels & Re316,856265,73551,121 Okura Hotels &
Resorts216,686195,7942892 Swiss Belhotel Int'l.436,233436,233
Dorsett Hospitality International206,047195,7621285
Slide 23
Management companies with 10,000 rooms or more; no chain
managed As of October 2014 Top Global Management Companies (by
number of rooms) - optional Management CompanyTotal PropsTotal
RoomsChain PropsChain RoomsIndep. PropsIndep. Rooms MGM
Resorts1948,357 1948,357 Interstate Hotels14742,22211434,723337,499
Caesars Entertainment3341,36122,8613138,500
Crossroads22629,37321827,80481,569 Merrylin Holding
Ltd14228,38814027,9072481 White Lodging16225,97616225,976 Vienna
Hotel Group13122,04813122,048 Pillar Hotels &
Resorts22621,79122521,6421149 Aimbridge
Hospitality10021,2969219,02682,270 Louvre Hotels32621,09632621,096
Highgate Hotels3619,599167,2252012,374 Remington
Hotels8116,0757114,681101,394 Crescent Hotels &
Resorts7115,9566414,00671,950 The Procaccianti
Group5315,1075114,9752132 Westmont Canada12114,53311914,1812352
Hersha Hospitality Management10914,0389612,649131,389 Ocean
Properties, Ltd8113,9186110,639203,279 TMI
Hospitality18413,19818313,147151 GF
Management8512,2857210,368131,917 Sage
Hospitality6512,0936111,3614732 Atlantica Hotel
International8512,0827410,513111,569 Davidson Hotels &
Resorts3911,8913811,837154 Destination4011,12151,214359,907
Columbia Sussex3411,0943411,094 Concord Hospitality7611,0207611,020
TOP International Hotels9410,825839,89911926 Fujita Kanko
Group4210,695277,843152,852 John Q Hammons4310,5454110,0662479
Slide 24
Owner Companies There are many companies that own multiple
hotels. There are six owner companies in the Philippines with 500
rooms or more. There are 46 owner companies worldwide with 10,000
rooms or more. Some chains or parent companies own their own
hotels. Owners may own hotels from a variety of different
chains.
Slide 25
As of October 2014 Philippine Owner Companies (by number of
rooms) - optional Owner CompanyTotal PropsTotal RoomsChain
PropsChain RoomsIndep. PropsIndep. Rooms Shangri-La Hotels and
Resorts52,389 5 Waterfront Philippines, Inc51,328 52,389 Red Planet
Hotels4695 4 New World Hospitality15981 Dusit Hotels &
Resorts15381 The Ascott Group25092 The Peninsula Hotels14931
Berjaya Hotels & Resorts12121 Frasers Hospitality1891
Amanresorts International Pte Ltd1401
Slide 26
As of October 2014 Owners with 3,500 rooms or more; both chain
and non-chain managed Top Asia Pacific Owner Companies (by number
of rooms) - optional Owner CompanyTotal PropsTotal RoomsChain
PropsChain RoomsIndep. PropsIndep. Rooms Shangri-La Hotels and
Resorts6930,8596930,859 Prince Hotels4415,7264415,726 Apa Hotel
Mgtco6513,9736513,973 Hilton2912,7162912,716 Greens Co.,
Ltd7510,917518,365242,552 Las Vegas Sands
Corporation67,97532,22035,755 Solare Hotels &
Resorts507,902497,831171 The Ascott Group417,255386,8633392 Okura
Hotels & Resorts206,366185,4742892 Richmond
Hotels336,345316,0902255 Kintetsu206,029144,83161,198 Pan Pacific
Hotels Group155,697155,697 Tourism Asset Holdings
Limite395,589325,1657424 Kempinski Hotels &
Resorts155,554155,554 Far East Consortium Int`l
Lim195,500185,2151285 Fortress Real Estate (Asia) GK425,426425,426
Accor Australia New Zealand Hospitality394,956374,7822174 Rydges
Hotels & Resorts284,875264,7162159 JR Kyushu324,816314,5221294
Grand Hotels International224,580224,580 Far East
Hotels204,2072640183,567 Erawan Group164,092164,092 New World
Hospitality103,93293,6481284 Centara Hotels &
Resorts153,925153,925 Sunroute Hotel153,894153,894 Regal Hotels
International Limited63,8906 Mori Trust173,75951,909121,850 Oberoi
Hotels & Resorts243,655223,557298 ITC143,615143,615
Slide 27
Owners with 10,000 rooms or more; no chain owners As of October
2014 Top Global Owner Companies (by number of rooms) - optional
Owner CompanyTotal PropsTotal RoomsChain PropsChain RoomsIndep.
PropsIndep. Rooms Host Hotels & Resorts13868,52713668,1492378
MGM Resorts1847,682 1847,682 Hospitality Properties
Trust29143,29329143,293 Caesars Entertainment2938,10822,8612735,247
Archon Hospitality29132,31729132,317 Ashford Hospitality
Trust12829,49012028,22081,270 R L J Lodging Trust14623,16214623,162
Pandox10622,2739820,06982,204 Xenia Hotels &
Resorts9719,6329719,632 Louvre Hotels21616,39521616,395 FelCor
Lodging Trust5215,8114915,1963615 Las Vegas Sands
Corporation915,3929 Fattal Hotels8115,2607112,864102,396 Sunstone
Hotel Investors3014,3002913,24611,054 InnVest
Reit11314,17811213,9381240 Tsogo Sun9114,1578613,5955562 Apa Hotel
Mgtco6513,9736513,973 Fiesta Hotel Company4813,9374713,925112 Moor
Park Capital Partners9813,3489613,2032145 JER
Partners15013,02514912,986139 TMI Hospitality18212,95618112,905151
Summit Hotel Properties9211,7679211,767 Apple REIT
Nine8911,3718911,371 LaSalle Hotel Properties4611,140277,292193,848
DiamondRock Hospitality Comp2711,1002610,9941106 Grand City Hotels
& Resorts8611,052719,587151,465 The Ascott
Group7110,9766710,3544622 Greens Co., Ltd7510,917518,365242,552
Atrium4410,8944210,4152479 Grupo de Turismo Gaviota
SA2810,36585,551204,814 Highgate Hotels1410,02783,55066,477
Slide 28
Owned by Felcor and Managed by Aimbridge Hospitality Hilton
Worldwide owned and managed Owned and managed by Archon
Hospitality
Slide 29
Asset Management Company - optional An Asset Management Company
represents the owner in the operation of a hotel. A hotel may have
both a Management Company and an Asset Management Company.
Slide 30
New Quasi Chains or Soft Brands - optional In recent years,
several new chains have come into existence that some would say are
really a cross between a chain and a marketing group for
independent hotels. These chains have been created to be able to
bring hotels under a Parent Company flag. The hotels can take
advantage of the benefits available from the Parent Company. The
following chains might be considered to be examples of this new
phenomenon: Autograph by Marriott Luxury Collection by Starwood
Andaz by Hyatt Ascend by Choice
Slide 31
Quiz Questions 1) Most of the entities below are classified as
Chains. Which one is a Parent Company consisting of multiple
chains? A.Hampton Inn B.Courtyard C.Starwood Hotels & Resorts
D.Holiday Inn Express 2) Which is a true statement about Parent
Companies? A.Parent Companies and the related chains have changed
over time B.Parent Companies must consist of no more than five
chains C.Parent Companies can only consist of chains in a single
Scale D.Parent Companies can only have hotels in a single country
3) What are the three different operation types? A.Corporate,
Managed, Independent B.Managed, Franchise, Independent C.Managed,
Clustered, Independent D.Corporate, Franchise, Independent
Slide 32
Quiz Questions continued 4) Which is a true statement about
independent hotels? A.Independent hotels are not affiliated with a
specific chain B.Chain hotels outnumber independent hotels in every
country of the world C.Independent hotels are mostly Luxury Class
hotels in Urban Locations with more than 150 rooms D.Independent
hotels may never be managed by an outside entity 5) Which is a true
statement about Management Companies? A.Management companies have
contracts where they receive payment for their services and/or some
portion of profits B.Management companies may manage only one chain
C.Management companies will always own the hotels they manage
D.Management companies serve the exact same role as asset
management companies
Slide 33
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.
Slide 34
Application 1 Different types of players? 1.Find a recent
article about a hotel company. (You can check HotelNewsNow.com or
another hotel-related electronic news service or the internet.)
2.What type of hotel industry player is the company that you have
chosen (chain, parent company, management company, owner or asset
management company)? 3.Find other articles about other companies.
Try to find different types of players. 4.Are there companies or
organizations that you find that are not one of the five major
types of affiliations?
Slide 35
Application 2 More about the players? 1.Select a specific hotel
industry player (chain, parent company, management company, owner
or asset management company) or another player in the hotel
industry (association, tourism organization, developer, consultant,
Wall Street firm). 2.What can you find about the current goals,
company philosophy, number of hotels, number of staff, corporate
locations and history of this organization. 3.See if you can find
articles (HotelNewsNow.com or similar) with quotes from company
representatives. 4.See if you can find out anything about the
potential career- related opportunities that this company might
offer.
Slide 36
Application 3 Chain versus independent hotels in countries
around the world 1.Select a specific country somewhere in the
world. 2.Obtain the STR Property and Room Count data for your
country (by Chain and Parent Company). 3.Determine the number of
Chain versus Independent hotels in your country and calculate the
percentages based upon number of rooms. 4.Determine the top chains
in your country by number of rooms. 5. Determine the top parent
companies in your country.
Slide 37
Part 2 Introduction to Geographic and Non-geographic Industry
Categorizations
Slide 38
Major Geographic Categories The major geographic categories
are: World Continent Sub-Continent Country Market Submarket or
Tract
Slide 39
Continents and Sub-Continents STR defines these related to the
hotel industry. (Little different from the traditional seven
continents.) There are 4 continents: Americas, Asia Pacific, Europe
and Mideast/Africa. Each continent includes three to four
sub-continents. The STR definitions roughly correspond to the UNWTO
definitions when it comes to which countries are included in each
continent and sub-continent.
Slide 40
CaribbeanCentral America AnguillaBelize Antigua &
BarbudaCosta Rica ArubaEl Salvador BahamasGuatemala
BarbadosHonduras BermudaNicaragua British Virgin IslandsPanama
Cayman Islands CubaNorth America DominicaCanada Dominican
RepublicMexico GrenadaGreenland GuadeloupeUnited States Haiti
JamaicaSouth America MartiniqueArgentina MontserratBolivia
Netherlands AntillesBrazil Puerto RicoChile St. Kitts &
NevisColombia St. LuciaEcuador St. VincentFalkland Islands Trinidad
& TobagoFrench Guiana Turks & CaicosGuyana US Virgin
IslandsParaguay Peru Suriname Uruguay Venezuela Americas optional*
* Countries and subcontinents provided for general perspective (no
need to memorize)
Slide 41
Central & South AsiaAustralia & Oceania
BangladeshAmerican Samoa BhutanAustralia IndiaCook Islands
MaldivesFiji NepalFrench Polynesia PakistanGuam Sri LankaKiribati
Marshall Islands Northeastern AsiaMicronesia ChinaNauru JapanNew
Caledonia North KoreaNew Zealand South KoreaNiue MongoliaNorthern
Mariana Islands TaiwanPalau Papua New Guinea Southeastern AsiaSamoa
BruneiSolomon Islands CambodiaTonga East TimorTuvalu
IndonesiaVanuatu Laos Malaysia Myanmar Philippines Singapore
Thailand Vietnam Asia Pacific - optional
Slide 42
Eastern EuropeSouthern EuropeWestern Europe
ArmeniaAlbaniaAustria AzerbaijanAndorraBelgium BelarusBosnia and
HerzegovinaFrance BulgariaCroatiaGermany Czech
RepublicCyprusLiechtenstein GeorgiaGibraltarLuxembourg
HungaryGreeceMonaco KazakhstanItalyNetherlands
KyrgyzstanIsraelSwitzerland PolandMacedonia MoldovaMalta
RomaniaMontenegro RussiaPortugal SlovakiaSan Marino
TajikistanSerbia TurkmenistanSlovenia UkraineSpain UzbekistanTurkey
Northern Europe Denmark Estonia Finland Iceland Ireland Latvia
Lithuania Norway Sweden United Kingdom Europe - optional Note that
Israel is in Southern Europe.
Slide 43
Middle EastSouthern Africa (cont.) AfghanistanCape Verde
BahrainCentral African Republic IranComoros IraqCongo JordanCote
d'Ivoire KuwaitDemocratic Rep. of Congo LebanonEquatorial Guinea
OmanEthiopia QatarGabon Saudi ArabiaGambia SyriaGhana UAEGuinea
YemenGuinea-Bissau Kenya Northern AfricaLesotho AlgeriaLiberia
Burkina FasoMadagascar ChadMalawi DjiboutiMauritius EgyptMozambique
EritreaNamibia LibyaNigeria MaliReunion MoroccoRwanda MauritaniaSao
Tome and Principe NigerSenegal SudanSeychelles TunisiaSierra Leone
Somalia Southern AfricaSouth Africa AngolaSwaziland BeninTanzania
BotswanaTogo BurundiUganda CameroonZambia Zimbabwe Mideast Africa -
optional
Slide 44
A complete list of countries with prop & room counts is
available. As of October 2014 Global Hotels by Continent and
Sub-Continent - optional ContinentSub-ContinentPropertiesRooms
AmericasCaribbean1,861222,580 Central America91357,340 North
America64,2855,747,254 South America3,435360,278 Asia
PacificAustralia & Oceania5,224312,230 Central & South
Asia3,722251,057 Northeastern Asia14,6802,498,819 Southeastern
Asia5,389680,157 EuropeEastern Europe4,662423,187 Northern
Europe12,510870,004 Southern Europe18,1131,713,345 Western
Europe24,2671,432,590 Middle East & AfricaMiddle
East1,471253,797 Northern Africa1,458303,321 Southern
Africa2,428183,205 TOTAL WORLD 164,41815,309,164
Slide 45
Countries STR uses the UNWTO definition when it comes to
recognizing countries. There are over 200 countries with one or
more hotels. There are over 40 countries with 50,000 rooms or
more.
Slide 46
Room Revenue 12 Month Ending October 2014 Top Countries in the
World (by number of rooms) - optional CountryPropertiesRoomsRoom
Revenue United States53,2424,964,356$130,699,814,694
China11,0831,859,380$40,874,743,247
Germany9,592586,946$18,724,960,459 Spain4,728585,049$17,683,105,944
United Kingdom8,405531,520$20,413,638,941
Japan2,997526,337$19,160,859,919 France7,699472,173$26,016,960,319
Canada7,613434,789$11,769,676,152 Italy6,677376,530$14,627,587,117
Mexico3,426347,819$9,613,668,025 Turkey1,566246,720$7,956,809,141
Australia4,143244,407$10,964,803,968
India3,323214,360$4,213,187,677 Indonesia2,345211,324$4,336,893,978
Brazil1,622210,485$6,237,500,726 Greece1,922170,993$5,559,845,325
Thailand1,118170,271$4,434,514,519 Egypt609158,907$1,840,957,573
Malaysia552121,148$3,420,950,261 Portugal1,368115,766$2,954,360,956
United Arab Emirates551110,102$6,144,195,588
Netherlands1,987107,781$3,691,155,187
Switzerland2,382106,580$6,415,099,380
Russia707102,830$2,740,010,122
Austria1,685101,683$3,364,213,464
Slide 47
Markets Market is one of the most important geographic
categories below Country, especially for a hotel General Manager.
Markets are created based upon the number of hotels in an area and
the participation. Markets are commonly thought of as cities (metro
markets), although they are also used to represent more rural areas
outside of the major cities (non-metro markets). In some countries,
there may be a large number of markets. In other countries,
especially developing areas, there may be just a small number of
markets.
Slide 48
Sample Markets in the U.S. State of Tennessee (the logic is
similar everywhere in the world) For example, in the state of
Tennessee, there are four metro markets: Memphis Nashville
Knoxville Chattanooga And one non-metro market for everywhere else
Tennessee Area.
Slide 49
Worldwide Markets Countries contain varying numbers of markets.
Markets are based upon the number of hotels and the participation.
Smaller countries may consist of just a single market. Countries
that are slightly larger may consist of a market for the major city
and then a second market for all of the other hotels, named
something like Country Name Area. Countries that are larger may
consist of markets for several major cities and then an additional
market for all other hotels. Larger countries will have many
markets. Countries like the U.S. have over one hundred. No market
will ever cross country boundaries.
Slide 50
Examples of Markets in Select Countries - optional Canada*
United Kingdom China Atlantic Provinces Greater London Beijing
Montreal Southeast England Shanghai Quebec Southwest England North
China excluding Tianjin Toronto East England East China excluding
Hangzhou Ontario East East Midlands Northeast China Ontario
Southwest West Midlands South Central China Ontario North Northwest
England Hong Kong SAR Ontario Central Yorkshire & Humberside
Western China Saskatchewan/Manitoba Northeast England Hainan
Alberta Scotland Hangzhou Vancouver Wales Shenzhen British Columbia
Other Northern Ireland Tianjin Northern Canada Henan Guangzhou
Sanya *Aligned with Statistics Canada
* Participation refers to hotels that submit performance data
to STR, based upon number of rooms. This varies on a market-by-
market basis. As of October 2014 Top 35 WW Metro Markets (based on
number of rooms) - optional MarketPropertiesRoomsParticipation*
Beijing, China1,275219,18837% Shanghai, China1,246212,96937% Las
Vegas, USA379171,06516% London, United Kingdom1,322123,00768%
Orlando, USA481121,18762% New York, USA623112,81685% Chicago,
USA729109,74389% Washington DC, USA691107,16195% Tokyo,
Japan44899,14741% Los Angeles/Long Beach, USA99297,86377% Atlanta,
USA79093,91183% Guangzhou, China47682,27026% Dallas,
USA62678,69581% Houston, USA78676,10681% Bangkok,
Thailand34675,00545% Dubai, United Arab Emirates35170,34372% Paris,
France1,04767,38422% Shenzhen, China36567,08335% Hong Kong,
China20765,27252% Berlin, Germany63664,27355% Sao Paulo,
Brazil43761,60642% Phoenix, USA44561,16887% San Diego,
USA47359,64585% Hangzhou, China36558,44730% Singapore,
Singapore25157,16864% Anaheim/Santa Ana, USA43254,75380% San
Francisco/San Mateo, USA39651,42184% Boston, USA35551,11592%
Miami/Hialeah, USA38249,08680% Barcelona, Spain52148,67540% Quebec,
Canada1,19848,34622% Madrid, Spain39148,23149% Philadelphia,
USA38146,27289% Jakarta, Indonesia27246,02640% Tampa/St Petersburg,
USA45245,03575%
Slide 56
Submarket or Tract A Submarket is a geographic subset of a
Market. The term Submarket is used outside of North America, while
the term Tract is used in North America. Submarkets, like Markets
are affected by hotel participation. They are reviewed annually to
determine if new submarkets may be created based on growth in
available supply and sample. The Submarket category, like the
Market category is very important, especially for hotel GMs. Hotel
data is often displayed at the Market and Submarket level.
Slide 57
Submarkets More Info Submarkets are geographic sub-divisions of
a market. There may be anywhere from two to ten or more submarkets
in a market. In a metro market, there is usually a submarket for
the CBD (Central Business District). There may be other submarkets
in a city identified such as North/South/East/West, or
Airport/Beach, or they may have names for suburban neighborhoods.
In non-metro (rural) markets, a submarket may represent a small
city.
Slide 58
Sample Submarkets in the State of Tennessee (logic similar
everywhere) In the state of Tennessee here are the Submarkets in
each Market: Memphis: Memphis CBD, Memphis Airport/South, Memphis
East, Memphis West (4) Nashville: Nashville CBD, Nashville Airport,
Nashville I-65 North, I-24/Murfreesboro, Brentwood/Franklin,
Nashville Other Areas (6) Knoxville: Knoxville, Knoxville Area,
Gatlinburg/Pigeon Forge (3) Chattanooga: Chattanooga, Chattanooga
Area (2) Tennessee Area: Bristol/Kingsport, Clarksville, East,
Central, West Area (5)
Slide 59
*Note the average ADR differences. **ADR and Room Revenue in
Pesos Occ, ADR & Room Revenue - 12 Month Ending October 2014
Philippine Submarkets (sample country)
SubmarketPropertiesRoomsOccupancyADR*Room Revenue** Regional
Philippines14011,68662.5%5,407.6014,263,151,377
Manila13126,34267.2%5,578.6035,606,721,861 Cebu
Metro598,72767.6%4,923.2010,600,091,057
Slide 60
Revisions to Markets and Submarkets STR makes small revisions
to markets and submarkets on a regular basis. The changes are based
upon: Supply (new hotels opening) Participation (new hotels
submitting performance data) Client feedback Most revisions are
made at the end of the year, after December STAR Reports and before
January STAR Reports. A smaller amount of changes, related to
increased participation, are made in July at the half year point.
Companies are notified of these changes.
Slide 61
Non-Geographic Categories In addition to geographic categories
such as Market and Submarket, the hotel industry uses additional
categorizations that are not related to geography. The two most
important non-geographic categories for someone like a general
manager are: Scale Class
Slide 62
Scale The Scale category is one of the most popular ways the
industry looks at different hotels. There are seven Scale
categories, six for chain hotels ranging from Luxury to Economy,
and one Scale category for all Independent hotels. Check the
average ADRs of the different scale groups on the next two slides.
Note that in the Philippines they will range from Luxury (with an
average over 7,400 pesos) down to Economy (with an average close to
3,000 pesos). The average ADR of the Independent Scale group
(independent hotels) in the Philippines is close to 5,600
pesos.
Slide 63
*Note the average ADR differences. **ADR and Room Revenue in
Pesos Occ, ADR & Room Revenue - 12 Month Ending October 2014
Philippine Scales (sample country)
ScalePropertiesRoomsOccupancyADR*Room Revenue** Luxury
Chains124,20568.7%7,846.508,989,231,159 Upper Upscale
Chains92,95771.8%5,371.404,161,149,261 Upscale
Chains82,66964.9%5,211.303,154,922,270 Upper Midscale
Chains152,87666.5%3,598.002,385,049,692 Midscale
Chains141,39159.7%2,120.00646,263,492 Economy
Chains222,46167.1%2,934.901,528,924,173
Independents25030,19666.6%5,586.1040,674,245,267
Slide 64
Global Scales ScalePropertiesRoomsOccupancyADR**Room Revenue**
Luxury Chains1,891497,81666.5%$282.10$33.6B Upper Upscale
Chains4,8431,312,51470.1%$165.01$54.9B Upscale
Chains10,8931,821,84669.9%$124.24$56.8B Upper Midscale
Chains14,7051,680,23066.0%$101.80$40.7B Midscale
Chains11,5501,105,05660.9%$78.75$19.3B Economy
Chains19,0271,642,38162.2%$56.05$20.7B
Independents100,9247,216,15761.5%$123.93$19.9B Occ, ADR & Room
Revenue - 12 Month Ending October 2014 **ADR and Room Revenue is in
US dollars
Slide 65
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.
Slide 66
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.
Slide 67
Which Chains are currently in which Scale groups? There are
lists that follow that show which Chains are in which Scale groups.
It is possible to obtain a similar list for a specific country or
another area of the world. It is important to have a general
perspective of which chains are in which Scale groups. No need to
memorize.
Slide 68
Global Luxury Chains (with 25 or more properties sorted by room
count) optional ChainPropertiesRooms InterContinental17860,191
Shangri-La Hotel7029,281 Sofitel Luxury Hotels11428,248
Fairmont6928,010 JW Marriott6527,785 Ritz-Carlton8524,882 Grand
Hyatt4122,202 Four Seasons9220,098 Kempinski Hotels7319,918 Luxury
Collection8516,793 W Hotel4512,996 Conrad268,381 Mandarin Oriental
Hotel Group288,162 Daiwa Royal Hotels267,013 St Regis306,584 Park
Hyatt336,567 Taj Group415,863 Hipotels275,282 Anantara313,590
Orient Express313,202 Amanresorts International Pte Ltd26815 As of
Year-End 2013
Slide 69
Global Upper Upscale Chains (with 25 or more properties sorted
by room count) - optional ChainPropertiesRooms ChainPropertiesRooms
Hilton554195,410 Kimpton5910,966 Marriott488174,764 Delta
Hotels3910,119 Sheraton Hotel435153,911 Steigenberger Hotels499,227
Hyatt19081,226 Sonesta Hotel348,305 Westin19876,279 Rotana277,428
Radisson Blu26060,910 Pestana466,838 Renaissance15451,950 Frasers
Hospitality436,823 Embassy Suites21551,707 Southern Sun - Sun
Hotels346,409 Wyndham Hotels9927,923 MGallery Hotel
Collection515,311 Le Meridien9827,152 Sun International284,832
Pullman8023,653 Exclusive Hotels1204,613 Omni5020,192 Hoteis
Othon304,340 Millennium Hotels4816,483 Joie De Vivre273,883 Hotel
Nikko3913,537 Vivanta by Taj283,844 Autograph Collection5411,320
Marriott Executive Apartments263,641 Swissotel3011,285 Serena
Hotels332,846
Slide 70
Global Upscale Chains (with 25 or more properties sorted by
room count) optional ChainPropertiesRooms ChainPropertiesRooms
Courtyard953140,537 AC Hotels by Marriott778,656 Crowne
Plaza389108,367 Quest Serviced Apartments1558,616
DoubleTree36692,447 Hyatt House588,155 Mercure Hotels69686,311 Park
Plaza388,149 Hilton Garden Inn58179,878 Hotel Husa748,033 Residence
Inn65279,243 Dorint Hotels & Resorts417,323 Novotel
Hotels40876,891 Grand Mercure417,222 N H Hotels32149,436 Copthorne
Hotels347,072 RIU Hotel10040,355 Eurostars Hotel646,798 Homewood
Suites33336,778 Hesperia Hoteles416,533 Springhill Suites30836,172
Thistle Hotels336,475 Radisson16834,867 First506,219 Disney
Hotels3032,863 Hotel Indigo556,200 Four Points18032,519
Swiss-Belhotel International436,115 Scandic Hotel15029,099
Paradores925,934 Melia8828,179 Oaks Hotels & Resorts435,899
Iberostar Hotels & Resorts8427,852 Austria Trend Hotels &
Resorts295,132 Hyatt Place19225,572 Silken Hoteles334,874
Staybridge Suites19621,518 Outrigger264,863 Club Med7221,407
Lindner Hotels, Inc314,774 Moevenpick7318,948 Clarion
Collection454,226 Best Western Premier15918,488 Macdonald
Hotels443,852 Prince Hotels4515,902 Coast Hotels & Resorts
Canada273,530 Maritim4914,906 Hampshire513,130 aloft Hotels7913,425
abba253,032 Apa Hotel6113,308 Adina272,930 BTG-Jianguo Hotels &
Resorts4512,390 OREA Hotel292,775 Ascend Collection11811,283
Hoteles Estelar252,335 Rica Hotels7911,092 Peppers Hotels282,163
Jin Jiang Hotel3911,092 Three Cities Hotel Group352,117 H10
Hotels3810,902 Oxford Hotels & Inns341,651 Thon Hotels649,854
EuroAgentur Hotel381,537 Jinling379,713 Hampshire Classic25957
Sokos Hotel499,278 As of Year-End 2013
Slide 71
Global Upper Midscale Chains (with 25 or more properties sorted
by room count) - optional ChainPropertiesRooms ChainPropertiesRooms
Holiday Inn1,188217,910 Wyndham Garden Hotel618,550 Holiday Inn
Express Hotel2,256214,246Iberotel Hotels278,047 Comfort
Inn1,619121,672Tulip Inn Hotel857,905 Hampton Inn1,254120,159
Citadines597,551 Best Western Plus1,116100,164 Jurys Inns327,530
Hampton Inn & Suites68470,583 City Express637,336 Fairfield
Inn71065,107 Mantra547,314 Comfort Suites60647,515 Somerset
Hotels407,211 Clarion27840,661 Ringhotels1226,923 Country Inn &
Suites47538,220 Adagio City Aparthotel586,832 Park Inn13024,771
Rydges Hotels & Resorts366,742 Golden Tulip17324,149 Sandman
Hotels & Inns436,417 Ramada Plaza10123,993 Richmond
Hotels316,090 Quality21223,569 G S M Hoteles375,227 Barcelo
Hotels7022,818 TOP International Hotel434,906 TownePlace
Suites22422,182 FX Hotels Group394,722 Comfort20520,167
Hunguest254,274 Tryp by Wyndham10915,299 Xanterra Parks &
Resorts254,188 Washington Hotel5414,333 Lexington293,542 Drury Inn
& Suites7411,445 Cumulus273,537 Days Hotels6810,968 TOP City
& CountryLine323,464 Sunroute6610,329 Village Urban
Resorts253,103 Van der Valk Hotels779,965 Home2 Suites by
Hilton272,928 Protea Hotel1099,658 Bastion Hotels312,855 Leonardo
Hotels508,691 Sweden Hotels572,589 As of Year-End 2013
Slide 72
Global Midscale Chains (with 25 or more properties sorted by
room count) - optional ChainPropertiesRooms ChainPropertiesRooms
Best Western2,783198,068 Catalonia507,541 Hotel ibis970120,801Dormy
Inn437,064 Quality Inn1,364113,730 InterCityHotel356,049
Ramada72889,795 Aston International385,982 La Quinta Inns &
Suites83383,612 Grupotel345,435 Howard Johnson24229,858 Villages
Hotel634,729 Candlewood Suites31129,695 Sercotel Hotels574,467
Sleep Inn39428,815 Shilo Inn353,809 Baymont Inn &
Suites33027,216 TREFF Hotels413,738 Campanile Hotel39225,891
MainStay Suites453,549 Sol6422,173 Chisun Inn313,541 Vienna
Hotel10417,898 Vagabond Inn402,905 ibis styles16816,159 Kibbutz
Hotels322,861 Wingate by Wyndham16014,643 ACHAT Hotels262,807
Kyriad22412,923 Fletcher Hotels602,725 AmericInn20111,725 Oak Tree
Inn302,210 Super Hotel9911,307 BreakFree Resort261,930 Red
Lion539,220 Sarovar Portico291,877 Hawthorn Suites by
Wyndham929,205 P`tit Dej Hotel371,397 Fiesta Inn598,527
WelcomHeritage38916 Daiwa Roynet Hotels367,935 As of Year-End
2013
Slide 73
Global Economy Chains (with 25 or more properties sorted by
room count) optional ChainPropertiesRooms ChainPropertiesRooms
Super 82,352150,181 B&B Hotels17813,910 Days
Inn1,761137,385Motel One4610,245 Motel 61,081102,589 Best
Hotels449,070 Home Inn81092,944 Studio 6768,187 JinJiang
Inns71889,877 Suburban Extended Stay Hotels657,327 Extended Stay
America64070,595 Balladins1307,284 Premier Inn67755,872 JI
Hotels547,243 Econo Lodge91754,773 Red Carpet Inns1206,472 Americas
Best Value Inn88852,557 Budget Host1525,811 Toyoko Inn24146,622
Crossland Suites435,584 7 Days Inn40642,749 America`s Best
Inns945,536 ibis budget43241,231 GuestHouse Inns695,356 Travelodge,
UK51038,177 Tune Hotels335,152 Red Roof Inn36037,080 Bestay Hotel
Express694,938 Travelodge43532,503 Hotel Formule 1654,900
Hanting22726,720 Country Hearth Inn754,802 Rodeway Inn44325,221
Scottish Inns1164,461 Knights Inn38623,640 Starway313,408 Motel
16812023,536 Sun Suites Hotels253,254 Microtel Inn & Suites by
Wyndham31322,379 Ginger Hotels292,812 Value Place18522,093 Shindom
Inn262,344 GreenTree Inns17218,611 Old English Inn561,510 InTown
Suites13817,974 Hotel Climat291,424 Hotel F123817,898 National
925973 Hotel Premiere Classe25217,748 Innkeeper`s Lodge44741 Howard
Johnson Express21216,095 Good Night Inns32721 As of Year-End
2013
Slide 74
The Class Category The Class category is similar to Scale. The
names of the categories are the same, but there is no Independent
Class group. So there is only 6 Class categories, instead of the 7
Scale groups. Independent hotels are slotted into the Scale
categories (Luxury through Economy) at similar ADR levels. Chain
hotels are always in the same Class as Scale. So the Ritz-Carlton
from before will always be in the Luxury Class group since it is in
the Luxury Scale group. Class is used globally, but is especially
popular outside of North America where there are more independent
hotels.
Slide 75
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.
Slide 76
How Independent Hotels are Slotted by Class Acme Hotel 2014
Annual ADR 5,550 PHP Luxury Chains Annual 2013 ADR Range
6,660-9,324 PHP Upper Upscale Chains Annual 2013 ADR Range
4,884-6,659 PHP Upscale Chains Annual 2013 ADR Range 3,996-4,883
PHP Upper Midscale Chains Annual 2013 ADR Range 2,886-3,995 PHP
Midscale Chains Annual 2013 ADR Range 2,220-2,885 PHP Economy
Chains Annual 2013 ADR Range 1,332-2,219 PHP Market Because the
hotels rate falls within the Upper Upscale rate range of 4,884 to
6,659 they are slotted as Upper Upscale Class Independent
Hotel
Slide 77
Importance of the Class Category Class is relied upon heavily,
especially outside North America. Non-North American STAR reports
compare a subject hotel to the Market or Submarket/Tract Class, in
addition to the competitive set. Depending upon participation, the
Class groups may be Collapsed or combined as follows: Luxury and
Upper Upscale, Upscale and Upper Midscale, or Midscale and Economy.
North American STAR reports compare the subject hotel to the Market
Class (all the hotels in the same Market and Class) along with
other industry segments.
Slide 78
Philippine Hotels by Class ClassPropertiesRoomsOccupancyADR**
Room Revenue** Luxury Class347,75367.8%7,382.5014.8B Upper Upscale
Class 365,91171.7%5,234.708.1B Upscale
Class286,67566.4%4,986.807.9B Upper Midscale Class
9713,59661.2%3,551.3010.7B Midscale Class646,29159.7%2,119.902.9B
Economy Class716,52967.3%2,939.304.4B Occ, ADR and Room Revenue 12
Month Ending October 2014 **ADR and Room Revenue is in Pesos
Slide 79
Global Hotels by Class ClassPropertiesRoomsOccupancyADR** Room
Revenue** Luxury Class6,062942,42366.4%$277.98$62.7B Upper Upscale
Class 12,2492,062,17769.4%$165.44$85.4B Upscale
Class23,6503,012,88669.0%$125.08$93.9B Upper Midscale Class
29,1332,964,59965.5%$102.18$71.6B Midscale
Class32,2912,2672,11760.8%$83.07$48.9B Economy
Class60,4483,621,79860.3%$60.95$48.2B Occ, ADR and Room Revenue 12
Month Ending October 2014 **ADR and Room Revenue is in US
dollars
Slide 80
Additional Non-geographic Categories - optional In addition to
the Scale and Class, STR tracks several other non-geographic
categories, including: Location Extended Stay Boutique very popular
recently Destination Resort Additional Hotel Types such as All
Inclusive, All Suite, B&B/Inn, Condo, Conference, Convention,
Corporate Housing, and Timeshare Hotel Ratings generally
inconsistent in most parts of the world
Slide 81
Quiz Questions 6) Which is a true statement regarding
geographic categorization? A.STR geographic categories are limited
to North America B.STR uses the UNWTO definitions when it comes to
recognizing countries C.General managers of hotels do not need to
know geographic categories D.The hotel industry uses seven
continents to categorize hotels 7) Which is a true statement
regarding markets? A.Markets include hotels that are in big cities,
not rural areas B.A country would never have more than 100 markets
and never have less than 2 markets C.No market will ever cross
country boundaries D.There is another name for Markets outside the
U.S. 8) In descending order of geographic size, which option below
is correct? A.Continent, Sub-Continent, Country, Submarket, Market
B.Continent, Country, Sub-Continent, Submarket, Market C.Continent,
Sub-Continent, Market, Country, Submarket D.Continent,
Sub-Continent, Country, Market, Submarket
Slide 82
Quiz Questions continued 9) Which two geographic categories are
the most important for a hotel GM? A.Region and Market B.Market and
Submarket C.Region and Submarket D.Country and Submarket 10)
Markets and tracts are created based on what two determining
factors? A.Geographic size and population B.Geographic size and
participation C.Number of hotels and participation D.Number of
hotels and population 11) Which is a true statement regarding
Tracts A.Tracts are referred to as Submarkets outside of North
America B.Tracts are never used to represent a small city in a
rural market C.Tracts are geographic sub-divisions of a Region D.A
country will never have more than 100 Tracts
Slide 83
Quiz Questions continued 12) Changes to how Markets and
Submarkets are geographically defined are made how often? A.Monthly
B.Annually C.Every five years D.No regular schedule 13) Which two
non-geographic categories are the most important for a hotel GM?
A.Scale and Class B.Scale and Location C.Location and Type D.Class
and Type 14) How many Scale categories are there compared to Class
categories? A.6 Scale categories and 6 Class categories B.6 Scale
categories and 7 Class categories C.7 Scale categories and 6 Class
categories D.7 Scale categories and 7 Class categories
Slide 84
Quiz Questions continued 15) Which one of the following is an
accurate statement regarding Scale and Class groups and a single
chain? A.A Ritz Carlton hotel in the US can be in one Scale group
and a Ritz Carlton hotel in Japan can be in a different Scale group
B.A Ritz Carlton hotel in the US can be in one Class group and a
Ritz Carlton hotel in Japan can be in a different Class group C.A
Ritz Carlton hotel will always be in the same Scale and Class
groups in every country throughout the world D.Ritz Carlton may
choose which Scale and which Class they are in 16) Which one of the
following is an accurate statement regarding Class groups? A.The
names of the Class group are very different than the names of the
Scale groups B.Class groups are more popular and relevant in North
America rather than outside North America C.Independent hotels are
slotted into Class groups based upon the ADR of the independent
hotel compared to the chain hotels in the same market D.Once an
independent hotel is slotted into a Class group, it will never
change
Slide 85
Application 4 Categories for a Hotel 1.Obtain the STR Hotel
Census Database for your country (or state). Contact the STR SHARE
Center for assistance. 2.Select a specific hotel and then determine
all of the various categories for your hotel (geographic and
non-geographic groups). 3.What are the major geographic categories:
continent, subcontinent, country, market, and tract/submarket? What
additional categories (region or state/province if applicable)?
4.What are the non-geographic categories: scale, class? What is the
location category? Is the property any special type of hotel
(boutique, extended stay, destination resort)? Does the hotel offer
any special amenities? 5.What else can you tell about the hotel
from the Census database?
Slide 86
Application 5 Categories for a Market, starting a Market Study
1.When industry professionals conduct a market study, the goal is
to learn about the hotel industry in a particular area, such as a
country or city (or state). 2.An important part of a good market
study is size and structure information about the market related to
the various geographic and non-geographic categories. 3.Select a
specific area such as a country or city. 4.Obtain Property and Room
Count data for your area to help drill down into all of the various
categories below the area that you choose. You can obtain this data
from STR for any area of the world.
Slide 87
Application 5 Market Study continued 5.Identify the markets and
tracts/submarkets within the area that you have selected. How many
hotels are in each geographic category? 6.Determine the number of
hotels in each Scale and Class Category. You can also do this for
Chain, Location, and Extended Stay group. 7.You could check the
Census database for your area and determine if there are any
special type hotels (Boutique, Destination Resorts, Conference, )
8.Summarize this information. What observations can you make about
the area that you are studying?
Slide 88
Application 5 Market Study, Next Step 9.The Market Study that
you started in this application contained size and structure
information about your area. Keep this so that you can add more
data to it at the end of the training. 10.Later you will learn
about various industry reports that contain different types of data
related to an area. 11.For example you can obtain a Trend Report
for your area, that contains performance information (such as
Year-to-Date or Annual Occupancy and ADR). 12.This type of data can
be included in a market study to show how various hotels in your
area are performing. More information will be provided at the end
of the training.
Slide 89
Part 3 Introduction to Benchmarking in the Hotel Industry
Slide 90
Intro to Benchmarking in the Hotel Industry What is
benchmarking? Levels of benchmarking: Property, Corporate and
Tourism organizations Competitive set key questions: What, Why, Who
and When Creating Comp Sets the Four Ps Rules for Comp Sets
Changing Comp Sets Additional comp sets
Slide 91
Benchmarking 101: my hotel vs. the competition
Slide 92
Benchmarking in the Hotel Industry Individual hotels compare
their performance to the performance of a competitive set of
hotels. Individual hotels can also compare their performance to
hotels in pre-defined industry segments near their hotel, for
example the market or submarket where they are located. Companies
compare their own properties to a variety of comparative groups of
hotels to gauge the performance of their portfolio. Tourism
organizations also compare their local area to comparable
markets.
Slide 93
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.
Slide 94
Slide 95
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
Slide 96
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.
Slide 97
Why Comp Sets? - continued In the late 1980s, STR began
collecting performance data from hotels and coined the term comp
set within the hotel industry. STR essentially became a reliable
place for hotels to get accurate aggregate information about their
set of competitors. Aggregating means finding the averages based on
the data from a group of hotels so that each individual hotel is
protected from exploitation of their specific data. No individual
property data is ever disclosed to another property.
Slide 98
Who chooses the Comp Set? For a small independent hotel it may
be easy. The hotel owner may choose the comp set by themselves. For
a larger hotel or a chain hotel, there are many stakeholders when
it comes to choosing a comp set: the Management Company the Chain
(corporate staff) the GM the sales and marketing team The selection
process becomes important because often, especially in the case of
a chain hotel, the GMs bonus is related to the performance of the
hotel compared to the comp set.
Slide 99
Why dont 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.
Slide 100
Key Considerations When Creating Comp Sets When it comes to
deciding upon a competitive set, you can think of the four Ps.
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.
Slide 101
Key Considerations - Participation You obviously dont want
hotels in your comp set if they dont submit data to STR. You can
request Participation Lists which show basic hotel attribute
information and participation details. Remember that participation
can mean four different types of data: Monthly this is usually the
default Daily most hotels submit daily data each day or each week
Segmentation many hotels submit Rooms Sold and Revenue broken down
by Transient, Group, and Contract Additional Revenue some hotels
submit Food & Beverage and Other Revenue in addition to Room
Revenue
Slide 102
Key Considerations - Proximity You can obtain a list of
potential competitors from STR with specific fields that indicate
the proximity related to your hotel. Distance from the competitor
to the subject hotel. Market and Submarket - These categories will
help you identify hotels that are geographically close to the
subject hotel. You can also check other geographic fields such as
City, Zip/Postal Code, County. Location This field can help show
clusters of hotels related to some other entity, such as an
airport, a downtown area, or a beach or resort area.
Slide 103
Key Considerations - Pricing On the list of competitors there
will be several fields that provide some indication of the price
level of the competitors. Scale If you are a chain hotel, the Scale
category will help to identify similar chain hotels. It is not
uncommon to look for competitors in one scale category above or
below the subject. Class The Class Category will help to identify
independent hotels that are in a similar category as the subject
hotel. Fields such as Rack Rates (public info gathered through
surveys) and Price Level can help provide some indirect pricing
information. Price-related information can also be found on the
internet.
Slide 104
Key Considerations - Product There are other fields that will
describe the features of hotels. Number of Rooms In most cases the
members of a Comp Set should be somewhat similar in size to the
Subject hotel. Size is somewhat reflective of the type of business.
Open Date The age of the hotel can help when considering Comp Set
members. Hotel Type These fields (Boutique, Extended Stay,
Convention, All-Suites, ) can help to identify hotels similar to
the subject. Meeting Space Compare these values for possible
competitors. Amenities Check these fields (Restaurant, Spa,
Waterpark, Oceanfront, ) to help indentify similar hotels.
Slide 105
Key Considerations - Weighting When you are analyzing the
various attributes of potential competitors related to
Participation, Proximity, Pricing, and Product; careful
consideration does need to be given to the weight of each of these
attributes. One person may put a much higher priority on Proximity
than Pricing, and another person might put a higher priority on
Product over both of these. Depending upon your situation, you may
need to sacrifice in one area or another. Later in this section, we
will talk about the fact that a hotel might have multiple comp
sets. One of the obvious advantages is that different comp sets can
be weighted more heavily on one consideration versus another.
Slide 106
Additional Considerations - optional There is a great deal of
external information that should be taken into consideration when
creating comp sets. The web sites of potential competitors can give
you an idea of the type of customer that they are targeting.
Searching the internet can also help reveal the distribution and
marketing strategies of potential competitors. Remember, you are
trying to determine if a customer stays at your hotel, what other
properties did they consider. Obviously many hotels conduct surveys
to answer this question as well.
Slide 107
What is the Average Number of Properties in a Comp Set? The
average number of hotels in a primary Comp Set is between five and
six. There is slight variation by scale.
Slide 108
Rules related to creating Comp Sets STR has a set of rules when
it comes to creating comp sets. The first rule relates to
sufficiency. In North America and Asia Pacific, comp sets must
include three or more hotels in addition to the subject. In Europe
and Mideast/Africa, comp sets must include four or more hotels in
addition to the subject. (This is related to strict EU
anti-competition regulations.) Hotels are encouraged to have more
than the minimum so if a hotel does not report for a time period
for some reason, the comp set data will still appear.
Slide 109
Comp Sets Rules - continued The second set of rules relate to
percentage checks They help to ensure that the data of a single
hotel, chain or company is not isolated in the comp set. When
percentages are calculated the rooms of the subject hotel, as well
as those in the same chain and parent company, are excluded. These
rules are sometime referred to as the 40/40/60 rule (NA and Asia)
or the 50/50/60 rule (elsewhere) and relate to the maximum
percentage based on rooms for a single property or chain (Holiday
Inn, Comfort Inn) or company (Starwood, Choice, Interstate,
Host).
Slide 110
Additional Comp Sets There are many cases where hotels have
more than one comp set. Multiple comp sets can serve different
benchmarking purposes. Hotels with multiple comp sets could have
various key competitive features and/or unique qualities. When a
hotel changes its comp set, they may elect to keep the old on for a
period of time to provide perspective. A second comp set must
differ from the primary comp set by at least two properties. The
same rules apply as for changes.
Slide 111
Reasons for Additional Comp Sets There are a wide variety of
reasons for additional comp sets: Local versus Regional one set
nearby and another farther away Subject hotel is between two
markets or cities Aspirational second set for hotels of higher
quality or performance level Different sets focusing on different
chains Different set for special niche (conference, water park,
boutique) Index-focused (aiming to achieve a specific index)
Different sets for Weekday/Weekend or Group/Transient mix Different
entities may not agree chain versus management company An old comp
set is linked to a prior contract Hotel wants to be compared to a
different industry segment
Slide 112
Quiz Questions 17) Benchmarking in the hotel industry takes
place at what level? A.Property level for an individual hotel
versus their Competitive Set B.Corporate level for a hotel company,
for example one brand versus others C.Geographic level for tourism
organizations, for example city versus comparable cities D.All of
the above levels 18) Comp sets are used for many purposes in hotel
operations, which of the following is one of these purposes? A.Comp
sets can be used to aid the sales and marketing departments in
determining the effectiveness of various pricing decisions B.Comp
sets can be used in management contracts for performance
requirements C.Comp sets can have an effect on a general managers
compensation D.All of the above are examples of how comp sets are
used 19) The four key considerations when creating a Competitive
Set are? A.Participation, Proximity, Policy and Product
B.Participation, Proximity, Pricing and Product C.Participation,
Parking, Policy and Pricing D.Participation, Perimeter, Pool and
Pricing
Slide 113
Quiz Questions continued 20) All of the following are good
reason for a hotel to have an additional competitive set, except
which one? A.Have a local competitive set based upon geography and
another based upon a special feature or niche, for example:
waterpark, boutique, or conference B.Have different sets for
weekday/weekend or group/transient business C.Have one set that you
can easily beat and another which is a realistic target D.Different
entities may not agree, for example, chain versus management
company 21) When can a competitive set be created? A.A competitive
set may be created once the hotel has opened B.A competitive set
may be created while the hotel is under construction C.A
competitive set may be created on the one year anniversary of a
hotels opening D.A competitive set may be created three months
before a hotel opens 22) Who creates a competitive set for a chain
hotel? A.Only the General Manager B.Only the Revenue Manager C.Only
the Sales and Marketing Managers D.It is a joint effort involving
many stakeholders
Slide 114
Quiz Questions continued 23) What is the average number of
hotels in a competitive set? A.Between 3 and 4 B.Between 4 and 5
C.Between 5 and 6 D.Between 6 and 7 24) Which is a valid rule
related to creating a competitive set? A.Comp sets must include
five or more hotels B.No single property or chain can account for
more than 25% of the total participating room supply of a comp set
C.No single company can account for more than 75% of the total
participating room supply of a comp set D.When percentages are
calculated, the rooms of the subject hotel, as well as the same
chain and parent company, are excluded
Slide 115
Quiz Questions continued 25) When can a competitive set be
changed? A.Only if your hotel has changed affiliations B.At any
time, although many wait until the beginning of the year C.Only at
the beginning of the year D.Only when a hotel has a new general
manager 26) Which is NOT a valid rule related to changing a
competitive set? A.If adding two hotels to a competitive set, both
must be in different chains B.A single hotel may be added to a
competitive set if it has been open less than six months C.A single
hotel may be added to a competitive set at any time D.Any change
must involve two or more hotels, e.g. add one/drop one, add two,
drop two, etc.
Slide 116
Application 6 Creating Comp Sets 1.Obtain a Radial
Participation List for a specific hotel. In the Application
Exercise raw data file, there are Radial Participation Lists on
different tabs for sample hotels (different scales, sizes, areas)
in the Philippines. You can obtain samples relevant to your area if
you would like. Shangri-La Edsa Manila (Luxury Class) Dusit Thani
Manila (Upper Upscale Class) Marriott Manila Hotel (Upper Upscale
Class) New World Manila Bay Hotel (Upper Midscale Class) Ramada
Manila Central (Midscale Class)
Slide 117
Application 6 continued 2.Identify the important the fields in
the Participation List based upon the guidelines related to the
four Ps. Fields could include Distance, Class, Number of Rooms and
Meeting Size. 3.In each of these fields, compare the values of the
subject hotel to the potential competitors to narrow down the
choices. 4.Check the Participation fields to see what types of data
the Subject hotel submits compared to the potential competitors.
5.What other fields could be useful to identify competitive hotels?
6.You can use the internet to collect additional data regarding
competitors, related to pricing, hotel web sites, amenities and
target customers. 7.Can you suggest a second comp set for your
subject hotel?
Slide 118
Application 6 Excel Alternative Depending upon your experience
with Excel, here is a suggested set of steps to help determine
potential competitors using basic Excel steps. 1.Obtain a Radial
Participation List for a specific hotel. Highlight the subject
hotel, the whole row. 2.The list is sorted by the Distance field.
Look at the hotels and the distances and determine a best case
number for the first range. (This could be 1 mile for one hotel and
10 miles for a different hotel.) Using a different color, highlight
just the Distance values (numbers only in the Distance column) for
the hotels in the best case first range. Determine the number for a
second range and highlight the next group with a different shade of
the same color. 3.Use the Excel Sort program to sort the
Participation List by the Class column. Find the subject hotel and
identify other hotels that are in the same Class as the subject.
Using a different color, highlight just the Class values (Class
names only in the Class column) for the hotels in the same group as
the subject. Identify the hotels in one Class group higher or lower
than the subject, and highlight these hotels with a different shade
of the same color.
Slide 119
Application 6 alternative continued 4.Using different colors,
repeat the process for the Number of Rooms and Meeting Space
fields. For the first closest range, you might select hotels that
are within 50 (you decide on the number) rooms (or 2000 square feet
when it comes to meeting space) higher or lower than the subject
hotel. Then for the second range, pick another number higher or
lower than the first range and highlight that with a different
shade. 5.If there are other fields that are important, you can
repeat the process for additional fields. Then use Excel to sort
the hotels by Distance to return to the original order. 6.Review
the hotels in distance order looking for ones that have similar
values to the subject in each of the fields that you used. The
highlights will make this easier to see. 7.Check the Participation
fields to be sure the potential competitors submit similar data as
the subject. 8.This method helps you come up with a good list of
potential candidates. Investigate the competitors more to confirm
your decisions.
Slide 120
Part 4 Introduction to Hotel Math
Slide 121
Introduction to Hotel Math What is Raw Data? Key Performance
Indicators sample formulas Percent Changes - sample formula
Multiple Time Periods sample methodology Comparing Property Data to
Other Groups of Hotels
Slide 122
Sample Raw Data Here is a sample monthly raw data file that STR
would receive from a hotel company. Most raw data is exported from
hotel company systems. It contains data for multiple hotels. Daily
data is also reported on either a daily or weekly basis. Fictitious
data, of course
Slide 123
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.
Slide 124
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.
Slide 125
Occupancy Definition The percentage of available rooms that
were sold during a specific time period. Calculation Occupancy is
calculated by dividing the Demand (number of rooms sold) by the
Supply (number of rooms available). This is a percentage. (Remember
you divide the smaller number by the larger number.) Occupancy =
Demand / Supply or Occupancy = Rooms Sold / Rooms Available
Slide 126
Monthly Occupancy - Formula ABCDEFG
1SupplyDemandRevenue(Formula) Occupancy (%) 2 Jan-10 31002345198765
C2 / B2 * 100 75.6 3 Feb-10 28002002175432 C3 / B3 * 100 71.5 4
Mar-10 31001776175012 C4 / B4 * 100 57.3 5 Apr-10 30002468234567 C5
/ B5 * 100 82.3 6 May-10 31002987312345 C6 / B6 * 100 96.4 You
could multiply times 100 (then format as a number with one decimal)
or format as a percentage (adds % symbol). Hotel Math Fundamentals
Excel.xlsx - Occupancy!A1
Slide 127
ADR Definition A measure of the average rate paid for rooms
sold during a specific time period. Calculation ADR is calculated
by dividing the Room Revenue by the Demand (Rooms Sold). This is a
dollar amount. ADR = Revenue / Demand
Slide 128
Monthly ADR - Formula ABCDEFG 1SupplyDemandRevenue(Formula)ADR
($) 2Jan-10 31002345198765 D2 / C2 84.76 3Feb-10 28002002175432 D3
/ C3 87.63 4Mar-10 31001776175012 D4 / C4 98.54 5Apr-10
30002468234567 D5 / C5 95.04 6May-10 31002987312345 D6 / C6 104.57
You could format as a $ (adds symbol) or as a number with two
decimals. Hotel Math Fundamentals Excel.xlsx - ADR
Slide 129
RevPAR Definition A measure of the revenue that is generated by
a property in terms of each room available. This differs from ADR
because RevPAR is affected by the amount of unoccupied rooms, while
ADR only shows the average rate of rooms actually sold. Calculation
RevPAR is calculated by dividing the Room Revenue by the total
number of Rooms Available, the Supply. This is a dollar amount.
RevPAR = Revenue / Supply
Slide 130
Monthly RevPAR Formula ABCDEFG
1SupplyDemandRevenue(Formula)RevPAR ($) 2Jan-10 31002345198765 D2 /
B2 64.12 3Feb-10 28002002175432 D3 / B3 62.65 4Mar-10
31001776175012 D4 / B4 56.46 5Apr-10 30002468234567 D5 / B5 78.19
6May-10 31002987312345 D6 / B6 100.76 You could format as a $ or as
a number with two decimals. Hotel Math Fundamentals Excel.xlsx -
RevPAR!A1
Slide 131
Hint Importance of RevPAR RevPAR is a very important metric for
the Hotel Industry since it is a combination of Occupancy and ADR.
A hotel could have a 100% Occupancy because of a low ADR. The
RevPAR will reflect that. A hotel could have a very high ADR, but
only sell one room. The RevPAR will reflect that as well.
Frequently when a hotel (or the GM) is evaluated or measured,
RevPAR is the metric that is being looked at.
Slide 132
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.
Slide 133
ABCDEFG 1 This Year Last Year Percent Change 2 Demand
(Formula)Demand 3Jan-102345 2456 (B3-D3)/D3*100-4.5 4Feb-102002
2112 (B4-D4)/D4*100-5.2 5Mar-101776 1750 (B5-D5)/D5*1001.5
6Apr-102468 2345 (B6-D6)/D6*1005.2 7May-102987 2555
(B7-D7)/D7*10016.9 Demand Percent Change You could multiply times
100 or format as a percentage. Hotel Math Fundamentals Excel.xlsx -
DemandPercentChange!A1
Slide 134
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.
Slide 135
Hint - % Changes for Raw Values The Percent Changes for raw
values such as Supply, Demand, and Revenue are valuable bits of
information. Supply Percent Change shows whether there are more or
less rooms available in the hotel(s) or market this year versus
last year. Demand Percent Change shows whether there are more or
less rooms sold (guests spending the night) this year versus last
year. Revenue Percent Change shows whether there is more or less
money being made by the hotel or hotels (and therefore being spent
by those guests).
Slide 136
ABCDEFG 1 2010 2009 Percent Change 2 ADR (Formula)ADR
3Jan-1084.76 81.93 (B3-D3)/D3*1003.5 4Feb-1087.63 88.85
(B4-D4)/D4*100-1.4 5Mar-1098.54 100.07 (B5-D5)/D5*100-1.5
6Apr-1095.04 95.24 (B6-D6)/D6*100-0.2 7May-10104.57 116.93
(B7-D7)/D7*100-10.6 ADR Percent Change You could multiply times 100
or format as a percentage. Hotel Math Fundamentals Excel.xlsx -
ADRPercentChange!A1
Slide 137
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.
Slide 138
Multiple Time Periods - Monthly Multiple time periods for
monthly data include: Year-to-Date (YTD) January through the
current month of the current year. Running 12-Month the current
month plus the prior 11 months, also called a 12-Month Moving
Average. Running 3-Month the current month plus the prior two
months. The metrics for all of these time periods are based upon
the aggregated raw monthly data. So you aggregate the Supply,
Demand, and Revenue for all the months and then apply the
Occupancy, ADR, and RevPAR formulas.
Slide 139
ABCD 1 SupplyDemandRevenue 2Jan-1031002345198765
3Feb-1028002002175432 4Mar-1031001776175012 5Apr-1030002468234567
6May-1031002987312345 7(Formula) sum(B2:B6) sum(C2:C6) sum(D2:D6)
8May YTD15100115781096121 YTD Supply, Demand, & Revenue You can
use the SUM function to aggregate the raw values. Hotel Math
Fundamentals Excel.xlsx - YTDSupplyDemandRevenue!A1
Slide 140
ABCDEFG 1 SupplyDemandRevenueOccupancyADRRevPAR
2Jan-1031002345198765 3Feb-1028002002175432 4Mar-1031001776175012
5Apr-1030002468234567 6May-1031002987312345
7YTD1510011578109612176.794.6772.59 8(Formula) C7/B7*100D7/C7D7/B7
YTD Occupancy, ADR, & RevPAR Hotel Math Fundamentals Excel.xlsx
- 'YTD Occ, ADR, RevPAR'!A1 Aggregate the raw values, then apply
same formulas as before.
Slide 141
How not to calculate metrics for multiple time periods? Numbers
for multiple time periods never use straight averages of monthly
values. Some people mistakenly compute YTD occupancy, for example,
by adding the occupancy of each month and dividing by the number of
months. This gives you a number which is close to the accurate
number, but this methodology assigns the same weight to each month,
instead of weighting based upon the number of days in each
month.
Slide 142
Index Numbers Index numbers are another example of a formula
used by the hotel industry. Index numbers compare the performance
of the subject property to the comp set. Here is the formula:
Subject Value / Comp Set Value * 100 A number greater than 100
means the subject property outperformed the comp set and a number
below 100 means the comp set outperformed the subject property.
Index numbers are available for Occupancy, ADR, and RevPAR. They
are relied upon heavily. Index numbers are percentages, multiple *
100 or format as %.
Slide 143
ABCDEFGHIJ Subject PropertyComp SetIndex Numbers 1 Occu-
pancyADR Rev- PAR Occu- pancyADR Rev- PAROccupancyADRRevPAR
2May-1096.4104.57100.7678.987.8069.29122.2119.1145.4 3(Formula)
B2/E2*100 C2/F2*100 D2/G2*100 Occupancy, ADR, & RevPAR Indexes
Hotel Math Fundamentals Excel.xlsx - 'Occ, ADR, RevPAR Indexes'!A1
Calc KPIs for Subject & Comp, then apply Index formula.
Slide 144
Hotel Math The math used in basic hotel industry performance
metrics is not too challenging. There are a set of formulas that
someone needs to understand, such as Occupancy, ADR, RevPAR,
Percent Changes and Index Numbers. There are methodologies that
someone needs to understand, for example a YTD number is based upon
aggregated data, not straight averages. The hotel industry relies
heavily upon data and the ability to effectively analyze that data
is an important skill.
Slide 145
Quiz Questions 27) The definitions for Supply, Demand and
Revenue used by STR and others in the lodging industry are taken
from what source? A.Lodging Industry Accounting Fundamentals Guide
B.Uniform System of Accounts for the Lodging Industry C.Hotel Book
Keeping for Dummies D.Modern Hotel Industry Accounting 28) Which
statement is true regarding raw data that is submitted to STR? A.A
small amount comes in the form of raw data files B.Most data is
entered online C.There are limited error check programs D.The
majority of data is exported from the hotel company systems 29)
Which is true regarding the type of performance data (Supply,
Demand, Revenue) that STR receives? A.Daily only B.Daily and
monthly only C.Daily, weekly, and monthly D.Daily, weekly, monthly
and quarterly
Slide 146
Quiz Questions continued 30) Which statement is true regarding
RevPAR? A.It is almost always higher than ADR B.It can be thought
of as a combination of Supply and Demand C.When a hotel or GM is
evaluated, the RevPAR metric is rarely considered D.It can be
thought of as a combination of Occupancy and ADR Use the
spreadsheet below to answer questions 31 ABCDEFG 12013SupplyDemand
Revenu eOccupancyADRRevPAR 2Jan46502883374790 3Feb42002394304038
4Mar46503255462210 5Mar YTD 31) The March YTD Occupancy (E5) is
_______. A.62% B.63.2% C.65% D.60.5%
Slide 147
Quiz Questions continued Use the spreadsheet below to answer
questions 32 ABCDEFG 12013 Occupancy This Year ADR This Year
Occupancy Last Year ADR Last Year Occupancy % Change ADR % Change
2Jan63.7$120.4062.4$118.72 3Feb66.3$133.7465.3$126.43
4Mar68.5$142.6567.7$133.70 5Apr68.2$138.0068.9$135.92 32) The
Average Daily Rate percent change for April (G5) is ______. A.2.1%
B.-2.1% C.1.5% D.1.4%
Slide 148
Application 7 Monthly Data 1.Obtain a sample raw monthly data
file (in Excel) with 48 months of property data for single sample
hotel. 2.The file will contain columns for STR Number, Month Date,
Supply, Demand, and Revenue. 3.Create three columns at the end for
Occupancy, ADR, and RevPAR. Enter the formulas for each metric and
copy the formulas to each row. 4.Insert one column after each of
the six metrics and add formulas for percent changes. You will have
to compare the This Year value to the Last Year value which appears
12 rows above. You will not be able to derive these metrics for the
first year of data. 5.What can you learn about this single hotel by
analyzing the data that you have just computed?
Slide 149
Part 5 Introduction to Hotel Industry Reports
Slide 150
Introduction to Hotel Industry Reports Property Level the STAR
Report Ad-Hoc Reports Trend Report Profitability/HOST Report
Pipeline Report Destination Report
Slide 151
Types of Hotel Industry Reports A wide variety of reports are
used to help analyze different aspects of the hotel industry. Here
are the major types: Property-level Reports comparing a single
property to other sets of hotels Ad-Hoc Reports analyzing various
performance or development metrics for a set of hotels Destination
Reports analyzing performance data for multiple sets of hotels
Slide 152
Property Level Reports - the STAR Report The most popular
property level report used by the industry is the STAR Report. The
name STAR stands for Smith Travel Accommodations Report. The
original version of this report was launched in 1987. The STAR
Reports compare the performance of the subject hotel to other
comparative groups of properties. STAR Reports are generated on a
monthly, weekly and daily basis.
Slide 153
STAR Report Details STAR Reports are normally generated in the
form of Excel workbooks. They are automatically distributed
electronically to staff persons responsible for each hotel. No one
else has access to a STAR Report for an individual hotel. The STAR
Reports contain multiple tabs/pages with lots of different types of
data. Experienced hotel staff use this data to improve the
performance of the hotel versus their competitors.
Slide 154
Sample Monthly STAR Report We will review three tabs of a
sample Monthly STAR Report. These are among the most popular pages:
Table of Contents displays the subject hotel name, date
information, and a list of all the pages included Monthly
Performance At A Glance Page Competitive Set Page
Slide 155
Monthly Table of Contents
Slide 156
Tab 2 - Monthly Performance at a Glance Provides a quick
one-page overview of performance relative to your comp set.
Displays Occupancy, ADR, and RevPAR for your property and your comp
set, also Index numbers (subject property value/comp set value) and
Percent Changes. For four points in time: Current Month, Year to
Date, Running 3-month, and Running 12-month. Also displays basic
information for the subject property and the report settings at the
top.
Slide 157
Monthly Performance at a Glance
Slide 158
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.
Slide 159
Tab 4 Competitive Set Report Provides a historic comparison of
your property to your comp set over time. Displays Occupancy, ADR,
and RevPAR, as well as Percent Changes, Index numbers (subject
property value/comp set value), and Ranking information (subject
property positi