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CHIA > Hotel Industry Analytical Foundation > Flashcards

Hotel Industry Analytical Foundation Flashcards

1
Q

SIX different types of players in the lodging industry are…

A
  • Chain
  • Parent
  • Operation-Corporate,Franchise,Independent
  • Management Company
  • Owner
  • Asset Management Company
  • Membership or Marketing Groups
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2
Q

What are some reasons there are many players that exist in the lodging industry?

A

They have different roles and functions

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3
Q

Why do parent companies create multiple chains?

A

To appeal to different target margins

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4
Q

What are the advantages of having so many different players in the hotel industry?

A

Market saturation: you can have a lot of hotels

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5
Q

What are the disadvantages of having so many different players in the hotel industry?

A
  • Less market share: less business because more players

- price sensitivity

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6
Q

Contrast independent versus chain hotels in and outside of the U.S.

A

There are more independent hotels internationally and chains, and more chain hotels in the U.S. it’s hard to have independent hotels in a market field with large well-known chains (such as the U.S.).

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7
Q

Describe the geographic categorization methods used by the hotel industry

A

World, continent, subcontinent, country, market, tract, Submarket

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8
Q

What is the value of consistent categorization?

A

You have to categorize things to get accurate reports and line up who you are competing against. In order to ensure consistency, companies need to closely align with their competitors.

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9
Q

Describe the non-geographic categorization methods used by the hotel industry.

A

There’s the scale and class category but there is no independent class

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10
Q

Compare the scale category to the class category.

A

The scale category is comprised of seven categories, six for chain hotel, In one category for all independent hotels.

When I chain is categorized in a specific scale group every hotel in that chain is in the scale group. The class category is similar to the scale category. The names of the categories are the same but there is no independent class group. So there are six class categories and seven scale categories.

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11
Q

Represents the hotel brand- displayed to the public on the building & in all interactions with the customer

A

CHAIN

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12
Q

First chain was…

A

HOLIDAY INN

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13
Q

How many chains are in the U.S. and how many rooms in total?

A

22+ chains in the US with 50,000+ rooms

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14
Q

How many chains are in the world and how many rooms in total?

A

24+ chains in the world with 75,000+ rooms

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15
Q

The count that STR makes available are based upon their…

A

“Census” database of 150,000+ hotels

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16
Q

How often is the STR “census” database updated?

A

Each semester with new additions added to database

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17
Q

STR stands for…

A

Smith Travel Research

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18
Q

Consists of multiple chains (often in a variety of types

A

PARENT COMPANY

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19
Q

How many parent companies are in the U.S. and how many rooms in total?

A

21+ parent companies in the US with 10,000+ rooms

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20
Q

How many parent companies are in the World and how many rooms in total?

A

23+ parent companies worldwide with 25,000+ rooms

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21
Q

Corporate, Franchise, Independent

A

OPERATION

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22
Q

A chain hotel owned/managed by the chain/parent company

A

CORPORATE

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23
Q

A chain hotel run by a THIRD party where the chain receives some sort of franchise fee

A

FRANCHISE

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24
Q

Not affiliated with a chain or parent company

A

INDEPENDENT

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25
Q

Independent hotels may be members of…

A

Various marketing groups

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26
Q

How many independent hotels are in the U.S. and how many rooms in total?

A

22,000+ independent hotels in the U.S with nearly 1.5 million rooms

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27
Q

How many independent hotels are in the world and how many rooms in total?

A

97,000+ independent hotels in the U.S with nearly 7 million rooms

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28
Q

Worldwide percentage: chain vs. indepedent

A

40% chain vs. 60% independent / closer to 30/70 or 20/80

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29
Q

U.S. chain vs. independent percentage: current vs. historically

A

70% vs. 30% independent

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30
Q

There has been a drastic percentage change between chains and independent hotels within the last how many years?

A

50 years

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31
Q

Mid 1900’s: U.S. chain vs. independent percentages were more like…

A

the percentages outside of the U.S.

40% chain vs. 60% independent / 30% chain or 70% independent

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32
Q

Which was more popular during the Mid 1900s? independent or chain?

A

independents

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33
Q

The proliferation of different types of chains is…

A

a relatively recent phenomenon

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34
Q

Many places globally are in a very similar situation as…

A

the U.S. was in the mid 1900s

a development opportunity for companies

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35
Q

In the U.S. STR receives performance data from how many hotels?

A

30,000+ hotels

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36
Q

In the U.S. STR receives performance data from what percentage of chain hotels and how many independent hotels?

A

95% chain; nearly 2,000 independent

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37
Q

Outside the U.S. STR receives performance data from how many hotels?

A

15,000+ hotels

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38
Q

Outside the U.S. STR receives performance data from how many independent hotels?

A

2,500+ hotels

participation varies in different countries around the world

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39
Q

It is possible to obtain a Property & Room Count Report to…

A

Summarize participation by AREA or Participation List to identify specific participating hotels

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40
Q

Operates a hotel for another party

A

MANAGEMENT COMPANY

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41
Q

Company has a management contract where it receives payment/some portion of profit

A

MANAGEMENT COMPANY

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42
Q

Name the hierarchy: OWNER / CHAIN / PARENT / MANAGEMENT

A

POMC > PARENT - OWNER - MANAGEMENT - CHAIN

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43
Q

How many management companies are in the U.S.?

A

29+ management companies

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44
Q

How many management companies are there worldwide and how many rooms included?

A

40+ management companies with 7,500+ rooms

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45
Q

How many owner companies are there in the U.S.?

A

22+ owner companies

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46
Q

How many owner companies are there worldwide and how many rooms included?

A

37 owners with 10,000+ rooms

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47
Q

Categorized with owner companies;

A

REIT ; Real Estate Investment Trust

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48
Q

What does REIT stand for?

A

Real Estate Investment Trust

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49
Q

When was Real Estate Investment Trust created?

A

REIT was created in 1960

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50
Q

When did the Real Estate Investment Trust Act become active in lodging?

A

REIT Act did not become active in lodging until late ’90s.

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51
Q

A company that owns/operates income-producing real estate assets

A

Real Estate Investment Trust

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52
Q

Designed to provide a real estate investment structure similar to the structure mutual funds provide for investments in stocks

A

Real Estate Investment Trust

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53
Q

Purpose is to reduce or eliminate corporate tax and in return are required to distribute ATLEAST 90% of taxable income to investors

A

Real Estate Investment Trust

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54
Q

represents the owner in the operation of a hotel

A

ASSET MANAGEMENT COMPANY

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55
Q

Hotels may have both a ________ & __________company

A

Management ; Asset management

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56
Q

How many Asset Management companies are there in the U.S.?

A

23+ Asset Management Companies

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57
Q

How many Asset Management companies are there worldwide and how many rooms are included?

A

34+ Asset Management Companies with 1,000+ rooms

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58
Q

Provide marketing assistance, reservation assistance , and focuses on certain types of hotels

A

MEMBERSHIP & MARKETING GROUPS

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59
Q

A cross between a chain & marketing group for independent hotels.

A

QUASI CHAINS

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60
Q

Created to be able to bring hotels under the Parent Company flag so they many utilize associated benefits

A

QUASI CHAINS

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61
Q

SIX different types of GEOGRAPHIC categorization in the lodging industry are…

A
  • WORLD
  • CONTINENT
  • SUB CONTINENT
  • COUNTRY
  • MARKET
  • TRACT OR SUBMARKET
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62
Q

Additional geographic categories for special situations such as…

A
  • groups of countries

- regions inside countries, or states/provinces

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63
Q

Within lodging, how many continent categories are there?

A

FOUR

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64
Q

Within lodging, what are the FOUR continent categories?

A
  • Americas
  • Europe
  • Mideast/Africa
  • Asia Pacific
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65
Q

How many subcontinents are there in total?

A

about 16 subcontinents

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66
Q

How many subcontinents does each continent have?

A

each continent includes THREE to FOUR sub-continents

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67
Q

STR uses what definition when it comes to which countries are included in each continent & sub-continent?

A

UNWTO

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68
Q

refers to these as “world regions”

A

UNWTO

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69
Q

STR uses the term “continents” to…

A

distinguish from regions inside a country

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70
Q

Caribbean, Central America, North America, South America

A

AMERICA continent

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71
Q

Central and South Asia, Northeastern Asia, Southeastern Asia, Australia and Oceania

A

ASIA PACIFIC continent

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72
Q

Eastern Europe, Northern Europe, Southern Europe, Western Europe

A

EUROPE continent

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73
Q

Middle East, Northern Africa, Southern Africa

A

MIDEAST/AFRICA continent

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74
Q

STR uses what definition when it comes to recognizing countries?

A

UNWTO

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75
Q

Territories such as the VIRGIN ISLANDS would…

A

appear as separate countries

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76
Q

How many countries have 1+ hotels?

A

211 countries

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77
Q

How many countries have 50,000+ rooms?

A

40 countries

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78
Q

Global differences related to STR programs are like…

A

currencies

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79
Q

There are small _________ differences related to STR data, reports, and programs

A

geographic

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80
Q

Geographic differences are based upon…

A

whether hotels are in North America or Not

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81
Q

There are how many hotels in the U.S.?

A

51,152+ hotels in the U.S.

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82
Q

How many different regions are there in the U.S.?

A

NINE regions

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83
Q

Larger countries are organized into…

A

Regions

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84
Q

The NINE regions in the U.S. correspond to…

A

the government census region

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85
Q

The NINE regions vary numbers in _______ and behave differently when it comes to metrics such as _____

A

hotels / ADR

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86
Q

What are the NINE regions in the U.S.?

A
  • Pacific
  • Mountain
  • West North Central
  • West South Central
  • East North Central
  • East South Central
  • New England
  • Middle Atlantic
  • South Atlantic
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87
Q

Washington, Oregon, California, Alaska, Hawaii

A

PACIFIC U.S. REGION (5)

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88
Q

Montana, Idaho, Nevada, Utah, Arizona, New Mexico, Colorado, Wyoming

A

MOUNTAIN U.S. REGION (8)

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89
Q

North Dakota, South Dakota, Nebraska, Kansas, Minnesota, Iowa, Missouri

A

WEST NORTH CENTRAL U.S. REGION (7)

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90
Q

Texas, Oklahoma, Arkansas, Louisiana

A

WEST SOUTH CENTRAL U.S. REGION (4)

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91
Q

Wisconsin, Illinois, Michigan, Indiana, Ohio

A

EAST NORTH CENTRAL U.S. REGION (5)

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92
Q

Kentucky, Tennessee, Mississippi, Alabama

A

EAST SOUTH CENTRAL U.S. REGION (4)

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93
Q

Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island

A

NEW ENGLAND U.S. REGION (6)

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94
Q

New York, Pennsylvania, New Jersey

A

MIDDLE ATLANTIC U.S. REGION (3)

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95
Q

Delaware, Maryland, West Virginia, Virginia, North and South Carolina, Georgia, Florida

A

SOUTH ATLANTIC U.S. REGION (8)

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96
Q

Hotel data uses ___________ categories

A

geographic

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97
Q

one of the most important geographic categories below Country

A

MARKET

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98
Q

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

A

MARKET

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99
Q

Market used in the hotel industry are affected by

A

hotel participation

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100
Q

Broken up into 163 geographic areas

A

Market in the U.S.

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101
Q

Roughly correspond to government Metropolitan Statistical Areas (MSAs)

A

Market in the U.S.

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102
Q

What does MSAs stand for?

A

Metropolitan Statistical Areas

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103
Q

STR uses how many different markets?

A

Two different markets

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104
Q

How many markets cross state borders in the U.S. Market?

A

12 U.S. Markets

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105
Q

reviewed annually to determine if new markets may be created based on growth in available supply and sample

A

Grouping of U.S. Markets

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106
Q

How many metro markets and non-metro markets are there in the U.S.?

A

92 metro markets / 71 non-metro markets

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107
Q

What is a metro market?

A

cities

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108
Q

What is a non-metro market?

A

rural areas

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109
Q

Metro Markets sometimes are separated into ________ and _________ cities

A

MAJOR / SECONDARY

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110
Q

In less populated states the _______ state may be a ________.

A

whole/market

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111
Q

“Top 25 markets” are based on _________ and ___________.

A

Revenue/Number of rooms

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112
Q

“Top 25 markets” exclude Las Vegas because…

A

due to participation issues.

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113
Q

STR uses internal ________ market numbers.

A

6-digit

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114
Q

WW Markets are dependent on

A

number of hotels and the participation

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115
Q

WW Markets are reviewed….

A

annually

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116
Q

Small countries may consist of just

A

a single market

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117
Q

a geographic subset of a Market

A

TRACT(SUBMARKET)

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118
Q

Term is used in North America and SubMarket is used outside of North America

A

TRACT

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119
Q

Term is used outside of North America and Tract is used in North America

120
Q

like Markets, are affected by hotel paricipation

A

TRACT(SUBMARKET)

121
Q

Also Reviewed annually

A

TRACT(SUBMARKET)

122
Q

Hotel Data is often displayed at the ______ and ______ level.

A

Market ; Tract

123
Q

How many Tracts are there in the U.S.?

A

628 Tracts in the U.S.

124
Q

geographic sub-division of a market

A

TRACT (SUBMARKET)

125
Q

number of tracts vary…

A

in a market

126
Q

What does CBD stand for in a metro market?

A

Central Business District

127
Q

Central Business District is a common tract for

128
Q

In non-metro (rural) markets, a tract may

A

represent a small city

129
Q

Outside of North America, the term “submarket” is used instead of ….

130
Q

Number of submarket depends upon the

A

size of the market

131
Q

As the number of hotels and participation increases in a market,

A

additional submarkets will be created

132
Q

Revision to markets and tracts are based upon…

A

supply (new hotel openings), participation (new hotels submitting performance data), client feedback

133
Q

Revision to markets and tracts are made when?

A

At the end of the year

134
Q

After December STAR reports and before January STAR reports is when…

A

revisions to markets and tracts are made

135
Q

Revisions to markets and tract are not…

A

made during the year

136
Q

Companies are notified of what changes?

A

Revisions to market and tract

137
Q

Hotels are organized into the…

A

standard government designation

138
Q

U.S. counties are identified by a _______ digit number

139
Q

the first two digits of the five digit number used to identify U.S. counties is…

140
Q

the last three digits of the five digit number used to identify U.S. counties is…

A

the county

141
Q

County data is often used for…

A

low-level impact analyses

142
Q

Participation is sometimes

A

a factor for many counties

143
Q

in the US ______ counties have at least one hotel

144
Q

in the US ______ counties have at least four hotels, only ____ percentage

A

1,319 ; 48

145
Q

Zip code is the ________ geographic unit in the U.S.

146
Q

participation is frequently

A

a factor for zip codes

147
Q

_______________ zip codes have 1+ hotels

148
Q

_______________ zip codes have 4+ hotels, only _____ percentage

A

2,823 ; 25

149
Q

MSA stands for…

A

Metropolitan Statistical Areas

150
Q

Metropolitan Statistical Areas are often used when…

A

working with other government data

151
Q

Most Metropolitan Statistical Areas geographic foot point is…

A

consistent with the Market.

152
Q

______ Metropolitan Statistical Areas have 1+ hotels; All of them have ____ reporting hotels

153
Q

Latitude and Longitude for hotels allow you to…

A

view hotels with various mapping programs

154
Q

Latitude and Longitude for Hotels are very accurate for…

A

North America

155
Q

Hotel Industry Categorization (Non-geopgraphic) Scale have _______ categories

156
Q

How many categories in the SEVEN scale categories are for chain hotels ranging from luxury to economy?

157
Q

How many categories in the SEVEN scale categories are for Independent hotels?

158
Q

What is the starting point of average daily rate for luxury hotels?

159
Q

What is the starting point of average daily for economy hotels?

160
Q

The average ADR of the Independent Scale roup in the U.S. and world is close to…

161
Q

A chain is categorized in a…

A

specific Scale Group

162
Q

How do Chains get grouped into Scales?

A

Based on ADR NOT upon subjective criteria (ex. amenities)

163
Q

At the beginning of every year, STR _______________ and _________________ based upon the annual data for the prior year.

A

subtotals all the hotels in the world by chain ; calculates the average ADR per chain

164
Q

Chains are sorted by…

A

the ADR amount from high to low

165
Q

Chain breakpoints are determined between…

A

the different Scale groups and may move up or down year to year

166
Q

Chains sometimes will…

A

move up or down to the next higher or lower scale group.

167
Q

Luxury Hotels tend to be located…

A

in larger cities & resort locations

168
Q

Upper Upscale hotels tend to be located…

A

in larger cities & business locations

169
Q

There is a higher concentration of _______ and ______ hotels in smaller metro & rural markets

A

Economy ; Midscale

170
Q

Luxury hotels are usually in ….

A

urban and resort locations

171
Q

upper upscale hotels are usually in…

A

urban and suburban locations

172
Q

upscale hotels are most often in…

A

suburban locations

173
Q

upper midscale hotels are most often in…

A

suburban and small town locations

174
Q

Midscale & Economy are generally in….

A

suburban, small town, and interstate locations

175
Q

The “class” category is similar to _____ and has no ______ group.

A

scale; independent

176
Q

There are only ______ class categories instead of the SEVEN scale groups

177
Q

Independent hotels are slotted into the scale categories at…

A

similar ADR levels

178
Q

chain hotels are always in the same class as…

179
Q

Class is used globally but is…

A

especially popular outside of North America where there are more independet hotels.

180
Q

Grouping Independent hotels into classes is….

A

on a market-by-market basis

181
Q

Grouping Independent hotels into classes involves…

A

the ADRs of participating chain hotels which are analyzed and breakpoints are created between the different scale groups

182
Q

After analyzing the ADR and creating breakpoints between scale groups, properties are…

A

combined into different groups based upon the ADR of the independent property compared to the chain hotels.

183
Q

Group of independent hotels into classes is done…

A

at the beginning of the year based upon annual data for the prior year.

184
Q

Class category is important because…

A

it is relied upon heavily especially outside North America.

185
Q

Non-North America STAR reports compare a…

A

SUBJECT hotel to the market/submarket/tract/class IN ADDITION to the competitive set.

186
Q

Depending on participation, the class group…

A

may be “collapsed”/combined.

187
Q

North America STAR reports COMPARE with…

A

Market Class (all the hotels in the same Market & Class) along with other industry segments

188
Q

Location category in the U.S. are….

A

defined based upon specific zip codes

189
Q

Extended stay hotels are NOT

A

a scale category

190
Q

The extended stay chains range in…

191
Q

Chains are organized into ______ levels, _______ and _______

A

two ; upper ; lower

192
Q

Extended stay hotels often quote

A

weekly rates

193
Q

Extended stay hotel guests stay…

A

typically 4-7 nights

194
Q

Hotel types are not

195
Q

A single hotel can be

A

categorized as multiple types

196
Q

How many different types of hotels are there?

197
Q

STR does not track in its data…

A

“pure” condo and timeshare properties

198
Q

only those properties with rooms in a _____ are included in STR

A

Rental Pool

199
Q

All Inclusive, All Suite, B&B/Inn, Boutique, Condo, Conference, Convention, Corporate Housing, Destination Resort, Timeshare

A

Hotel types used by STR

200
Q

Rooms Available for the rental pool are…

A

based upon an annual average from the prior year

201
Q

properties with rooms and public spaces that offer unique contemporary and distinctive design/decor

A

Boutique hotels

202
Q

often a stylish luxurious, aspirational, or avant-garde feeling/ambiance is promoted

A

Boutique hotels

203
Q

STR generally defines chains and independent hotels in the boutique segment as…

A

being concentrated in the luxury, upper upscale, and upscale chain and class categories

204
Q

having actual/estimated ADR of $175 and typically having fewer than 200 rooms

A

Boutique hotels

205
Q

There are _________ in the U.S. & approximately _____ in the world

A

700 boutique hotels ; 2,500 hotels

206
Q

appeal to the leisure traveler, located in resort markets, and are considered a destination in themselves

A

Destination Resorts

207
Q

Generally luxury or upper upscale class hotels

A

Destination Resorts

208
Q

How many Destination Resorts are in the U.S.?

209
Q

All guest rental units consists of one or more bedrooms and may include a separate living area (kitchenettes or mini refrigerators)

210
Q

often do not have integrated dining facilities available and many offer complimentary breakfast

211
Q

Properties with a major focus on conference facilities

A

Conference Hotels

212
Q

must meet guidelines of the International Association of Conference Centers

A

Conference Hotels

213
Q

IACC stands for…

A

International Association of Conference Centers

214
Q

Hotels with a minimum of 300 rooms and large meeting facilities (minimum of 20,000ft squared) and not part of the conference center group

A

Convention Hotels

215
Q

A property where a specified part of a piece of real estate is individually owned while use of and access to common facilities in the piece (ex. hallways, heating system, elevators, exterior area) is executed under legal rights associated with the individual ownership and controlled by the association of owners that jointly represent ownership of the whole piece.

216
Q

A form of ownership/right to the use of a property, or the term used to describe such properties, typically resort condominium units, multiple parties own and have rights to use the propety

217
Q

ownership & access are allocated in defined periods of time (typically one week)

218
Q

units may be owned in perpetuity or on a term lease “right to use” basis

219
Q

Options vary in size and are usually short term or long term rentals. Many are furnished and have additional amenities

A

Corporate Housing

220
Q

Providing linens and a stocked kitchen is a standard practice in many, along with furniture such as bed, desk, and other basics

A

Corporate Housing

221
Q

the type of corporate housing normally determines…

A

what kinds of amenities are included in the rental

222
Q

Additional corporate housing amenities may include…

A

swimming pools, exercise rooms, tennis court.

223
Q

Independently owned and operate. Most include breakfast in the room rate

A

Bed and Breakfast

224
Q

have 20 rooms or less and have resident/owner innkeeper

A

Bed and Breakfast

225
Q

Various ratings, companies that rate based on range of criteria and can vary and be inconsistent

A

Hotel Ratings

226
Q

Individual hotels compare their performance to the performance of a…

A

competitive set of a hotel

227
Q

The information for the competitive set is…

A

carefully tracked by the subject hotel

228
Q

the subject hotel is…

A

the owner of the comp set

229
Q

Individual hotels can compare their performance to…

A

hotels in pre-defined industry segments near their hotel i.e. the market/tract/submarket where they are located);.

230
Q

Companies compare their own properties to…

A

a variety of comparative groups of hotels to gauge the performance of their portfolio

231
Q

Tourism organizations also compare…

A

their local area to “comparable” markets

232
Q

Group of hotels used primarily for comparison against a subject property for performance benchmarking purpose

A

Competitive Set

233
Q

Competitive in nature : same guests, sharing similar qualitative and quantitative features

A

Competitive Set

234
Q

How are comp sets used?

A
  • compared to the subject property for performance benchmarking purposes
  • aide in the sales & marketing department
  • use in management contracts for performance requirements (often determines the amount of compensation managers receive)
  • use for internal and external analysis (microeconomic)
235
Q

Why do we use Comp sets?

A
  • historically, hoteliers have relied on each other for performance information (price, quantity, quality)
  • call arounds were performed and strategies such as count cars in the parking lot and windows with lights on were used.
  • There is no way of assuring whether entities were being honest with each other or whether their information is pertinent or relevant to that of the seekers.
236
Q

STR began collecting performance data from hotels when?

A

Late 1980s

237
Q

when did STR coin the term “comp set” and became a reliable source for hotels to get accurate aggregate information about their comp set?

A

Late 1980s

238
Q

finding the average based on the data from a group of hotels so that each individual hotel is protected from exploitation of their specific data.

A

Aggregating

239
Q

For Aggregating, no individual property data is…

A

ever disclosed to another property

240
Q

Despite attempts throughout history to prevent anticompetitive acts…

A

anti - competition actions are still committed today with the hotel industry.

241
Q

When are comp sets created?

A

By the time the hotel opens and sometimes long before construction

242
Q

The hotel can select a competitive set and …

A

can receive and “under construction” STAR report. This way the new hotel staff can track the performance of the comp set prior to the opening of the hotel.

243
Q

Who chooses the comp set?

A

Stakeholders (Management Company, General Manager, Chain company, The sales and marketing team)
-Each entities have different goals towards the comp set

244
Q

Participation/Proximity/Pricing/Product

A

KEY Considerations when Creating Comp Sets

245
Q

Participation can mean _________ different types of data.

246
Q

What are the FOUR different types of data?

A

Monthly, Daily, Segmentation, Additional Revenue

247
Q

Usually default of participation type of data.

A

Monthly (KEY Considerations when Creating Comp Sets)

248
Q

Most hotels submit daily data each day/week of participation type of data

A

Daily (KEY Considerations when Creating Comp Sets)

249
Q

Man hotels submit rooms sold and revenue broken down by transient/group/contract of participation type of data

A

Segmentation (KEY Considerations when Creating Comp Sets)

250
Q

Some hotels submit Food and Beverage and other revenue in addition to Room Revenue of participation type of data

A

Additional Revenue (KEY Considerations when Creating Comp Sets)

251
Q

You can obtain a list of potential competitors from STR with specific fields that indicate the _________ related to your hotel

A

Proximity (KEY Considerations when Creating Comp Sets)

252
Q

___________ from the competitor to the subject hotel

A

Distance (KEY Considerations when Creating Comp Sets)

253
Q

Will help identify hotels that are geographically close to the subject hotel

A

Market and Tract (Submarket) (KEY Considerations when Creating Comp Sets)

254
Q

You can also check other geographic fields for when considering and creating comp sets such as…

A

City, Zip and postal code, County

255
Q

This field can help show clusters of hotels related to other entity

A

Location (KEY Considerations when Creating Comp Sets) i.e. airport, downtown area, beach, resort, etc.

256
Q

Pricing: If you are a chain hotel the ______ category will help to identify similar _____ hotels

A

scale ; chain

257
Q

Pricing: it is NOT uncommon to look for _____ in one scale category above or below the subject.

A

competitors

258
Q

Pricing: help to identify independent hotels that are in the a similar category as the subject hotel

259
Q

Public information gathered through surveys

260
Q

Fields such as _____, _____, and ____ can help provide some indirect pricing information

A

Rack Rate, Tract Tier, Price Level

261
Q

________________ information can also be found on the internet

A

Price-related

262
Q

Sufficiency, Percentage Checks

A

Rules Related to Creating Comp Sets

263
Q

Sufficiency: In north america, comp sets must include ____ or more hotels in addition to the subject

264
Q

Sufficiency: Hotels are encouraged to have ____ or more so that if a hotel does not report for a time period, the comp set data will still appear.

265
Q

Sufficiency: Outside of North America, comp sets must include ____ or more hotels in addition to the subject

266
Q

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

A

Percentage Check

267
Q

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

A

percentage (checks)

268
Q

No single property or chain can account for more than ____ of the total participating room supply of a competitive set.

269
Q

Outside of North America, no single property of chain can account for more than _____ of the total participating room supply of a competitive set.

270
Q

No single company can account for more than ____ of the total participating room supply of a competitive set.

271
Q

An average number of properties in a comp set is _____, slight variation by scale.

272
Q

In the U.S., only _____ of the properties in your __________ name you in their primary comp set

A

45.13% ; primary comp set

273
Q

When properties in your primary comp set name you in their primary comp set

A

Nameback percentage

274
Q

The specific properties that name your hotel in their comp set

A

Reverse Comp Set

275
Q

The average U.S. hotel is named as a competitor by ____ hotels that aren’t in its comp set.

276
Q

It is possible to obtain the members of the _________ for your hotel from STR

A

Reverse Comp Set

277
Q

When are comp sets changed?

A

Anytime ; Many wait until beginning of the year

278
Q

Comp Sets may change due to…

A
  • changes in the subject hotel (i.e. renovation,conversion, new management
  • changes in the market (i.e. new competitive hotels open)
  • strategic change; repositioning improving comp set strength
279
Q

Some companies make changes to comp sets at….

A

specific times of the year

280
Q

Rules related to changing comp set address..

A

rules related to changes that address “isolation” issues

281
Q

Comp Set changes must be made by a net change of….

A

two or more properties

282
Q

Add or subtract two; add or subtract one; add two subtract two; as long as the remaining hotels is not below the minimum sufficiency number

A

Comp Set changes

283
Q

If properties are only making a change with two properties…

A

BOTH must be a different chain, parent company, and management company from the subject hotel.

284
Q

Comp Set Rules ensure that a _______ is never isolated.

A

single hotel’s data

285
Q

A hotel can add a brand new hotel which has been open less than _____

A

6 months (Exception to the comp set change rules)

286
Q

A hotel can remove a property from its comp set that has…

A

stopped participating after 3 months (Exception to the comp set changes rules)

287
Q

For Convention and Visitor Bureaus and Local Tourism Organizations: _____ in the U.S. receive Data in the form of Destination

288
Q

For Convention and Visitor Bureaus and Local Tourism Organizations: ____ outside the U.S. receive Data in the form of Destination

A

another 100+

289
Q

CVBs, Travel or Tourism Organization, Destination Marketing Organizations

A

Names for Convention and visitor Bureaus and Local Tourism Organization

290
Q

What does DMO stand for?

A

Destination Marketing Organization

291
Q

Supply, Demand, Room Revenue, Occupancy, ADR, Percent change

A

Basic Hotel Industry Performance Metrics

292
Q

Total rooms available

A

Supply (Basic Hotel Industry Performance Metrics)

293
Q

Total rooms sold

A

Demands (Basic Hotel Industry Performance Metrics)

294
Q

Money collected from the sold

A

Room Revenue (Basic Hotel Industry Performance Metrics)

295
Q

Rooms Sold divided by Rooms Available ; a percentage (%)

A

Occupancy (Basic Hotel Industry Performance Metrics)

296
Q

Room Revenue divided by Rooms Sold ; a dollar amount ($)

A

Average Daily Rate (Basic Hotel Industry Performance Metrics)

297
Q

year over year difference

A

Percent change (Basic Hotel Industry Performance Metrics)

CHIA (2 decks)

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