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CHIA > Hotel Math Fundamentals: The Metrics used by the Hotel Industry > Flashcards

Hotel Math Fundamentals: The Metrics used by the Hotel Industry Flashcards

1
Q

How does STR obtain Raw Data?

A

Most raw property sales data is directly exposed from the systems of the hotel companies. This helps increase the reliability of the data.

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2
Q

Most _____________ is directly exposed from the systems of the hotel companies. This helps increase _________ of the data.

A

raw property sales data; reliability

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3
Q

Companies send STR a _______ each month, week, and/or day

A

raw data file

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4
Q

Some hotels and smaller companies enter the data on. _________ which can be used to enter monthly or daily data. Users can also enter ________ via the web-later

A

the STR website; segmentation data

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5
Q

Hotel ID, Hotel Name, Date, Rooms Available, Rooms Sold, Room Revenue

A

“Sample” Raw Data

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6
Q

Raw Data includes…

A

Hotel ID, Hotel Name, Date, Rooms Available, Rooms Sold, Room Revenue

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7
Q

In most cases, companies provide their own…

A

unique hotel identification without a hotel name

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8
Q

A daily file would look the same as…

A

a monthly raw data file except for the date field

YYYMMDD

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9
Q

A non-US data file would have a…

A

currency indicator (i.e. USD, EUR, GBP)

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10
Q

DATA ERROR CHECKS: STR performs a large volume of….

A

comprehensive error checks upon the raw data

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11
Q

DATA ERROR CHECKS: New data is compared to prior data for __________

A

consistency

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12
Q

DATA ERROR CHECKS: There are ___________ limits related to geography and type of hotel.

A

Occupancy and ADR

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13
Q

DATA ERROR CHECKS: STR also tracks special events that would…..

A

cause unusual occupancies and ADR

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14
Q

DATA ERROR CHECKS: Any exceptions are verified with…..

A

the data provider (company or hotel) before the data is accepted.

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15
Q

STR DATA Guidelines: STR uses a strict set of definitions based on the…

A

UNIFORM SYSTEM OF ACCOUNTS FOR THE LODGING INDUSTRY

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16
Q

rooms available

A

SUPPLY

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17
Q

the number of rooms in a hotel multiplied by the days in the month

A

SUPPLY

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18
Q

(# of rooms in a hotel) x (days in the month)

A

SUPPLY

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19
Q

rooms sold

A

DEMAND

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20
Q

number of rooms sold by a hotel

A

DEMAND

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21
Q

does not include complimentary rooms

A

DEMAND

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22
Q

does not include “no-shows”

A

DEMAND

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23
Q

does not include complimentary rooms or “no-shows”

A

DEMAND

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24
Q

reservations not cancelled but no one checked in towards them

A

NO-SHOWS

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25
Q

total room revenue generated from the sales of rooms

A

Revenue

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26
Q

does not include taxes

A

Revenue

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27
Q

total room revenue generated from sales of rooms, not including taxes

A

Revenue

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28
Q

Includes service charges

A

Revenue

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29
Q

does not include resort fees

A

Revenue

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30
Q

includes service charges NOT resort fees, nothing else such as F&B

A

Revenue

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31
Q

The Uniform System of Accounts for the Lodging Industry is…

A

available from the AHLA or HFTP

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32
Q

What does KPI stand for?

A

Key Performance Indicators

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33
Q

From these raw data values, STR calculates the _______ hotel industry Key Performance Indicators.

A

three

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34
Q

Occupancy (%), Average Daily rate ($), Revenue per Available Rooms ($)

A

Hotel Industry Key Performance Indicators

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35
Q

What does ADR stand for?

A

Average Daily Rate

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36
Q

What does RevPAR stand for?

A

Revenue per Available Room

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37
Q

Important metric that is based upon ALL rooms

A

Revenue per Available Room

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38
Q

combination of occupancy and Average Daily Rate

A

Revenue per Available Room

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39
Q

Important metric that is based upon ALL rooms, combination of occupancy and Average Daily Rate

A

RevPAR

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40
Q

The percentage of available rooms that were sold during a specific time period

A

Occupancy

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41
Q

Calculated by dividing the Demand (# of rooms sold) by the supply (# of rooms available)

A

Occupancy

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42
Q

((# of rooms sold) / (# of rooms available)) x 100

A

Occupancy

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43
Q

A percentage; Divide the SMALLER number by the large number

A

Occupancy

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44
Q

(Demand/Supply) x 100

A

Occupancy

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45
Q

A measure of the average rate paid for rooms sold during a specific time period

A

Average Daily Rate

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46
Q

divide the Room Revenue by the Demand (# of rooms Sold)

A

ADR

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47
Q

(Revenue/Demand)

A

ADR

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48
Q

(Revenue)/((# of Rooms Sold)

A

ADR

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49
Q

A dollar amount

A

ADR

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50
Q

A Measure of the revenue that is generated by a property in terms of each room available

A

Revenue per Available Room

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51
Q

Differs from Average Daily Rate because it is affected by the amount of unoccupied room while Average Daily Rate only shows the average rate of rooms actually sold

A

Revenue per Available Room

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52
Q

How is RevPAR different from ADR?

A

it is affected by the amount of unoccupied rooms

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53
Q

How is ADR different from RevPAR?

A

it only shows the average rate of rooms actually sold

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54
Q

Differs from Revenue per Available Rooms because it only shows the average rate of rooms actually sold while Revenue per Available Rooms is affected by the amount of unoccupied room

A

Average Daily Rate

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55
Q

divide the Room Revenue by the total number of Rooms available (Supply)

A

Revenue per Available Room

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56
Q

(Room Revenue) / (total # of Rooms Availabl)

A

RevPAR

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57
Q

A dollar amount

A

RevPAR

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58
Q

(Revenu/Supply)

A

RevPAR

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59
Q

Of the three Key Performance Indicators, ADR and RevPAR…

A

are both Dollar amounts

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60
Q

To get the ADR value…

A

divide Revenue by Rooms Sold (Demand)

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61
Q

To get the RevPAR value…

A

divide Revenue by Rooms Available (Supply)

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62
Q

What is the difference between how you find ADR and RevPAR?

A

To get ADR value, you divide Revenue by Rooms Sold (Demand) whereas to get the RevPAR, you divide Revenue by Rooms Available (Supply)

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63
Q

In most cases, the RevPAR amount should be _______ than the ADR amount

A

lower

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64
Q

the Revenue per Available Room amount should be lower than the Average Daily Rate amount

A

helps to check your math

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65
Q

The only time that Revenue per Available Room amount is not lower than the Average Daily Rate amount would be…

A

if the rooms sold number was GREATER than the Rooms Available.

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66
Q

When the rooms sold number is Greater than the Rooms Available occupancy…

A

would be greater than 100%

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67
Q

Some people calculate RevPAR by…

A

multiplying ADR times Occupancy

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68
Q

important metric for the Hotel Industry since it is a combination of Occupancy and ADR

A

RevPAR

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69
Q

A hotel could have 100% Occupancy because of a low ADR

A

RevPAR will reflect that

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70
Q

A hotel could have a very high ADR but only sell one Room

A

RevPAR would reflect that

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71
Q

Often people will talk about whether a RevPAR increase(or decrease) is attributed more to…

A

an increase(or decrease) in occupancy or ADR.

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72
Q

Frequently when a hotel or General Manager is evaluated or measured….

A

RevPAR is the metric that is being looked at.

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73
Q

The comparison of the THIS YEAR (TY) number versus the LAST YEAR (LY) number, whether a raw value or a Key Performance Indicator (KPI)

A

Percent Changes

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74
Q

What does TY stand for?

A

This Year

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75
Q

What does LY stand for?

A

Last Year

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76
Q

Illustrates the amount of growth (up, flat, down) from the same period last year

A

Percent Changes

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77
Q

The “TY” number minus the “LY number divided by the “LY” number, then times 100 since it is a percentage

A

Percent Changes

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78
Q

((TY-LY)/LY)*100

A

Percent Changes

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79
Q

Remember the parentheses for the “order of operations”

A

Percent Changes

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80
Q

STR typically shows Percent Changes numbers such as…

A

Occupancy Percent Change

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81
Q

Sometimes people talk about…

A

Point Change

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82
Q

IF the occupancy was 51% this year compared to 50% last year, the point change would be _____ and the percent change would be _____

A

1 ; 2%

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83
Q

STAR Reports always show…

A

Percent Change

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84
Q

shows whether the occupancy this year is greater or less rooms than the occupancy last year

A

Occupancy Percent Change

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85
Q

changes could be related to supply and demand changes

A

Occupancy Percent Change

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86
Q

shows whether the average rate this year is greater or less than the average rate last year

A

Average Daily Rate Percent Change

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87
Q

shows whether the RevPAR amount is greater or less than the amount last year

A

Revenue Per Available Room Percent Change

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88
Q

changes could be related to Occupancy and ADR differences

A

Revenue Per Available Room Percent Change

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89
Q

roughly the combination of Occupancy and ADR Precent Change Great to know for checking math

A

RevPAR Percent Change

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90
Q

Great to know for checking math

A

RevPAR Percent Change

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91
Q

If occupancy percent change is 2% and ADR Percent Change is 2% than RevPAR percent change will roughly be…

A

4%

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92
Q

If occupancy percent change is 2% and ADR Percent Change is -2%, than RevPAR percent change will roughly be…

A

0%

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93
Q

People will talk about whether a RevPAR Percent Change, whether positive or negative, is more attributed to the _______ or the _________.

A

Occupancy Percentage Change; ADR Percent Change

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94
Q

If the occupancy Percent Change is 4% and the ADR Percent change is 1%, than the RevPAR Percent Change will roughly be…

A

5%

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95
Q

more influenced by Occupancy than ADR

A

RevPAR Percent Change

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96
Q

RevPAR Percent Change is more influenced by __________ than _________.

A

Occupancy; ADR

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97
Q

If the Occupancy percent change is -4% and the ADR Percent Change is -1%, than the RevPAR Percent Change will roughly be…

A
  • 5%

* In this case, the negative RevPAR percent change is more a factor of occupancy than ADR

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98
Q

1 What is the general trend over time? (Are Occupancies or ADRs going up,down,or are they constant?)

A

Thing/Scenarios to consider when Analyzing Percent Change Numbers

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99
Q

Thing/Scenarios to consider when Analyzing Percent Change Numbers are…

A

1 What is the general trend over time? (Are Occupancies or ADRs going up,down,or are they constant?)

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100
Q

If there was a big event, during the current month this year, than…

A

the numbers will probably go up.

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101
Q

If there was a big even last year, than the numbers…

A

may go down.

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102
Q

When looking at monthly numbers, always check…

A

the number of weekends compared to week days.

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103
Q

In a month there cane be anywhere from ______ weekend days

A

8-10

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104
Q

If a hotel does better on the weekends, than…

A

a month with more weekend days will always look better

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105
Q

Be sure to check holiday. Some are ________ and some have ______ but vary the day of weekend while others vary _______.

A

consistent ; consistent dates ; substantionally

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106
Q

The __________ of holidays related to weekends can have a significant impact

A

juxtaposition

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107
Q

1st Friday of the month

A

Consistent holiday

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108
Q

Christmas

A

vary the day of the week but have consistent date

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109
Q

Easter

A

vary substantially and falls on different months

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110
Q

When checking daily data…

A

be sure to check special events

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111
Q

The formulas for daily Key Performance Indicators and Percent Change are….

A

the same as for monthly
obviously the date filed are different
(201007-monthly ; 20100725-daily)

112
Q

Monthly percent change always compare…

A

the current month this year to the same month last year

113
Q

MONTHLY PERCENT CHANGE: July of 2011 would be compared to…

A

July of 2010

114
Q

MONTHLY PERCENT CHANGE: 201107 is compared to..

115
Q

((201107value - 201007 value)/201007 value) x 100

A

Example of Monthly percent change formula

116
Q

Daily percent changes are..

A

not based upon exact dates

117
Q

July 15 in 2010 is a Thursday but July 15 in 2009 is a _______.

118
Q

based upon “comparable days”

A

Daily Percent changes

119
Q

based upon the SAME day of week last year with the closest date

A

Daily Percent changes

120
Q

DAILY PERCENT CHANGES: Thursday 20100715 is compared to…

A

Thu 20090716

121
Q

DAILY PERCENT CHANGES: Saturday 20100731 is compared to…

A

Sat 20090801

122
Q

The actual dates will ALWAYS be off….

A

by one or two days, depending upon leap year.

123
Q

((20110714 value - 20100716 value) / 20100716 value) x 100

A

Example of Daily Percent change formula

124
Q

Multiple time periods for monthly data include…

A

Year-to-Date, Running 12-Months, Running 3-Months

125
Q

What does YTD stand for?

A

Year-to-Date

126
Q

Year-to-Date, Running 12-Months, Running 3-Months

A

Multiple time periods for monthly data

127
Q

January through the current month of the current year

A

Year-to-Date

128
Q

the current month plus the prior 11 months

A

Running 12-months

129
Q

Also known as 12-Month Moving Average

A

Running 12-months

130
Q

the current month plus the prior two months

A

Running 3-months

131
Q

Metrics for all of the time periods (Year-to-Date, Running 12-Months, Running 3-Months) are based upon…

A

the aggregated raw monthly data

132
Q

to find the metrics for all the time periods (Year-to-Date, Running 12-Months, Running 3-Months), you aggregate the ______________ for all months and then apply the occupancy, ADR, and RevPAR formulas

A

SUPPLY,DEMAND,REVENUE

133
Q

to find the metrics for all the time periods (Year-to-Date, Running 12-Months, Running 3-Months), you aggregate the Supply, Demand, Revenue for all months and then….

A

apply the occupancy, ADR, and RevPAR formulas

134
Q

Multiple time periods for daily data include…

A

Current Week, Month-to-Date,Running 28-Day, Running 4-Week

135
Q

the seven days, starting on SUNDAY and ending on Saturday

A

Current Week

136
Q

What does MTD stand for?

A

Month-to-Date

137
Q

The 1st of the current month through the current day of the month

A

Month-to-Date

138
Q

The current day plus the prior 27 days

A

Running 28-Days

139
Q

The current day plus the prior three same days of the week

A

Running 4-Week

140
Q

Metrics for all of the time periods (Current Week, Month-to-Date,Running 28-Day, Running 4-Week) are…

A

based upon the aggregated raw daily data.

141
Q

Same procedure as Monthly

A

Multiple time periods for daily data

142
Q

to find the metrics for all the time periods (Current Week, Month-to-Date,Running 28-Day, Running 4-Week) you aggregate the Supply, Demand, Revenue for all months and then….

A

apply the occupancy, ADR, and RevPAR formulas

143
Q

to find the metrics for all the time periods (Current Week, Month-to-Date,Running 28-Day, Running 4-Week) you aggregate the ______________ for all months and then apply the occupancy, ADR, and RevPAR formulas

A

SUPPLY,DEMAND,REVENUE

144
Q

Numbers for multiple time periods NEVER use average of monthly or daily values

A

How NOT to Calculate metrics for multiple time periods

145
Q

Do not calculate metrics for multiple time periods by

A

using the average of monthly or daily values

146
Q

Some people mistakenly compute YTD occupancy by…

A

adding the occupancy of each month and dividing by the number of months

147
Q

Although it gives you a number which is close to the accurate number, do not compute YTD occupancy by adding the occupancy of each month and dividing by the number of months because…

A

but the methodology assigns the same weight to each month, instead of weighting based upon the number of DAYS in each month

148
Q

Derived based upon the aggregated raw data for each separate hotels that is a member of the comp set

A

Key Performance Indicators for the Competitive Set

149
Q

Key Performance Indicators for the Competitive are…

A

Derived based upon the aggregated raw data for each separate hotels that is a member of the comp set

150
Q

The first step when it comes to calculating Comp Set KPIs is to…

A

combine the supply, demand, and Revenue values for each hotel in the comp set

151
Q

combine the supply, demand, and Revenue values for each hotel in the comp set

A

The first step when it comes to calculating Comp Set KPIs

152
Q

The 2nd step when it comes to calculating Comp Set KPIs is to…

A

use the standard Occupancy, ADR, and RevPAR formulas. Applied each to the aggregated Supply Demand, and Revenue Numbers

153
Q

use the standard Occupancy, ADR, and RevPAR formulas. Applied each to the aggregated Supply Demand, and Revenue Numbers

A

The 2nd step when it comes to calculating Comp Set KPIs

154
Q 
#1 combine the supply, demand, and Revenue values for each hotel in the comp set 
#2 use the standard Occupancy, ADR, and RevPAR formulas.  Applied each to the aggregated Supply Demand, and Revenue Numbers
A

The traditional methodology that is used to derive Key Performance Indicators for the Comp Set

155
Q

Explain the traditional methodology that is used to derive Key Performance Indicators for the Comp Set

A 
#1 combine the supply, demand, and Revenue values for each hotel in the comp set 
#2 use the standard Occupancy, ADR, and RevPAR formulas.  Applied each to the aggregated Supply Demand, and Revenue Numbers
156
Q

The Key Performance Indicators are never based upon…

A

a straight average of the Occupancies or ADRs of each member of the comp set.

157
Q

The “aggregated” methodology does place higher weigh upon…

A

the performance of larger hotels in the comp set.

158
Q

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

A

number of rooms

159
Q

STR allows companies to choose whether…

A

to include or exclude the data for the subject hotel in the numbers for the comp set.

160
Q

The decision to to include or exclude the data for the subject hotel in the numbers for the comp set is made at…

A

the company level, NOT the hotel level.

161
Q

All companies exclude when it comes to…

A

daily data.

162
Q

Historically companies usually…

A

include the data for the subject hotel (market-share program) in the comp set

163
Q

more recently companies have…

A

decided to exclude the subject hotel’s data in the comp set, opposite to what has been done historically.

164
Q

Some people feel that having the subject data included in the comp set numbers…

A

distorts or dilutes the comp set.

165
Q

Suppose you had five hotels in your comp set and the average occupancy of the five hotels, without your hotel, calculated using the STR methodology was 70%. Your hotel had an occupancy of 80%. The comp set number with the subject hotel (your hotel) excluded would be…

166
Q

Suppose you had five hotels in your comp set and the average occupancy of the five hotels, without your hotel, calculated using the STR methodology was 70%. Your hotel had an occupancy of 80%. The comp set number with the subject hotel (your hotel) excluded would be 70%

If the comp set number INCLUDED the subject hotel then the comp set average would…

A

increase slightly (ex: 72 or 73)

167
Q

Numbers show increases/decreases in the performance of the comp set this year vs. last year

A

Percent Change Numbers for the Competitive Set

168
Q

calculated similarly to the ones for the subject property

A

Percent Change Numbers for the Competitive Set

169
Q

((TY-LY)/LY) x 100

A

Percent Change Numbers for the Competitive Set

170
Q

Calculate TY & LY KPIs, then apply percent change formulas

A

Percent Change Numbers for the Competitive Set

171
Q

Typically people will compare the actual values for the _________ of the subject hotel to the Comp Set

A

Occupancy, ADR, and RevPAR

172
Q

When comparing data for the subject hotel versus the comp set, people will be able to determine if the subject hotel has a higher or lower value for each KPI compared…

A

to the average of all the members of the Comp Set

173
Q

When comparing data for the subject hotel versus the comp set, people can also compare the percent change of the subject hotel to the ______________ to see if their hotel is __________.

A

percent changes of the comp set ; improving more or less than the comp set.

174
Q

When comparing the Percent Changes of the subject hotel to the comp set, there are…

A

instances where BOTH numbers could be negative, especially in the case of an economic downturn.

175
Q

The subject hotel and the comp set are both doing worse than last year. The lower negative numbers actually has the best percent change. Even though they are doing worse than last year….

A

you are still doing better than the comp set.

176
Q

compare the performance of the subject property to the comp set

A

Index Numbers

177
Q

(Subject Value/Comp Set Value) x 100

A

Index Numbers

178
Q

Index Numbers:

A number greater than 100 means…

A

the subject property out performed the comp set

179
Q

Index Numbers: the subject property out performed the comp set

A

A number greater than 100

180
Q

Index Numbers:

A number below 100 means…

A

the comp set out performed the subject property

181
Q

Index Numbers: the the comp set out performed the subject property

A

A number below 100

182
Q

Index numbers are available for…

A

Occupancy, ADR, and RevPAR

183
Q

Calculate KPIs for Subject and Comp Set, then apply Index Formulas; percentages

A

Index Numbers

184
Q

Occupancy, ADR, and RevPAR Index numbers tend to be…

A

relied upon heavily by the industry to evaluate the performance of hotels

185
Q

generated for multiple time periods, both month (YTD, RUNNING 12) and daily (MTD,RUNNING 28) to analyze performance for a subject hotel over various periods of time

A

Importance of Index Numbers

186
Q

Some companies relate manager’s bonuses to…

A

index numbers

187
Q

The headquarters of many hotel companies receive corporate or regional ______ listing each of their hotels with the various index numbers

A

index report

188
Q

Since RevPAR is a combination of Occupancy and ADR, there are….

A

similar mathematical hints when it comes to RevPAR Index numbers

189
Q

The RevPAR Index number less than 100 will be…

A

the approximate sum of the occupancy index number less 100 and the ADR Index number less 100

190
Q

the approximate sum of the occupancy index number less 100 and the ADR Index number less 100

A

RevPAR Index number less than 100

191
Q

If your hotel had an occupancy index of 110 and ADR Index of 95, your RevPAR index would be around…

192
Q

When deriving Index Percent Change numbers

A 
#1 Calculate the Index number THIS YEAR for Occupancy, ADR, and RevPAR
#2 Calculate the Index number for LAST YEAR using the same formulas 
#3 Calculate the percent change for the index numbers using the standard percent change formula
193
Q

Calculate the Index number THIS YEAR for Occupancy, ADR, and RevPAR

A

the first step for deriving Index Percent Change numbers

194
Q

Calculate the Index number for LAST YEAR using the same formulas

A

the second step for deriving Index Percent Change numbers

195
Q

Calculate the percent change for the index numbers using the standard percent change formula

A

the third step for deriving Index Percent Change numbers

196
Q

the first step for deriving Index Percent Change numbers is to…

A

Calculate the Index number THIS YEAR for Occupancy, ADR, and RevPAR

197
Q

the second step for deriving Index Percent Change numbers is to…

A

Calculate the Index number for LAST YEAR using the same formulas

198
Q

the third step for deriving Index Percent Change numbers is to…

A

Calculate the percent change for the index numbers using the standard percent change formula

199
Q

shows whether the relative performance of the subject hotel compared to the comp set is better this year compared to last year

A

Index Percent Change numbers

200
Q

Positive numbers are good ; Negative numbers are not

A

Index Percent Change numbers

201
Q

If your occupancy index was 115 this year and 110 last year, you would…

A

have a positive occupancy index percent change

202
Q

If your occupancy index was 105 this year and 96 last year, you would…

A

have a positive occupancy index percent change

203
Q

If your occupancy index was 90 this year and 80 last year, you would…

A

have a positive occupancy index percent change

204
Q

Index of 90 TY and 80 LY yields an Index Percent Change of…

205
Q

Calculate indexes TY & LY, then apply precent change formulas

A

Index Percent Change

206
Q

important because they show year-over-year “improvements”

A

Index Percent Change

207
Q

GM of hotel has occupancy, ADR, and RevPAR indexes that are all below 100 but Regional Manager is please because….

A

they may be looking at index percent change numbers that are ALL strongly positive. The hotel is underperforming the comp set but is catching up (improving more than the comp set average)

208
Q

Hotels could have indexes all above 100 but Regional Manger may be concerned because if the index percent change numbers are all negative…

A

it means that the comp set members on average are improving more than your hotel and could catch up.

209
Q

a very popular number and is often looked at when it comes to things like bonuses

210
Q

a valuable performance metric

A

Ranking Data

211
Q

RANKING DATA: the occupancy for the hotel is 80% and 70% for comp set occupancy

A

the 70% represents the average of all of teh hotel in the comp set

212
Q

Properties could have a __________ range of different occupancy value

A

wide or narrow

213
Q

shows the position of the hotel in the range of values for the comp set and goes beyond the KPIs and Index

A

The Ranking Information

214
Q

diplayed in the format: “X of Y”

A

Ranking Data

215
Q

What does the X in “X of Y” Ranking data format represent?

A

the subject hotel’s position

216
Q

What does the Y in “X of Y” Ranking data format represent?

A

the number of participating properties in the comp set

217
Q

the Y in “X of Y” includes…

A

the subject hotel

218
Q

Ranking data: “2 of 6”

A

the subject hotel had 2nd best value in the comp set of 6 members

219
Q

Ranking data: “1 of 6”

A

indicates a narrow range of values

220
Q

Ranking data: “3 of 6”

A

includes a broad range

221
Q

STAR Property reports include Ranking information for…

A

occupancy, ADR, RevPAR and each Percent Change

222
Q

How is occupancy ranking data determined?

A

the values for each hotel in the comp set including the subject hotel are sorted. then the position of the subject hotel is determined within the group

223
Q 
#1the values for each hotel in the comp set including the subject hotel are sorted.
#2the position of the subject hotel is determined within the group
A

determining occupancy ranking data

224
Q

percent change ranking data is…

A

also very valuable

225
Q

suppose your hotel had an opportunity percent change of 10% and your comp set had an occupancy percent change of 5%. the 5% represents….

A

the average of all of the percent changes of the hotels in your comp set

226
Q

The format for percent change ranking is…

A

the same as ranking for the KPIs.

227
Q

“2 of 6” would mean the subject hotel had…

A

the 2nd best percent change in the comp set of 6

228
Q

the subject hotel had the 2nd best percent change in the comp set of 6

229
Q

Provides additional information regarding relative year-to-year improvement of the hotels in your comp set

A

Percent Change Ranking Data

230
Q

could all be negatives as well

A

Percent change

231
Q

“1 of 6” ranking number would indicate that…

A

the subject hotel had the best percent change.

232
Q

Even though all the percent change numbers were negatives, your hotel could still…

A

have the “best” (closest to positive or lowest) negative number

233
Q

Provides more information than ranking data.

A

Bandwidth Data

234
Q

show the daily occupancy, ADR, and RevPAR of the subject hotel compared to the range of values for the comp set hotels.

A

Bandwidth reports

235
Q

If the ADR “band” is broad, there is…

A

a wide range of values among the comp set.

236
Q

If the “band” is small…

A

the range is narrow

237
Q

will provide an approximation of the high and low values of each metric on a daily basis

A

Bandwidth information

238
Q

whether or nor enough of the hotels in the competitive set have participated (submitted data) for a single time period

A

Sufficiency of Comp Set Data

239
Q

When it comes to comp set data for a single month or day…

A

there must be AT LEAST 3 or more hotels in the comp set that submit data for that specific month or day in order for that comp set data to be “sufficient.”

240
Q

does not take into consideration the number of hotels that are actually in the comp set

A

Sufficiency

241
Q

You could have 10 hotels in the comp set but if only 3 submit data for a month…

A

the data for that month would be “sufficient”

242
Q

If data for a single month or day is “sufficient,” then…

A

the related KPIs for the month or day (occupancy, ADR,RevPAR) can then appear on the STAR report.

243
Q

Percent change numbers for a single time period (month) will appear if…

A

both months are sufficient this year and last year.

244
Q

considered to be sufficient if greater than 50% of the months included in the multi-month period are sufficient

A

Multi-month numbers (YTD)

245
Q

An April YTD number would be sufficient if…

A

three of the four months are sufficient.

246
Q

Frequently hotel staff receive their STAR report and notice that…

A

comp set data is missing

247
Q

The ________ in the STAR report will help you determine the reason for the missing data.

A

Response Page

248
Q

If a monthly number is missing, check the…

A

number of hotels that reported for that specific month to see if there were more than three.

249
Q

If a percent change number is missing, check the…

A

related months this year and last year.

250
Q

If a multi-moth (YTD) number is missing, check…

A

all the months included

251
Q

Sometimes a hotel or company will…

A

report adjusted numbers (month or daily) after submitting the original data

252
Q

Any data changes are..

A

carefully checked and verified by STR

253
Q

A hotel may receive a STAR report this month with a…

A

different comp set number (for last month) than the STAR report they received during the prior month

254
Q

The reason for the change to the prior number in the STAR report is…

A

the adjusted data for one or more of the hotels in their comp set.

255
Q

occasionally a hotel in the comp set may…

A

report a supply number that is different than the number of rooms in the property times the days in the period
*there is a very small range of acceptabilities

256
Q

When the supply number is different than the number of rooms in the property times the days in the period, STR uses…

A

the Supply number based upon full availability, not the number that the hotel reports.
*this eliminates the concern that a subject hotel may have that a property in their comp set is providing inaccurate supply numbers

257
Q

There may be situations where one or more hotels in a comp set does not…

A

report data for a month or more. This assumes that the comp set is still sufficient, so there are still three or more hotels reporting.

258
Q

the supply, demand, and revenue for the participating properties is aggregated. *the “Sample” supply, demand, and revenue; the data of the participating hotels.

A

First step in methodology in the case of a non-reporting hotel

259
Q

First step in methodology in the case of a non-reporting hotel is..

A

the supply, demand, and revenue for the participating properties is aggregated. *the “Sample” supply, demand, and revenue; the data of the participating hotels.

260
Q

An occupancy and ADR is calculated based on the Sample Data; the “Sample” occupancy and data

A

Second step in methodology in the case of a non-reporting hotel

261
Q

Second step in methodology in the case of a non-reporting hotel is…

A

An occupancy and ADR is calculated based on the Sample Data; the “Sample” occupancy and data

262
Q

the supply is determined for all the hotels in the comp set, simply the total number of rooms times the days in the month

A

Third step in methodology in the case of a non-reporting hotel

263
Q

Third step in methodology in the case of a non-reporting hotel is…

A

the supply is determined for all the hotels in the comp set, simply the total number of rooms times the days in the month

264
Q

(total # of rooms in comp set) x (days in the month)

A

Supply for all the hotels in methodology in the case of a non-reporting hotel

265
Q

the “census” supply is…

A

the rooms available for all hotels, not just the participants

266
Q

the rooms available for all hotels, not just the participants

A

the “census” supply (methodology in the case of a non-reporting hotel)

267
Q

multiplied times the sample occupancy to derive the census demand

A

the “census” supply (methodology in the case of a non-reporting hotel)

268
Q

(census supply) x (sample occupancy)

A

Census Demand (methodology in the case of a non-reporting hotel)

269
Q

census demand is multiplied times the same ADR

A

census Revenue (methodology in the case of a non-reporting hotel)

270
Q

(census demand) x (sample ADR)

A

Census Revenue (methodology in the case of a non-reporting hotel)

271
Q

If you calculated the Census occupancy, ADR, and RevPAR it would be…

A

the same as the Sample Values (methodology in the case of a non-reporting hotel)

272
Q

related to comp set data

A

“consistent sample” “Same Store”

273
Q

If a subject hotel has a non-reporting property (or a property that reports intermittently) in its comp set…

A

that can possibly distort the comp set numbers

274
Q

You never know if a change in performance is…

A

related to what is actually happening with the comp set hotels or the fact that a single hotel data is missing.

275
Q

There are ways for a subject hotel to…

A

remove a non-reporting property from its comp set.

276
Q

Participation information for the comp set is displayed on…

A

the Response page of the STAR report.

CHIA (2 decks)

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