4 How Does STR Obtain Raw Data? Most raw property sales data is directly exported from the systems of the hotel companies. This help increase the reliability of the data. Companies send STR a raw data file each month, week, and/or day.Some hotels and smaller companies enter the data on the STR web site. The web site can be used to enter monthly or daily data.
5 Sample Raw DataHere is a sample monthly raw data file that STR would receive, containing data for multiple hotels:In most cases, companies provide their own unique hotel identification without a hotel nameA daily file would look the same except for the date field, YYYYMMDD orFictitious data, of course
6 Data Error ChecksSTR performs a large volume of comprehensive error checks upon the raw data.New data is compared to prior data for consistency.There are Occupancy and ADR limits related to geography and type of hotel. STR also tracks special events that would cause unusual Occupancies and ADRs.Any exceptions are verified with the data provider before the data is accepted.
7 STR Data GuidelinesSTR 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 monthDemand (Rooms Sold) – number of rooms sold by a hotel, does not include comp rooms or “no-shows”Revenue – total room revenue generated from the sale of rooms, includes service charges not resort fees, nothing else such as F&BUniform System of Accounts available from the AHLA or HFTP
8 Key Performance Indicators From these raw data values, STR calculates the three hotel industry key performance indicators (KPIs) :Occupancy - %Average Daily Rate (ADR) - $Revenue per Available Room (RevPAR) - $ important metric, based upon all rooms, some feel like it is better measurement of profitability
9 Occupancy = Demand / Supply DefinitionThe percentage of available rooms that were sold during a specific time period.CalculationOccupancy is calculated by dividing the demand (number of rooms sold) by the supply (number of rooms available). This is a percentage.Occupancy = Demand / Supply
10 Monthly Occupancy - Formula BCDEFG1SupplyDemandRevenue(Formula)Occupancy (%)2Jan-1031002345198765C2 / B2 * 10075.63Feb-1028002002175432C3 / B3 * 10071.54Mar-101776175012C4 / B4 * 10057.35Apr-1030002468234567C5 / B5 * 10082.36May-102987312345C6 / B6 * 10096.4You could multiply times 100 or format as a percentage
11 ADRDefinitionA measure of the average rate paid for rooms sold during a specific time period.CalculationADR is calculated by dividing the room revenue by the demand (rooms sold). This is a dollar amount.ADR = Revenue / Demand
12 Monthly ADR - Formula A B C D E F G 1 Supply Demand Revenue (Formula) 2Jan-1031002345198765D2 / C284.763Feb-1028002002175432D3 / C387.634Mar-101776175012D4 / C498.545Apr-1030002468234567D5 / C595.046May-102987312345D6 / C6104.57You could format as a “$” or as a number with 2 decimals
13 RevPAR = Revenue / Supply DefinitionA measure of the revenue that is generated by a property in terms of each room available. This differs from ADR because RevPAR is affected by the amount of unoccupied rooms, while ADR only shows the average rate of rooms actually sold.CalculationRevPAR is calculated by dividing the room revenue by the total number of rooms available. This is a dollar amount.RevPAR = Revenue / Supply
14 Monthly RevPAR – Formula BCDEFG1SupplyDemandRevenue(Formula)RevPAR ($)2Jan-1031002345198765D2 / B264.123Feb-1028002002175432D3 / B362.654Mar-101776175012D4 / B456.465Apr-1030002468234567D5 / B578.196May-102987312345D6 / B6100.76You could format as a “$” or as a number with 2 decimals
15 Percent Change = (This Year – Last Year) / Last Year * 100 Percent ChangesDefinitionThe comparison of This Year (TY) numbers vs. Last Year (LY) numbers, 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.CalculationThe 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 * 100Remember the parentheses!
16 Demand Percent Change A B C D E F G 1 This Year Last Year ABCDEFG1This YearLast YearPercent Change2Demand(Formula)3Jan-1023452456(B3-D3)/D3*100-4.54Feb-1020022112(B4-D4)/D4*100-5.25Mar-1017761750(B5-D5)/D5*1001.56Apr-102468(B6-D6)/D6*1005.27May-1029872555(B7-D7)/D7*10016.9You could multiply times 100 or format as a percentage
17 Hint - % Changes for Raw Values The Percent Changes for raw values such as Supply, Demand, and Revenue are valuable bits of informationSupply Percent Change shows whether there are more or less rooms this year versus last yearDemand Percent Change shows whether there are more or less rooms sold (guests spending the night) this year versus last yearRevenue Percent Change shows whether there is more or less money being made by the hotel or hotels (and therefore being spent by those guests)
18 ADR Percent Change A B C D E F G 1 2010 2009 Percent Change 2 ADR ABCDEFG120102009Percent Change2ADR(Formula)3Jan-1084.7681.93(B3-D3)/D3*1003.44Feb-1087.6388.85(B4-D4)/D4*100-1.45Mar-1098.54100.07(B5-D5)/D5*100-1.56Apr-1095.0495.24(B6-D6)/D6*100-0.27May-10104.57116.93(B7-D7)/D7*100-10.6You could multiply times 100 or format as a percentage
19 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.
20 Daily vs. Monthly DataThe formulas for daily KPIs and Percent Changes are the same as for monthlyThe date fields are different:– monthly– dailyMost daily percent changes are based upon comparable days, in other words the same day of week with the closest dateThu is compared to ThuSat is compared to Sat
21 Multiple Time Periods Multiple time periods for monthly data include: Year-to-Date (YTD)Running 12-Month (12-Month Moving Avg)Running 3-MonthMultiple time periods for daily data include:Current WeekMonth-to-Date (YTD)Running 28-Day (different than Running 4-wk)The metrics for all of these time periods are based upon the aggregated raw data
22 YTD Supply, Demand, & Revenue ABCD1SupplyDemandRevenue2Jan-10310023451987653Feb-10280020021754324Mar-1017761750125Apr-10300024682345676May-1029873123457(Formula)sum(B2:B6)sum(C2:C6)sum(D2:D6)8May YTD1510011578You can use the SUM function to aggregate the raw values
23 YTD Occupancy, ADR, & RevPAR ABCDEFG1SupplyDemandRevenueOccupancyADRRevPAR2Jan-10310023451987653Feb-10280020021754324Mar-1017761750125Apr-10300024682345676May-1029873123457YTD151001157876.794.6772.598(Formula)C7/B7*100D7/C7D7/B7Aggregate raw values, then apply same formulas as before
24 Other Multiple Time Periods The Raw data for other monthly and daily time periods are calculated the same way by aggregating the raw data for every month or day in the entire time periodThe KPIs (calculated metrics of Occupancy, ADR, and RevPAR) for multiple time periods are always calculated from the aggregated raw dataNumbers for multiple time periods never use averages of monthly or daily values. (Some people mistakenly compute YTD occupancy by adding the occupancy of each month and dividing by the number of months.)Aggregating accounts for different days in different months
25 Hint – Multiple Time Periods Current Month numbers show the performance for a single month and YTD numbers show how performance is unfolding for the current year.Running 3-Month numbers show a little more of a performance trend instead of just the Current Month number.Running 12-Month numbers show a longer performance trend. These numbers can be helpful at the beginning of the year when the YTD number only includes a small number of months. Running 12- Month numbers also remove seasonality effects.
26 Percent Changes for Multiple Time Periods The percent changes for multiple time periods are based on the aggregated values or the calculated metrics (which are derived from the aggregated values) for this year compared to the same values for last yearPercent changes for daily data are based upon groups of comparable days, with the exception of Month-to- Date numbers which are based on a date-to-date comparison
28 Full Availability – Subject Hotel Occasionally a subject hotel may report a Supply number that is different than the number of rooms in the property times the days in the periodIf this happens in the case of the subject hotel, their STAR report will always reflect the Supply and the corresponding Occupancy based upon the number the hotel actually reported.STR does not change the Supply number of the subject hotel on their own STAR report“Full Availability” is an advanced concept
29 Full Availability Example - Subject ABCDEFGH1Date# RmsActual SupplyReport-ed SupplyDemandRevenueFormulaOccu-pancy2Jan-1010031002345198765D2 / E2 * 10075.63Feb-10280027442002175432D3 / E3 * 10073.04Mar-1029451776175012D4 / E4 * 10060.35Apr-10300027002468234567D5 / E5 * 10091.46May-102987312345D6 / E6 * 10096.4Occupancy for Subject based on reported Supply, not Actual
30 Weekday/Weekend and Day of Week Data vs. Monthly Data Sometimes a hotel will submit daily data that does not add up exactly to the monthly numberThere are good reasons for this; some systems do not accept adjustments to daily data, only to the month numbersSTR will slightly adjust the daily numbers based upon the monthly data when they are aggregated to generate day of week and weekday/weekend numbersUse percentages for each day, ensures WD/WE adds up
31 Percent Changes and WD/WE or Day of Week Data Weekday/Weekend (WD/WE) Percent Changes compare all the aggregated weekday or weekend data (per month or other time period) this year to the same data last yearDay of Week (DOW) Percent Changes compare all the aggregated daily data for a single day (per month or other time period) this year to the same data last year
32 Running 4 Week DataThe Weekly Reports compare individual daily data for the Current Week to the Running 4 Week numbersThe Running 4 Week numbers are the aggregated data for a single day for the last 4 weeks, i.e.: the last 4 MondaysA hotel can compare their Monday performance metrics to the average of the last 4 Mondays to see if they are doing better or worse on a single day of the week
33 Questions Briefly describe how STR obtains raw property data Identify the various metrics used by the hotel industryExplain how metrics are calculated when it comes to multiple time periodsCompare the differences between how monthly and daily data is treatedUse Excel and sample raw data to demonstrate the formulas used to calculate the various numbers
35 Key Performance Indicators for the Competitive Set Numbers for the comp set are derived based on aggregated raw data for each separate hotelSupply, Demand, and Revenue numbers are the combined values of each hotel in the comp setOccupancy, ADR, and RevPAR numbers are based upon the aggregated Supply, Demand, and Revenue
36 Including or Excluding the Subject Hotel in the Competitive Set STR allows companies to choose whether to include or exclude the data for the subject hotel in the numbers for the comp setHistorically companies usually included the data for the subject hotel, but more recently most companies have decide to exclude the subjectSome people feel that having the subject data included in the comp set numbers distorts or dilutes the comp set
37 Comp Set Supply, Demand, & Revenue ABCDE1PropertyDateSupplyDemandRevenue211111May-103100222218765432222232552468198765433333294523452233445444442790198716543265555341032102987657Comp Set15500122328(Formula)sum(C2:C6)sum(D2:D6)sum(E2:E6)Aggregate raw values for each member of the comp set
38 Comp Set Occupancy, ADR, & RevPAR ABCDEFGH1PropertyDateSupplyDemandRevenueOccupancyADRRevPAR211111May-103100222218765432222232552468198765433333294523452233445444442790198716543265555341032102987657Comp Set155001223278.987.8069.298(Formula)D7/C7*100E7/D7E7/C7Apply KPI formulas to aggregated comp set data
39 Percent Change Numbers for the Competitive Set Percent Change numbers for the comp set are calculated similarly to the ones for the subject property(This Year – Last Year) / Last Year * 100These numbers show increases or decreases in performance this year versus last year
40 Comp Set Occupancy, ADR, & RevPAR Percent ChangesABCDEFGHIJK1This YearLast YearPercent Changes2DateOccu-pancyADRRev-PAROccupancyRevPAR3Comp SetMay-1078.987.8069.2982.693.8677.50-4.4-6.5-10.64(Formula)(C7-F7)/F7*100(D7-G7)/G7*100(E7-H7)/H7*100Calculate TY & LY KPIs, then apply % Change formulas
41 Index NumbersThe Index numbers compare the performance of the subject property to the comp setSubject Value / Comp Set Value * 100A number greater than 100 means the subject property outperformed the comp set and a number below 100 means the comp set outperformed the subject propertyIndex numbers are available for Occupancy, ADR, RevPAR and the Percent ChangesIndex numbers are percentages, multiple * 100 or format as %
42 Importance of Index Numbers Index numbers tend to be relied upon heavily by the industry to evaluate the performance of hotelsOccupancy, ADR, and RevPAR Index numbers show the current performance of the subject hotel compared to the comp setThe index percent change numbers for these same KPIs show if the subject hotel is improving compared to the comp setThe headquarters of many companies receive corporate index reports listing each hotel with their index numbersSome companies relate managers’ bonuses to index numbers
43 Occupancy, ADR, & RevPAR Indexes ABCDEFGHIJSubject PropertyComp SetIndex Numbers1Occu-pancyADRRev-PAROccupancyRevPAR2May-1096.4104.57100.7678.987.8069.29122.1119.1145.43(Formula)B2/E2*100C2/F2*100D2/G2*100Calc KPIs for Subject & Comp, then apply Index formula
44 Index Percent Change Numbers First you calculate the Index numbers this year for Occupancy, ADR, and RevPARNext you calculate the Index numbers for last year using the same formulasThen you can calculate the Percent Changes for the Index numbers, this shows whether the Subject is improvingIndexes could be below 100 TY, but if Percent Changes are positive, Subject is improvingIndex of 90 TY and 80 LY yields an Index % Chg of 12.5%
45 Occupancy, ADR, & RevPAR Index Percent ChangesABCDEFGHIJ1Index Numbers2This YearLast YearPercent Change3DateOccu-pancyADRRevPAROccupancy4May-10122.1119.1145.499.8124.6124.422.3-4.416.95(Formula)(B2-E2)/E2 *100(C2-F2)/F2 *100(D2-G2)/G2 *100Calc indexes TY & LY, then apply % Change formulas
46 Hint - Index Percent Changes Here is a hypothetical situation - a subject hotel has Occupancy, ADR, and RevPAR indexes that are all below The General Manager gets a call from the Regional Manager who says, “great job”. Why?The Regional Manager may be looking at index percent change numbers that are all strongly positive. So the subject hotel is under performing the comp set, but the subject hotel is catching up (improving more than the comp set average).The opposite scenario could also be true.
47 Ranking Data – What is it? STAR Property Reports include Ranking information for Occupancy, ADR, RevPAR and each Percent Change, comparing the subject hotel to the comp setThe Ranking data would be in the format of “X of Y”, where X is the subject hotel’s position and Y is the number of participating properties in the comp setFor example “2 of 7” would mean the subject hotel had the 2nd best value in the comp set of 7Ranking data gives you more than just the KPIs & Indexes
48 Occupancy Ranking Data – How? The values for each hotel in the comp set including the subject hotel are sortedThen the position of the subject hotel is determined within the groupHere are sample values of the subject and the comp setSTR#1234234534564567 (Subject)56786789Value878583827875Rank1 of 62 of 63 of 64 of 65 of 66 of 6Subject had the 4th highest occupancy in the comp set of 6
49 Subject had the 2nd highest ADR (with 2 others) in comp set ADR Ranking Data – TiesJust in case two or more hotels are tied when it comes to a specific value, i.e.: they have the same exact number, then each hotel would get the same numberAll hotels below with a $95 ADR get a rank of “2 of 6”:STR#1234234534564567 (Subject)56786789Value$97$95$92$88Rank1 of 62 of 65 of 66 of 6Subject had the 2nd highest ADR (with 2 others) in comp set
50 Multiple Time Periods and Comp Set Data Multiple time periods are handled the same way for a comp set as they are handled for a subject propertyThe Raw data for monthly and daily time periods are always aggregated and then the calculations are applied to the aggregated data
51 Sufficiency of Comp Set Data If a Comp Set has 3 or more participating hotels (submitting actual data) other than the subject, then that comp set is defined as “Sufficient”. The numbers for the comp set can then appear on the STAR reportPercent change numbers will appear if the comp set had sufficient data this year and last yearMulti-year numbers are considered to be sufficient if greater than 50% of the months or day included in the multi-year period are sufficient
52 Non-Reporting Hotels in the Comp Set There may be situations where one or more hotels in a comp set does not report data for a month or moreFirst, the Supply, Demand, and Revenue for the participating properties is aggregated. This is the “Sample” Supply, Demand, and Revenue.Next, an Occupancy and ADR is calculated based on the Sample data
53 Non-Reporting Hotels in the Comp Set - continued Then the Supply is determined for all hotels in the comp set, simply the number of rooms times the days in the month. This is referred to as the “Census” Supply.This Supply number is multiplied times the Sample Occupancy to derive the Census DemandThe Census Demand is multiplied times the Sample ADR to derive the Census Revenue
54 Non-Reporting Hotel Example ABCDEFGH1PropertyDate# RmsSupply (Actual)DemandRevenueOccu-pancyADR211111May-10100310022221876543222221053255246819876543333395294523452233445444449065555110341032102987657Comp Set Sample #s410127101024590852880.688.688Comp Set Census #s50015500124949(Formula)C7 * 31D8 * G7 /E8 * H7Calc Occ & ADR based on Sample, multiply * Total Supply
55 “Consistent Sample” related to Comp Set data If a subject hotel has a non-reporting property (or a property that reports intermittently) in its’ comp set, that can possibly distort the comp set numbers. Or hotels that participate this year but not last year, or visa versa.You never know if a change in performance is related to what is actually happening with the comp set hotels or the fact that a single hotel’s data is missingThere are ways for a subject hotel to remove a non- reporting property from its’ comp set(Participation information for the comp set is displayedon the Response page of the STAR Report)
56 Full Availability and Comp Sets Occasionally a hotel in the comp set may report a Supply number that is different than the number of rooms in the property times the days in the periodIn those cases, STR uses the Supply number based upon full availability, not the number that the hotel reportsAdvanced concept
57 Full Availability Example ABCDEFGHI1PropertyDate# RmsActual SupplyReported SupplyDemandRevenueOccu-pancy (Full)Occu- pancy (Report)211111May-1010031002222187654322222105325533402468198765433333952945290023452233445444449027902199198716543265555110341032102987657Comp Set15500(14949)1223278.9(81.8)8(Formula)sum (D2:D6)sum (F2:F6)sum (G2:G6)D7/F7 *100Formulas are based upon Actual Supply, not Reported
58 QuestionsDemonstrate how KPIs and percent changes are calculated when it comes to comp set dataDemonstrate how indexes and ranking data are calculated comparing the subject to the comp setExplain the significance of indexes to the hotel industryExplain the effect of non-reporting hotels in a comp setWhen will different types of comp set data not appear on a STAR report?
60 Industry Data BasicsSTR uses a variety of segments to analyze performance of the hotel industryThere are geographic (market, tract) and non-geographic (scale, location) categorizationsSTAR Reports and corporate data files will frequently compare a subject hotel to nearby industry segmentsPublications and Destination Reports will also display the performance of industry segments
61 The Methodology for US Industry Data versus Comp Set Data The methodology used for arriving at US industry numbers is different than the one for arriving at comp set numbersActual data is used for hotels that participate and “modeled data” is used for hotels that do not participate. (This is why STR includes non-participants in their Census database of hotels.)The Actual and Modeled data are aggregated for all hotels in each industry segment in order to arrive at performance numbers
62 Modeling of US Industry Data STR estimates the data of non-participating hotels to help increase the accuracy of industry dataData for a non-participant is estimated based on participating hotels that are closest to the non- participant based on geography and price levelNo modeled data is ever used in the Comp Set numbersSTR uses a different method for non-US industry numbersPossible to explain technical procedure used for modeling
63 Key Performance Indicators for Industry SegmentsThe Actual and Modeled data are aggregated for all hotels in each industry segment (market, tract, …)Supply, Demand, and Revenue numbers are the combined values of each hotel in the industry segmentThe Key Performance Indicators (Occupancy, ADR, and RevPAR) are based upon the aggregated Supply, Demand, and Revenue numbers
64 Industry Supply, Demand, & Revenue ABCDEFG1PropertyDate# RmsType of DataSupplyDemandRevenue211110May-10100Actual310022221876543222201053255246819876543333095Modeled294523452233445444409027902456234567655501103410321029876576660852635251120123487770115356530123123459Tract Scale700217001822410(Formula)sum (E2:E8)sum (F2:F8)sum (G2:G8)Accumulate Actual & Modeled Supply, Demand, & Revenue
65 Industry Occupancy, ADR, & RevPAR ABCDEFGHIJ1PropertyDate# RmsType of DataSupplyDemandRevenueOccu-pancyADRRev-PAR211110May-10100Actual310022221876543222201053255246819876543333095Modeled294523452233445444409027902456234567655501103410321029876576660852635251120123487770115356530123123459Tract Scale700217001822484.090.9176.3410(Formula)F9/E9 *100G9/F9G9/E9Apply KPI formulas to the accumulated raw data
66 Percent Change Numbers for Industry SegmentsPercent Change numbers for industry segments are calculated exactly like the ones for the comp set or the subject property(This Year – Last Year) / Last Year * 100These numbers show increases or decreases in performance this year versus last year
67 Multiple Time Periods and Industry Data Multiple time periods are handled exactly the same for an industry as for a comp set or a subject propertyThe Raw data for the monthly and daily time periods are always aggregated and then calculations are derived based upon the aggregated data
68 Supply Numbers Over Time The number of rooms available for an industry segment or any group of hotels, including a comp set, can vary over time due to:New hotels opening - Hotels closingRoom additions - Room dropsNew Supply=Orig Supply+(Opens+Adds)–(Closes+Drops)The number of rooms available for segments such as scale, class, or brand can vary over time due to:Conversions in - Conversions outNew=Orig+(Opens+Adds+CvIns)–(Closes+Drops+CvOuts)
69 Seasonally Closed Hotels Some hotels close for one or more months out of a yearIn the US, there are 1,460 seasonally closed hotelsMany are in resorts areas such as beach or ski/mountain locationsMost are closed during some of the winter months, although a few are closed during the summerSupply numbers for industry segments will also be affected by seasonally closed hotels
70 Sufficiency of Industry Data If an Industry segment has 4 or more hotels that submit actual data, then that segment is defined as “Sufficient”, similar to the comp set rule (3 required)The numbers for that industry segment can then appear on STAR reports and elsewhere. Industry data will not appear when the segment is insufficient.Multi-year numbers are considered to be sufficient if greater than 50% of the months or day included in the multi-year period are sufficient
71 “Consistent Sample” related to Industry Segment data If an industry segment has a non-reporting property (or a property that reports intermittently), that can possibly distort the performance numbers. Or a hotel that participates this year and not last year, or visa versa. Or hotels that open or close during the date range you are looking at.You never know if a change in performance is related to what is actually happening among the hotels in the industry segment or the fact that a single property’s data is missing(You can run a Trend report on a specific group of reporting hotels to analyze performance on a consistent sample.)
72 Leap Year MethodologyThe STR methodology for Leap Year assumes that February 29th never exists.If this methodology was not used, there would be an increase in Supply, Demand, and Revenue in Februarys during leap years.All raw February monthly data (property, comp set, and industry) for leap years is multiplied times 28/29 as if this month only had 28 days.
73 Full AvailabilityOccasionally a hotel in the industry segment may report a Supply number that is different than the number of rooms in the property times the days in the periodWhen calculating industry data, STR always uses the Supply number based upon full availability, not the number that the hotel reportsAdvanced concept
74 Questions Define an industry segment Demonstrate how KPIs and percent changes are calculated when it comes to industry segmentsBriefly explain how US industry data is “modeled”When will different types of industry data not appear on a STAR report?
76 What is meant by Corporate Data? Individual hotels receive STAR reports with data for their subject property compared to their comp set and relevant industry segmentsThe regional managers and the staff at corporate headquarters of these hotels are also very interested in this dataMost hotel companies receive volumes of corporate data. These could be chains, management companies, and ownership groups.
77 What do Companies Receive? Most corporate headquarters receive reports listing each of their hotels and the various performance metrics, referred to as “Index Reports”. These reports may be subtotaled by various fields (region, brand, operation)Some companies receive “Summary Reports” aggregating data for their hotels based upon various subtotal groups.In addition to reports, companies also receive data files, so they can analyze this data and merge it with internal information
78 Who do Companies Compare Their Hotels to? Most commonly, companies compare their hotels to the corresponding comp setsSometimes they compare their hotels to the corresponding industry segment of the subject property, such as a Market or Tract ScaleThey may compare total Brand numbers to the corresponding Scale total, or to a group of other brands, referred to as a “Corporate Comp Set”
79 Corporate Aggregations Hotels can be grouped based upon common fields such as Brand, Region, or Operation (Corporate versus Franchise)Hotels can also be grouped based upon user-defined variables, such as Sales Territories, Regional Managers, or Hotel TypesThe raw hotel and comp set data can be aggregated using various methods, i.e.: Standard Weighting or Portfolio Weighting
81 US versus WW Industry Segments In the US and in North America, probably the most popular industry segment to compare hotels to are Market Scale or Tract ScaleThe Scale category is totally related to chain hotelsOutside North America, since there are much less chain hotels, Class is used instead and the popular segments are Market Class and Tract Class
82 Non-Reporting Hotels and Industry Data The US is the only country where property data is modeled for non-reporting hotels. The numbers for Industry segments in the US are based on a combination of Actual and Modeled data.Outside the US, the numbers for Industry segments are solely based on Actual data of participating hotels. The methodology used to derive metrics for industry segments is exactly the same as for competitive sets. The Occupancy & ADR of participating hotels are used to estimate non-participating hotels.
83 WW Participation Issues In some areas of the world, STR participation is still growing and the number of hotels submitting data may be smallerWhen requesting data back in time, you need to check past participationThere may be enough hotels to pass sufficiency tests for recent months, but not back in timeAlso keep participation in mind when you are looking at year-over-year change to be sure it is not affected by new hotels starting to submit data
84 Currencies and Exchange Rates Outside the US, most hotels want to see their STAR reports in their local currencySTR obtains daily and monthly exchange rates for all currencies in the world (at least the countries that have hotels) from Oanda (Daily data is converted using the daily exchange rateMonthly data is converted using the daily exchange rate for the last day of the month
85 Exchange Rates and Multiple time periods It is important to understand how exchange rates are handled when it comes to multiple time periods for monthly data, i.e.: YTD and Running 3 or 12 month numbersRaw data is aggregated using the exchange rate for each individual month and then the KPIs are derived. This methodology accounts for changing exchange rates.Multiple time periods for daily data, i.e.: weekly or Running 28-day numbers are calculated the same way, using the exchange rate for each individual day
86 Currencies and Corporate Data When companies obtain data from STR, they may request the numbers in multiple currencies, i.e. US Dollars, Euros, and Local.Analyzing the performance of hotels in a company spread over multiple countries can sometimes be distorted by fluctuating exchange rates.STR produces some data and reports for companies in a “constant currency”. This methodology applies a single exchange rate i.e.: the rate from January of the current year to the numbers for every month.