1. STAR Reports – Analyzing Property Level Performance
The SHARE Center
Supporting Hotel-related Academic Research and Education

2. Table of Contents STAR Report Foundations
Introduction to the STAR Report
Monthly STAR Reports
Weekly STAR Reports
Additional Property Reports

3. STAR Report Foundations

4. Affiliations in the Hotel Industry
Chain – the hotel brand
Parent Company – the company that includes multiple chains
Management Company – operates a hotel for another party
Owner – there are many companies that own hotels
Asset Management Company – represents the owner
Membership or Marketing Groups – provide additional benefits to hotels
Independent hotels – an important part of the industry
Copyright 2011 Smith Travel Research

5. STR Geographic Categorization
World
Continents: Americas, Europe, Mideast/Africa, Asia Pacific
Sub-continents – subsets of continents
(Americas: North Am., South Am., Central Am., & Caribbean)
Countries – based on ISO/WTO definitions
Regions – for certain countries such as US, Canada, UKM
(US: New England, Mid Atlantic, Southeast, East North Central, …)
Markets – for major cities, also non-metro areas
(US: 162 markets)
Tracts – subsets of markets
(US: 612 tracts)
Additional geo. fields: state, county, zip code, city, MSA, lat/long, user-defined
The STAR Report displays Market and Tract data of the subject hotel

6. STR Markets and Tracts
STR markets represent both metro and non-metro areas
Each market contains at least two sub-divisions called tracts (or submarkets outside North America)
There are 162 US markets and 613 tracts. Over 500 markets worldwide

7. STR Non-geographic Categorization
Scale – 7 groups, based on average ADR of entire chain
Luxury, Upper Upscale, Upscale, Upper Midscale, Midscale, Economy, & Independents (a list of all chains by scale is available)
Class – scale groups with independents included
Location: Urban, Suburban, Airport, Interstate, Resort, Small Town
Price – 5 groups, based on ADR relative to specific market
Size – based on number of rooms
Types: Extended Stay, Resort, Boutique, Casino, Golf, Ski, Spa,
Convention, Conference, All-suites, Full/Limited Service, Waterpark
Additional non-geo. fields: Age, Corporate Housing, Condotel Star Rating (WW) , User-defined (green, pet-friendly, …)
The STAR Report displays Scale and Class data of the subject hotel

8. Competitive Sets Which hotels directly compete with my property?
Usually similar hotels
Usually hotels in close proximity
Numbers can include or exclude the subject property
Hotels can have more than one comp set
May have a local comp set and a 2nd that uses a broader geographic area with more similar features, or one for WD and another for WE, or Group/Transient
The chain may have one comp set and the management company may have another, or old versus new

9. Hotel Industry Metrics 101
Supply = rooms available
Demand = rooms sold
Occupancy = demand / supply (percentage)
ADR = room revenue / demand ($)
RevPAR = room revenue / supply (per available room) ($)
Percent Change = (this year # - last year #) / last year # (%)

10. Hotel Metrics 101 Continued
Index = property # / comp set # (number > or < 100)
Penetration = Occupancy Index
Yield = RevPAR Index
Rank = property’s position among comp set for values such as ADR (i.e.: 2 of 7)
Share = property’s percent of total, for example a hotel’s Demand Share would be their percent of the total Demand versus their comp set

11. Hotel Date & Time Definitions
Week = Sunday through Saturday
Comparable Day = same day of same week last year, most daily percent changes are based on comparable days (“day to day”), versus “date to date” (MTD would be based on date to date)
Weekday = Sunday through Thursday
Weekend = Friday and Saturday

12. Date & Time Definitions Continued
MTD = from first to current day of month
YTD = from January to current month
Running #-month = last 3 or 12 months including the current month, valuable for comparing current month to longer time period or for graphing
Running 28-day = last 28 days including the current day, same advantage as above
Running 4-week = last 4 weeks of data for a specific day of the week

13. Segmentation and Additional
Revenue Definitions
Group = rooms sold in block of ten or more and corresponding revenue
Transient = rooms sold at rack, corporate, package, or government rates and corresponding revenue
Contract = rooms sold at rates stipulated by contracts including airline crews and permanent guests
Food & Beverage Revenue = revenue from any F&B establishment
Other Revenue = all revenue excluding room & F&B

14. Introduction to the STAR Report

15. What is the STAR Report?
The name “STAR” stands for “Smith Travel Accommodations Report”
The original version of this report was launched in The STAR reports are continually being fine tuned and new pages are added on a regular basis.
The STAR Reports analyze your hotel’s performance:
Occupancy
Average Daily Rate (ADR)
Revenue per Available Room (RevPAR)
Demand (Room Nights)
Room Revenue

16. What is the STAR Report? - continued
STAR Reports provide comparison to competitors:
Index numbers
greater than 100 means the subject is winning, less than 100 means the comp set is winning
Ranking information
Displayed in the format “# of #”, for example “2 of 7” means the subject has the 2nd best value in the comp set of 7
In addition to the comp sets, the STAR Reports also provide comparison to various industry segments
It is very important to compare the subject hotel to relevant industry segments
You can also compare the comp set to these industry segments

17. What is the STAR Report? - continued
STAR Reports track performance for multiple time periods
Current month, week, and day
YTD and MTD
Running 3-month, Running 12-month, 28-day, and Running 4-week
They also track year-over-year performance
TY vs. LY percent change for all metrics and indexes
There are additional pages that display specialized information

18. STAR Reports – how and when?
STAR Reports are Excel workbooks (or PDF documents) with multiple tabs/pages. They include data tables, graphs, and explanations.
STAR reports are generated on a monthly, weekly, and daily (mainly for non-NA) basis. Most are delivered to hotels via .
Monthly: on or around the 17th
Weekly: Tuesday night
Daily: each day after noon
Some companies obtain the STAR Reports from STR and post them on their internal web site

19. Why do I need the STAR Report?
Benchmarks your performance
Allows you to keep an eye on your competitors and your market
Lends perspective to good and bad performance
Aids pricing decisions, help improve profitability
Allows you to monitor the effect of your business strategies
View Supply, Demand, & Revenue changes in your market (new hotels, more travelers, more money)

20. Who am I compared to? Competitive Set: a set of 4 or more properties
Market: for example Memphis or Nashville
Market Class: subset of market with similar chain affiliated and independent hotels (6 groups)
Tract: geographic subset of market such as Memphis Airport or Nashville South
Tract Scale: subset of tract with similar chain or independent hotels (4 groups). Scales are collapsed in this segment (Luxury and Upper Up, Upscale and Upper Mid, Midscale and Economy, Independents)

21. Monthly STAR Reports

22. Table of Contents First tab of the workbook
Lists all the pages/tabs that are included
Will list two additional pages for Daily participants (most hotels)
Will list eleven additional pages for Segmentation participants (most Luxury and Upper Upscale hotels)
Would include additional pages for hotels with 2nd, 3rd, or 4th comp sets

23. Monthly Table of Contents

24. Tab 1 - Monthly Performance at a Glance
Provides a quick one-page overview of performance relative to your comp set
Displays Occupancy, ADR, and RevPAR for your property and your comp set, also Index numbers and Percent Changes
For four points in time: Current Month, Year to Date, Running 3-month, and Running 12-month
Also displays basic information for the subject property and the report settings at the top

25. Monthly Performance at a Glance

26. Tab 2 – STAR Summary
Provides a detailed comparison of your property to various industry segments and your comp set
Displays Occupancy, ADR, and RevPAR, as well as percent changes for each group
For four points in time: Current Month, Year to Date, Running 3-month, and Running 12-month
Also shows Supply, Demand, and Revenue Percent Changes; Census and Sample property and room counts; and a Pipeline overview

27. STAR Summary - Hints
Use this page to compare the subject hotel and the comp set to the industry segments nearby. If the subject is beating the comp set, but both are losing to the industry segments, it might be worth checking the validity of the comp set
Check the Census/Sample section to see the relative sizes of each industry segment
Check the Supply, Demand, and Revenue percent changes to see growth in your area. Are you getting your fair share?

28. STAR Summary

29. STAR Summary – My Property vs. Comp Set and Industry Segments
Rows display data for your hotel, 4 industry segments, and your comp set
Columns display values and percent changes for the current month, YTD, running 3 month, and running 12 month time periods
There are similar sections for Occupancy, ADR and RevPAR

30. STAR Summary – Supply, Demand, and Revenue Section
Percent changes for multiple time periods are displayed
Supply: The number of rooms in the segment multiplied by the number of days in the period.
Check to see if there are more rooms available in each area
Demand: The number of rooms sold (excluding complimentary rooms).
Check to see if there are more travelers in an area.
Revenue: Total room revenue generated from the sale (rental) of rooms.
Check to see if there is more money coming into an area.

31. STAR Summary – Census and Participation Information
Participation information is displayed for the industry segments and comp set
Census: Total number of properties/rooms in a segment
Sample: The number of properties/rooms that report data to STR
Sample %: Percentage of rooms in each segment that report data to STR
Numbers generally decrease as you move from Market down to Comp Set. Tract Scale will have the smallest number of properties after the Comp Set.

32. STAR Summary – Pipeline Information
Under construction: Ground has been broken or the owner is finalizing bids for the general contracting
Planning: Project will go out for bids, construction will start within 4 months, or an architect has been selected and plans are underway
Provides a quick snapshot of pipeline activity in the market
Check this data for changes from month to month
Pipeline data is detailed further in the STR Market Pipeline Report

33. STAR Summary - Questions
How does my property perform compared to its industry segments?
How does my property’s comp set perform compared to its industry segments?
How does the performance compare for different time periods?
What do the Supply, Demand, & Revenue Percent Changes show about an area?
Has the Pipeline data changed since last month?

34. Tab 3 – Competitive Set Report
Provides a historic comparison of your property to your comp set over time
Displays Occupancy, ADR, and RevPAR, as well as Percent Changes, Index numbers, and Ranking information
Shows 18 months of monthly data and 3 years of Year to Date, Running 3-month, and Running 12-month
Graphs monthly indexes (line graph) and RevPAR % Change (separate bar graphs for YTD and Running numbers)

35. Comp Set Report - Hints
Review the graphs to see the interaction of the different indexes over time
Check the monthly data to compare current month numbers to trends over last several months
Check the annual data to compare current numbers to longer trends
Compare the percent changes to the actual values
Compare the ranking numbers to the actual values

36. Competitive Set Report

37. Competitive Set Report – Graph of Indexes
The dotted line represents an Index of 100
The graph shows 18 months of Occupancy (blue), ADR (green=$), and RevPAR (brown) indexes by month
Allows you to see interaction of indexes over time

38. Competitive Set Report – Another Sample Graph
Here is a hypothetical scenario. In April the hotel decided to raise ADRs. They may have thought they had a loyal customer base. What happened? (The occupancy was immediately affected to a significant degree.) The hotel continued for several months and ADRs were still affected. In June the hotel lowered ADRs and Occupancy returned.
Did the hotel do the wrong thing? (No, they should be trying things like this. It did not have the intended results.) What else could they try?

39. Competitive Set Report – Monthly Data Tables
Monthly table displays 18 months of occupancy, ADR and RevPAR for your hotel versus the competitive set
Includes % change calculations, index numbers, and ranking information
(Index = Property performance / competitive set performance X 100)

40. Competitive Set Report – Multi Month Data and Graphs
Tables display 3 years of YTD, running 3-month and running 12- month data with % changes, index numbers, and ranking information
Graphs display RevPAR % change

41. Competitive Set Report - Questions
How has the comp set performance changed during the last 18 months and what seasonal trends exist?
How has the YTD, Running 3 & 12 Month performance changed over the last 3 years?
What do the Index numbers and the Index Percent Changes show?
How are the Rank numbers and the Percent Change Ranks?

42. Tab 4 – STAR Response Report
Provides monthly calendars for this year and last year, including special events
Lists your hotel and every property in your comp set with basic information and data participation detail for the last three years
Empty circles indicate monthly only; filled in circles indicate monthly and daily; no circle means no data
Check to be sure all properties in the comp set are participating consistently

43. STAR Response Report
Displays info and participation for hotels in the comp set, also months and events

44. STAR Response Report – Questions
Did all the properties in my comp set submit monthly data?
Did all the properties in my comp set submit daily data?
Were there any room changes (adds or drops) to the properties in my comp set?
Did any of the hotels in my comp set close? (You can check the Summary Page to track new hotels that are opening in your area.)

45. Tab 5 – Day of Week and Weekday Weekend Report
Drills down into daily data by each day of week and subtotals by Weekday and Weekend
Provides Occupancy, ADR, and RevPAR for property and comp set, plus Index numbers and Percent Changes
Allows you to compare DOW and WD/WE performance for Current Month, YTD, Running 3 and Running 12- month

46. Day of Week and Weekday/Weekend Report - Hints
Compare subject versus comp set performance on specific days of the week to look for opportunities to improve. The subject hotel might be comfortably beating the comp set when it comes to monthly numbers, but might be losing on specific days or on weekends versus weekdays.
Compare current month and recent (Running 3-month) performance to historic data (YTD, Running-12 month) to check for trends and market changes. Are hotels in your comp set working to improve on specific days?

47. Day of Week and Weekday/Weekend Report

48. Day of Week and Weekday/Weekend Report – Day of Week Data
Displays Occupancy, ADR, RevPAR, and % changes per each day of the week for the current month, year- to-date, running 3- month and 12-month periods

49. Day of Week and Weekday/Weekend Report – WD/WE Data
Occupancy, ADR and RevPAR shown for weekday/weekend for the current month, year-to-date, running 3 month and 12 month periods.

50. Day of Week and Weekday/Weekend Report - Questions
How did my hotel perform compared to the comp set on weekdays versus weekends?
How did my hotel perform compared to the comp set on specific days of the week?
Are there days where I am winning or losing disproportionately?
How does this performance vary over time?

51. Tab 7 – Daily Data for the Month
Provides a recap of all the daily data for the current month
Helps you reconcile the daily data to the monthly results
Graphs daily index values during the month
Should be similar to the daily data from your weekly reports although there may be minor changes due to adjustments. There are two types of adjustments:
Adjustments made to monthly data not reflected in daily data
Adjustments made to daily data after the fact that may not show up on weekly reports

52. Daily Data For Month – My Property vs. Competitive Set

53. Daily Data For Month – Graph
The graph shows daily indexes for the month for Occupancy (blue), ADR (green=$), and RevPAR (brown)
The dotted line represents an index of 100
Allows you to see interaction of the different indexes during the month

54. Daily Data For Month – Data Tables
Compares the subject property data to the comp set
Displays Occupancy, ADR and RevPAR for each day of the entire month
Includes Index numbers and ranking information
The percent change section shows these values for each metric

55. Daily Data for the Month - Questions
How did the daily data add up to the monthly numbers?
Were there specific periods during the month where I won or lost in Occupancy or ADR?
How did special events contribute to the monthly numbers and how did I compare at those times?
Are there trends when I compare the daily data for this month to the same page of prior months?

56. Segmentation and Additional Revenue pages in STAR Reports
Companies can subscribe to obtain these additional pages (tabs) in their monthly STAR reports
Most Luxury and Upper Upscale hotels receive these pages. Many Upscale and Upper Midscale hotels also receive them.
An individual hotel can subscribe separately if there company does not elect to subscribe
Additional pages are also available in weekly STAR reports

57. Tab 8 - Segmentation at a Glance
The Segmentation at a Glance page provides a quick overview for the current month and YTD
This page displays Occupancy, ADR, and RevPAR totals and a breakdown by:
Transient
Group
Contract
This page also displays related percent changes and indexes
See the prior definitions for these segments

58. Segmentation at a Glance

59. Segmentation Analysis pages
There are several pages that provide a more detailed analysis of the Segmentation data
These pages display 18 months of monthly data and 3 years of YTD, Running 3 and Running 12 month data
There are separate Occupancy, ADR, and RevPAR Analysis pages that displays values and percent changes for the subject, comp set, and Market Scale
There is an Index Analysis page that displays all the index numbers for the metrics above
There is a Ranking Analysis page that displays all the rank numbers for the metrics above

60. Segmentation pages - Hints
The Segmentation pages allow a hotel to compare their performance to their comp set and Market Scale separately by each of the different segments
The subject hotel might be beating the comp set when looking at a total monthly number, but the comp set might have a higher Group or Contract occupancy or ADR
Be sure to compare the subject hotel and the comp set to the Market Scale. Do these other groups relay upon Group and Contract business similar to the subject hotel?

61. Segmentation RevPAR Analysis

62. Segmentation Index Analysis

63. Segmentation Ranking Analysis

64. Segmentation Day of Week pages
The Segmentation Day of Week pages display Occupancy, ADR, and RevPAR values and percent changes for the subject property, the comp set, and the Market Scale for Group, Transient, Contract, and Total
Numbers are broken down for each day of the week and for total weekday versus weekend, and a total
There is one page for Current Month numbers and another page for YTD numbers
Use this page to compare segment performance on different days of the week, for example Group numbers on weekdays versus weekend.

65. Segmentation Day of Week – Current Month

66. Segmentation Day of Week – Year to Date

67. Segmentation - Questions
How do I compare to my comp set and market scale when it comes to separate Group and Transient Occupancy and ADR?
How do the Group and Transient numbers differ on the Weekday versus the Weekend, or on individual days of the week?
How many of the hotels in my comp set submit Segmentation data? If all hotels do not participate, how does this affect the numbers?

68. Additional Revenue pages
The Additional Revenue RevPAR Analysis page displays Revenue Per Available Room for Rooms, Food & Beverage, Other Revenue, and Total Revenue.
The format is the same as the Analysis pages. It displays 18 months of monthly data and 3 years of YTD, Running 3 and 12-month data and Percent Changes
The page also displays Ranking numbers that compare the subject property to the comp set
See the prior definitions for the Additional Revenue segments

69. Additional Revenue RevPAR Analysis

70. Segmentation Response
Provides monthly calendars for this year and last year, including special events
Lists your hotel and every property in your comp set with basic information and segmentation participation detail for the last three years, using the following codes:
“s” – hotel has submitted Segmentation data
“r” – hotel has submitted Additional Revenue data
“B” – hotel has submitted both Segmentation and Additional Revenue data
Check which properties in the comp set are participating, and if so, how consistently

71. Segmentation Response Report
Segmentation participation info is displayed for each hotel in the comp set

72. Additional Revenue - Questions
How do I compare to my comp set and market scale when it comes to Food and Beverage and Other Revenue?
How do the Additional Revenue numbers differ during prior months and seasons?
What do the ranking numbers show me about my F&B and Other Revenue numbers compared to my Room Revenue numbers?

73. Weekly STAR Reports

74. Intro to the Weekly STAR Reports
Almost all hotels that receive Monthly STAR Reports also obtain Weekly reports
Weekly STAR reports originally started in the late 1990’s as the industry saw the need for a more timely/dynamic look at performance benchmarking
These reports are generated on Tuesday evenings and provide data for the prior week, Sunday through Saturday
If Monday is a holiday, the reports are postponed a day

75. Table of Contents First tab of the workbook
Lists all the pages/tabs that are included
Will list five additional pages for Segmentation participants (light grey)
Would include additional pages for hotels with 2nd, 3rd, or 4th comp sets
Displays the start and end date of the current week, STR number, and date created

76. Weekly Table of Contents

77. 2 – Weekly Performance at a Glance
Provides a quick one-page overview of weekly performance relative to your comp set
Displays Occupancy, ADR, and RevPAR for your property and your comp set, also Index numbers and Percent Changes
For each day of the prior week plus a total for all seven days
Also displays Running 28-day data to compare each separate day and the current week to historic performance

78. Weekly Performance at a Glance – My Property vs. Comp Set

79. Tab 4 – Daily Data for the Month
Provides a recap of all the daily data for the current month so far, as of last week. If the week includes days from two months, it will always show the prior month.
The page also graphs daily index values
Includes a Running Month-to-Date subtotal which can serve as a “preliminary” indication of monthly results.
The Month-to-Date results can still differ from the “final” monthly data due to adjustments and if there are participation differences

80. Daily Data For Month

81. 3 – Perspective Pages
There are separate Perspective pages for Occupancy, ADR, and RevPAR
These pages provide a recap of daily data performance for the last 28 days, including Index numbers, Percent Changes, and Ranking
They include graphs of weekly numbers for the last 10 weeks for the property, comp set, and an industry segment, such as Market Scale
They include subtotals for the current Week, Running MTD, and Running 28-day time periods

82. Perspective Pages

83. 12 – Weekly STAR Response Report
Provides calendars for this year and last year, including special events
Lists your hotel and every property in your comp set with basic information and data participation detail, using the following codes:
“X” = both years
“T” = this year
“L” = last year
Segmentation versions shows prior week participation for three different types of data. Non-segmentation version shows STAR participation for prior 28 days

84. Weekly STAR Response Report
Segmentation version shows current week and three different types of data
Non-segmentation version shows four weeks of STAR data

85. Weekly Segmentation pages
A Weekly Segmentation at a Glance page summarizes the daily metrics by Group, Transient, and Contract
There are separate Analysis pages for Occupancy, ADR, and RevPAR that display Group, Transient, and Contract metrics for the subject property, comp set and Market Scale for the last 28 days. They include subtotals by day of week, current week, running 28-day, and MTD.
There is an Additional Revenue page that displays Revenue Per Available Room for Rooms, Food & Beverage, Other Revenue, and Total Revenue. The format is the same as the Analysis pages

86. Weekly Segmentation at a Glance

87. Weekly Segmentation Analysis Pages

88. Weekly Additional Revenue – F&B, Other, and Total

89. Weekly Report - Questions
How do I compare performance for each day of last week to typical performance on that day of the week?
What different time periods do the Perspective pages show me?
What can I learn from the Segmentation and Additional Revenue pages?
Why do I need to check the Weekly Response report?
How dependable are the monthly numbers on a Weekly report?

90. Additional Property Reports

91. Daily STAR Reports
Daily STAR Reports are received by most Non-North American hotels and by North American hotels in approximately 20 major markets
Daily reports are ed to hotels by the middle of each weekday in all different time zones
Reports display performance from the prior day or from the weekend on Mondays

92. Daily STAR Report Pages
There is Table of Contents page similar to other reports
There is an “At a Glance” page for just the prior day
There is a Running Month to Date page that displays Occupancy, ADR, and RevPAR metrics and percent changes for the subject hotel, the comp set and the Market Scale. This page also displays index and ranking information for the subject property versus the comp set
When the day falls early in the month, the report includes a “Last Month” page which displays numbers for the prior month

93. Daily STAR Property Report – Table of Contents

94. Daily STAR Property Report – At a Glance

95. Daily STAR Property Report – Running Month-to-Date

96. Daily STAR Property Report – Last Month

97. New Developments for STAR Reports
Bandwidth reports – shows range of metrics
RPM - RevPAR Positioning Matrix reports
Spa STAR – special report for Spas
Casino STAR – special report for casinos
MComp – assistance with comp sets
Online Create Report Tool (used by WW hotels)

98. Bandwidth Analysis Report - TOC

99. Bandwidth Analysis Report – Tab 2

100. RPM (RevPAR Positioning Matrix) Report - TOC

101. RPM (RevPAR Positioning Matrix) Report – Tab 2

102. STAR Spa Report
New - Spa related performance data

103. Questions?
Steve Hood
, extension 3315