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Introduction to Revenue Management

Week 1
Introduction to Revenue Management
HFR603BM Hotel Finance & Revenue
• Revenue Management
RM definition
RM processes
Conditions necessary for RM
• Financial reporting
Revenues and expenses
Profit and loss statements
• Hotel Industry Analytics Foundations
Affiliations and operation types
Geographical categories
Classifications
Competitive set
2
Weekly Outline
a) Critically evaluate hotel, financial and industry data analytics information for improved
business decision-making.
b) Recommend strategies to achieve revenue targets.
c) Critically analyse the operational requirements of revenue management.
3
Subject Learning Outcomes

Introduction of Hotel Revenue
Management

HFR603BM Hotel Finance and Revenue
“Revenue Management is the art and science of
predicting real-time customer demand at the
market level and optimizing price and availability of
products.”
Defining Revenue Management
5
Cross, R.G. (1997) Revenue Management: Hard-core Tactics for Market Domination, Broadway Books
Selling the Right Room,
at the Right Price,
to the Right Customer,
at the Right Time*,
for the Right Length of Stay,
through the Right Distribution Channel,
with the most cost-efficiency.
Definition of Revenue Management
6
* Cross, R.G. (1997) Revenue Management: Hard-core Tactics for Market Domination, Broadway Books
1960’s – Airline deregulation in the U.S.
• Discounting practices
• Inventory management
1980’s – Marriott, an early adopter
• Same as above
• Market segmentation
Crises (see next slide)
• Heavy discounting
• OCC% vs ADR
Post-crises – Realisation of RM
• Focus switches on ADR & RevPAR
• Guests’ perception vs Hotel business
Today – all types of industries
History of Revenue Management
7
Cross, R. G., Higbie, J. A. and Cross, D. Q. (2009) “Revenue management’s renaissance: A rebirth of the art and science of profitable revenue generation.” Cornell
Hospitality Quarterly
50.1, pp. 56-81.
Crises and ADR recovery
8
CoStar Realty Information Inc. (2021),
Competitive
Benchmarking
Market
Segmentation
Demand
Strategic Pricing Forecasting
Distribution
Channel
Management
Product Definition
REVRoadMap®
9
Adapted from Buckhiester (1995), in Forgacs (2010). Revenue Management – Maximizing Revenue in Hospitality Operations. AHLEI
Perishable product • The opportunity for revenue is fixed in time
Relative fixed capacity • Businesses cannot easily increase their product capacity
Segmentable markets • The ability to have different target markets
High fixed cost / low • Businesses can control gross profits per product
variable cost structure
Advanced reservations
• The ability to sell products in advance
Variable demand • The seasonality of the products
Conditions necessary for Revenue Management
10
Kimes, S. E. (1989). The basics of yield management. Cornell Hotel and Restaurant Administration Quarterly, 30(3), 14-19

Price

Few
Many

Duration
Controlled
Quadrant 1
Movie theaters
Convention centers

Quadrant 2
Hotels
Airlines
Car rental

Uncontrolled
Quadrant 3
Restaurants
Golf courses
Internet providers

Quadrant 4
Continuing care
Hospitals

Duration & Price levers
11
Kimes, S. E., & Chase, R. B. (1998). The strategic levers of yield management. Journal of service research, 1(2), 156-166.

Product
•What are you selling?

Place
•Where are you selling it?

Price
•At what price?

Promotion
•How are you selling it?

People
•Who are involved in the sale?

Processes
•What are the step-by-step to sell it?

Physical Evidence •What shows to your consumer the sale?
7Ps of Marketing & Revenue
12
Customer-centric
• A revenue management
philosophy that places
customer gain ahead of shortterm revenue maximization in
revenue management decision
making.
Profit-centric
• A revenue management philosophy
that places short-term revenue
maximization ahead of customer gain
in revenue management decision
making.
Approaches to Revenue Management
13
Tranter, K., Stuart-Hill, A., & Parker, T. J. 2009. An introduction to revenue management for the hospitality industry–principles and practices from the real world.
Financial Reporting
HFR603BM Hotel Finance and Revenue

Term
Definition
Reported on the

Asset
A resource of a business
Balance Sheet

Liability
An obligation of a business
Balance Sheet

Equity
The difference between assets and
liabilities

Balance Sheet

Revenue
An increase in assets resulting from
selling a good or providing a service

Income Statement

Expense
A decrease in assets resulting from
selling a good or providing a service

Income Statement

Key terms
15
Warren, C.S., Reeve, J.M., & Duchac, J.E. (2018) Managerial Accounting. Cengage Learning, 14th ed.
The accounting equation
Economic
resources
Claims on
economic
resources
Assets Liabilities Owner’s
equity
16
Warren, C.S., Reeve, J.M., & Duchac, J.E. (2018) Managerial Accounting. Cengage Learning, 14th ed.
The extended accounting equation
Assets Liabilities Net
income
Owner’s
capital
Owner’s equity
Revenues – expenses
17
Warren, C.S., Reeve, J.M., & Duchac, J.E. (2018) Managerial Accounting. Cengage Learning, 14th ed.
Income Statement (Profit and Loss Statement)
The income statement may be referred to as the profit and loss statement while the
income is often called
profit or loss, income or even net income.
Total comprehensive income includes
other revenues, expenses, gains and losses that are
considered to provide a more complete picture of a business
increase (or decrease) in
economic benefits.
Sections of the Income Statement
• Revenues/Sales
• Operating Expenses
• Capital Expenses of Fixed Costs
• Net Income (Profit or Loss)
Net
Revenues Expenses income
18
Warren, C.S., Reeve, J.M., & Duchac, J.E. (2018) Managerial Accounting. Cengage Learning, 14th ed.
19
Example (USALI 11th)
https://www.hftp.org/i/downloads/USALI11Statements.pdf
20
https://marriott.gcs-web.com/annual
Example
21
https://group.accor.com/en/finance/events-and-announcements/annual-and-half-yearly-information
Example
Source: STR
© 2022 CoStar Realty Information, Inc.
Hotel Industry Analytical
Foundations
HFR603BM – Hotel Finance & Revenue
Source: STR
© 2022 CoStar Realty Information, Inc.
• clearly displayed to the public on the building and in all
Brand interactions with the customer.
• group consisting of multiple chains (parent companies have
Parent Company diverse chains, some few or many, worldwide, always changing).
• operates a hotel for another party, where it receives payment or a
portion of profits.
Management Company
(Hotel Operating Company)
Owner
• there are many companies that own multiple hotels.
• represents the owner in the operation of a hotel, newer, different
than Management Companies.
Asset Management
Company
Multiple Affiliations for a Single Hotel
23
Source: STR
© 2022 CoStar Realty Information, Inc.
Players in the Hotel Industry
Parent Brands Hotel Operating Company
Company
Owner
Company
Asset
Management
24
Source: STR
© 2022 CoStar Realty Information, Inc.

Top Parent Companies in the World

Company
WW Props
WW Rooms

Marriott International
7,676
1,423,926

Hilton Worldwide
6,741
1,056,174

IHG Hotels & Resorts
5,821
833,549

Wyndham Hotels & Resorts
8,661
787,446

Accor Hotels
5,065
730,030

Choice Hotels International, Inc.
6,946
569,246

Huazhu Hotels Group
3,993
431,503

Best Western Hotels & Resorts
3,800
310,650

Hyatt
1,173
282,645

Jin Jiang International (Holdings) Co., Ltd.
1,805
208,288

Radisson Hotel Group
1,209
189,083

G6 Hospitality
1,414
117,128

Home Inns Group
891
113,719

Groupe du Louvre
1,311
110,767

7 Days Inn
1,020
101,005

Whitbread Group
876
89,508

Vienna Hotels Group
562
86,232

OYO Rooms
1,501
76,271

Minor International
479
72,203

Extended Stay Hotels
654
71,900

Toyoko Inn Co., Ltd.
311
67,317

GreenTree Hospitality Group Ltd.
706
64,692

Westmont Hospitality Group
679
60,895

APA Hotels & Resorts
260
58,407

Meliá Hotels
193
56,637

As of Year-End 2021

Top Chains in the World

Chain
WW Props
WW Rooms

Holiday Inn Express
3,005
315,316

Hampton by Hilton
2,758
297,267

Hilton
588
218,015

Holiday Inn
1,191
215,606

Marriott
582
203,164

Courtyard
1,248
186,141

Super 8
2,683
162,487

JI Hotels
1,310
159,001

ibis
1,228
154,239

Sheraton Hotel
425
150,320

Hanting
1,400
146,075

DoubleTree by Hilton
627
142,984

Hilton Garden Inn
934
136,815

Best Western
1,817
133,828

Quality Inn
1,764
133,018

JinJiang Inn
1,049
124,552

Ramada
867
124,240

Fairfield Inn
1,195
118,175

Mercure
878
116,783

Days Inn
1,500
110,684

Best Western Plus
1,236
110,496

Crowne Plaza
397
108,730

Chains and Parent Companies
25
Source: STR
© 2022 CoStar Realty Information, Inc.

Accor Hotels & Top Countries

Country
WW Props
WW Rooms

France
1,667
149,443

China
487
89,815

Brazil
321
51,269

Germany
346
47,154

Australia
315
42,128

United Kingdom
257
35,817

Indonesia
125
25,479

United Arab Emirates
72
20,902

Thailand
80
18,345

Poland
85
13,929

 

Hilton WW & Top Countries

Country
WW Props
WW Rooms

United States
5,301
745,908

China
394
90,437

United Kingdom
162
34,420

Canada
161
25,326

Mexico
82
14,184

Turkey
67
12,266

United Arab Emirates
33
11,306

Germany
40
9,689

Japan
19
7,584

Saudi Arabia
15
5,279

 

IHG Hotels & Top Countries

Country
WW Props
WW Rooms

United States
3,724
405,490

China
568
154,550

United Kingdom
332
47,811

Canada
186
24,770

Mexico
151
22,730

Germany
90
17,418

Japan
38
11,095

Saudi Arabia
33
9,900

Australia
42
9,502

United Arab Emirates
30
8,802

 

Marriott Int’l & Top Countries

Country
WW Props
WW Rooms

United States
5,351
879,757

China
419
130,704

Canada
257
53,937

India
128
25,917

United Kingdom
117
22,677

Mexico
103
21,884

Germany
91
20,705

United Arab Emirates
68
19,667

Japan
72
16,471

Spain
87
12,864

Parent Companies and Country Distribution
26
As of Year-End 2021
Source: STR
© 2022 CoStar Realty Information, Inc.
As of Year-End 2021

Parent Companies and Chains – Hilton & Intercontinental Hotel Group

Parent Company
Chain
Scale
U.S. Props
U.S.
Rooms

WW Props
WW Rooms

Hilton Worldwide
Conrad
Luxury Chains
7
3,707
44
15,464

LXR Hotels & Resorts
Luxury Chains
3
426
8
1,198

Waldorf Astoria
Luxury Chains
11
4,311
30
8,417

Canopy by Hilton
Upper Upscale Chains
23
3,908
35
6,034

Curio Collection by Hilton
Upper Upscale Chains
67
16,295
115
23,564

Embassy Suites by Hilton
Upper Upscale Chains
250
57,620
258
59,623

Hilton
Upper Upscale Chains
245
102,186
588
218,015

Signia by Hilton
Upper Upscale Chains
1
1,009
1
1,009

DoubleTree by Hilton
Upscale Chains
368
87,365
627
142,984

Hilton Garden Inn
Upscale Chains
730
100,728
934
136,815

Homewood Suites by Hilton
Upscale Chains
499
56,948
526
60,042

Tapestry Collection by Hilton
Upscale Chains
64
7,648
74
8,743

DoubleTree Club
Upper Midscale Chains
3
449
3
449

Hampton by Hilton
Upper Midscale Chains
2,301
227,965
2,758
297,267

Home2 Suites by Hilton
Upper Midscale Chains
514
53,808
523
54,836

Motto by Hilton
Upper Midscale Chains
3
871
3
871

Tru by Hilton
Midscale Chains
212
20,664
214
20,843

IHG Hotels & Resorts
InterContinental
Luxury Chains
21
9,282
204
74,967

Regent
Luxury Chains
7
2,254

Six Senses
Luxury Chains
19
1,310
Parent

Hotel Indigo
Upper Upscale Chains
63
8,454
130
16,355
companies:

Kimpton
Upper Upscale Chains
60
10,357
74
13,162

Crowne Plaza
Upscale Chains
89
23,270
397
108,730

EVEN Hotels
Upscale Chains
19
2,743
21
2,994
(multiple

HUALUXE Hotels & Resorts
Upscale Chains
16
4,603
Scales), few or

Staybridge Suites
Upscale Chains
274
28,588
316
34,415

voco
Upscale Chains
5
469
31
7,445

Holiday Inn
Upper Midscale Chains
549
87,837
1,191
215,606
worldwide,

Holiday Inn Express
Upper Midscale Chains
2,241
198,772
3,005
315,316
changing

Avid
Midscale Chains
46
4,060
48
4,280

Candlewood Suites
Midscale Chains
357
31,658
362
32,112

diversity
many chains,
27
Source: STR
© 2022 CoStar Realty Information, Inc.

Parent Companies and Chains – Marriott

Parent Company
Chain
Scale
U.S. Props
U.S.
Rooms

WW Props
WW Rooms

Marriott International
Bulgari
Luxury Chains
7
608

Edition
Luxury Chains
4
1,207
12
3,021

JW Marriott
Luxury Chains
32
18,277
104
44,051

Luxury Collection
Luxury Chains
16
5,283
107
22,033

Ritz-Carlton
Luxury Chains
38
11,275
113
29,288

St. Regis
Luxury Chains
8
1,621
48
10,996

W Hotel
Luxury Chains
24
6,845
62
17,341

Autograph Collection
Upper Upscale Chains
128
26,519
249
51,683

Gaylord
Upper Upscale Chains
6
10,220
6
10,220

Le Meridien
Upper Upscale Chains
22
5,076
102
26,845

Marriott
Upper Upscale Chains
315
124,419
582
203,164

Marriott Conference Center
Upper Upscale Chains
5
1,292
5
1,292

Marriott Executive
Apartments

Upper Upscale Chains
34
4,645

Renaissance
Upper Upscale Chains
82
27,557
171
52,637

Sheraton Hotel
Upper Upscale Chains
160
60,899
425
150,320

Tribute Portfolio
Upper Upscale Chains
38
6,227
69
10,095

Westin
Upper Upscale Chains
121
50,117
232
84,889

AC Hotels by Marriott
Upscale Chains
93
15,402
200
30,493

aloft Hotel
Upscale Chains
143
20,889
208
33,950

Courtyard
Upscale Chains
1,002
137,457
1,248
186,141

Delta Hotel
Upscale Chains
43
9,032
93
21,846

element
Upscale Chains
68
9,332
87
12,554

Four Points by Sheraton
Upscale Chains
125
18,906
292
54,759

Residence Inn
Upscale Chains
817
99,929
873
107,698

SpringHill Suites
Upscale Chains
508
60,002
510
60,301

Fairfield Inn
Upper Midscale Chains
1,075
101,115
1,195
118,175

MOXY
Upper Midscale Chains
26
4,914
106
20,077

Protea Hotel
Upper Midscale Chains
64
6,601

TownePlace Suites
Upper Midscale Chains
452
45,945
472
48,203

As of Year-End 2021
28
Source: STR
© 2022 CoStar Realty Information, Inc.

Top Management Companies in the World

Management Company
WW Props
WW Rooms

Marriott International
1,777
517,161

Huazhu Hotels Group
2,999
329,713

Hilton Hotels & Resorts
748
235,415

IHG Hotels & Resorts
787
223,279

Jinjiang Inn Co., Ltd.
1,358
156,180

Hyatt
506
156,023

Aimbridge Hospitality
1,036
145,836

Rezidor Hotel Group AB
553
111,066

Vienna Hotels Group
567
87,114

Premier Inn
853
85,194

Accor
392
78,555

APA Hotel
366
63,775

Extended Stay Hotels
561
62,398

Super 8 Hotels China Co Ltd
1,047
62,345

Meliá Hotels
236
61,784

Accor Middle East & Africa
228
58,131

Plateno Group
404
53,639

Wyndham
345
53,022

NH Hotel Group
341
52,903

 

Top Owners in the World

Owner
WW Props
WW Rooms

AccorInvest Group
794
120,015

Extended Stay Hotels
609
67,458

Whitbread Group
594
55,460

Host Hotels & Resorts, Inc.
89
47,825

Service Properties Trust
300
47,209

Starwood Capital Group
335
39,498

MGM Resorts
16
35,438

APA Hotel
142
29,897

Shangri-la Hotels & Resorts
68
29,275

Highgate Hotels
208
29,160

Pandox AB
127
28,741

Apple Hospitality REIT, Inc.
218
28,646

Caesars Entertainment
14
26,141

Fattal Hotel Group
136
24,526

Barcelo Hotels & Resorts
74
24,253

InTown Suites
187
23,797

Ashford Hospitality Trust, Inc.
108
23,570

The Blackstone Group Inc.
92
23,540

Louvre Hotels
271
22,687

Walt Disney World Resorts
20
21,959

RLJ Lodging Trust
98
21,669

Management Companies and Owners
As of Year-End 2021
29
Source: STR
© 2022 CoStar Realty Information, Inc.
Sample relationships among hospitality players
Hilton Worldwide
Summit Hotel
Properties
Hospitality Investors
Trust
Rockbridge Capital
Aimbridge Hospitality Crossroads Hospitality
Embassy Suites
Nashville
Canopy by Hilton
Atlanta
Hilton Garden Inn
Aberdeen, MD
Hampton Inn &
Suites Maryland
Property Brand Asset
Mgmt. Co.
Hotel Operating
Co. Owner Co. Parent Co.
1. Hospitality Investors Trust
(hypothetically) owns multiple
Hilton WW Parent Company
hotels. They work with Rockbridge
Capital, an asset mgmt. co., who
in turn, works with Crossroads
Hospitality, a hotel operating
company (mgmt. co.), to run two
of their hotels, a Hampton Inn and
a Hilton Garden Inn.
2. Summit Hotel Properties
(hypothetically) owns multiple
Hilton hotels also. They work with
Aimbridge Hospitality, a hotel
operating company (mgmt. co.), to
run two of their hotels, an
Embassy Suites and a Canopy by
Hilton.
30
Source: STR
© 2022 CoStar Realty Information, Inc.
Chain Managed or • Chain hotel owned and/or managed by the chain or the parent company.
Corporate
• Chain hotel run by a third party where the chain receives some sort of
Franchise franchise fee.
• Not affiliated with a chain or parent company.
• The number of chain versus independent hotels varies throughout the world.
Independent • Majority are smaller, lower priced, and rural.
• These allow a Parent Company to bring unique independent hotels under a
parent company flag, allowing them to access things like reservation
Soft Brands systems and loyalty programs.
Operations, Independents and Soft Brands
soft versus hard/traditional
Operation Types
31
Source: STR
© 2022 CoStar Realty Information, Inc.

55
45

74
80
Chain hotels Independents

20
26

0
20
40
60
80
100
Total World U.S. Italy
Chain Hotels versus Independents – World, U.S., Italy
Percentages based on Number of Rooms, year end 2021
32
WW percentage (55/45) is based on hotels in STR database, much
harder to find WW independents, probably less than 50/50
Chain vs. independent percentages available for any country
Source: STR
© 2022 CoStar Realty Information, Inc.

Scale
Properties
Rooms
Sample Properties
Sample Rooms
Properties %
Rooms %

Luxury Chains
38
11,087
35
11,063
92.10%
99.80%

Upper Upscale Chains
158
27,599
156
27,446
98.70%
99.40%

Upscale Chains
429
53,666
426
53,430
99.30%
99.60%

Upper Midscale Chains
277
21,890
257
20,596
92.80%
94.10%

Midscale Chains
339
19,711
302
18,156
89.10%
92.10%

Economy Chains
45
2,704
35
2,317
77.80%
85.70%

Independents
4,473
166,083
675
45,628
15.10%
27.50%

Total
5,759
302,740
1886
178,636
32.75%
59.01%

 

Chain hotels
1,286
22.33%

Independents
4,473
77.67%

Chain Hotels versus Independents – Australia
Percentages based on Number of Rooms, Q3 2020
33
Source: STR
© 2022 CoStar Realty Information, Inc.

WW Hotels by Operation

Operation Type
U.S. Props
U.S. Rooms
WW Props
WW Rooms

Chain Management
3,486
768,770
32,568
5,346,396

Franchise
31,981
3,211,120
50,866
5,380,013

Independent
24,743
1,513,210
134,380
8,913,190

Parent Companies and Corporate versus Franchise Counts

Parent Company
Corporate
Franchise

Wyndham Hotels & Resorts
372
8,253

Marriott International
1,942
5,732

Choice Hotels International, Inc.
2
6,928

Hilton Worldwide
830
5,904

IHG Hotels & Resorts
849
4,946

Accor Hotels
2,350
2,710

Huazhu Hotels Group
3,739
227

Best Western Hotels & Resorts
3
3,755

Jin Jiang International (Holdings) Co., Ltd.
1,759
45

OYO Rooms
134
1,321

G6 Hospitality
106
1,304

Groupe du Louvre
725
585

Radisson Hotel Group
135
1,073

Hyatt
611
560

7 Days Inn
1,020

Home Inns Group
166
725

Whitbread Group
862
14

RLH Corporation
5
853

GreenTree Hospitality Group Ltd.
2
704

Westmont Hospitality Group
174
505

Hotels by Operation Type and Parent Companies by Operation
As of Year-End 2021
34
Source: STR
© 2022 CoStar Realty Information, Inc.

Popular Global Soft Brands

Soft Brand
Parent Company
U.S. Props
U.S. Rooms
WW Props
WW Rooms

Aiden
Best Western
7
714
14
1,366

Art’otel
Radisson
4
586

Ascend
Choice
173
14,946
302
29,987

Alila
Hyatt
3
257
16
1,724

Autograph
Marriott
128
26,519
249
51,683

BW Premier Collection
Best Western
28
8,108
101
13,811

BW Signature Collection
Best Western
15
1,384
93
6,639

BW Surestay Collection
Best Western
13
1,309
105
6,579

Canopy
Hilton
23
3,908
35
6,034

Curio Collection
Hilton
67
16,373
115
23,642

Destination Hotels
Hyatt
36
4,608
36
4,608

Dolce Hotels & Resorts
Wyndham
18
4,754

Joi de Vivre
Hyatt
14
2,233
21
2,953

Luxury Collection
Marriott
16
5,283
107
22,033

LXR Hotels & Resorts
Hilton
3
426
8
1,198

M Gallery
Accor
1
80
112
11,254

NH Collection
Minor
88
13,959

Radisson Collection (Quorvus)
Radisson
24
5,837

Registry Collection
Wyndham
2
274

Red Collection
Westmont Hospitality (Red Roof)
3
279
3
279

Tapestry Collection
Hilton
64
7,648
74
8,743

Trademark Hotel Collection
Wyndham
63
18,426
149
31,106

Tribute Portfolio
Marriott
38
6,227
69
10,095

Unbound Collection
Hyatt
11
2,229
26
5,056

Soft Brands
As of Year-End 2021
35
Source: STR
© 2022 CoStar Realty Information, Inc.

Top Asset Management Companies in the World

Asset Management Comp.
WW Props
WW Rooms

Park Hotels & Resorts, Inc.
56
32,456

Hilton Hotels & Resorts
84
29,644

Cerberus Capital Management, LP
213
27,490

CHMWarnick
55
26,391

BRE Hotels & Resorts
122
23,583

Rockbridge Capital
78
15,397

Hotel Asset Value Enchancement
45
13,300

Event Hotelgruppe
72
12,192

Japan Hotel REIT Investment Corp.
40
10,638

Hamilton Hotel Partners Assetm
50
9,464

Millennium & Copthorne
40
9,399

Colliers
47
7,548

Axios
34
7,368

The Chartres Lodging Group LLC
8
7,287

Garfield Traub Development
15
7,090

Hoshino Resort Asset Mgt Co., Ltd.
55
6,748

Michels and Taylor (London) Ltd.
34
5,624

Omni Hotels & Resorts
12
5,358

M&L Hospitality
13
3,997

Starwood Capital Group
24
3,889

Barings Real Estate Advisors
14
3,843

SilverBirch Hotels & Resorts
10
3,451

EQ Group
5
3,377

 

Top Marketing Groups in the World

Owner
WW Props
WW Rooms

Best Eastern
1,753
174,610

AA Automobile Association UK
1,737
136,544

Global Hotel Alliance
562
117,645

hotelleriesuisse
2,218
103,366

Leading Hotels Of The World
476
64,134

Failte Ireland
819
62,132

Lifestyle by Preferred Hotels & Resorts
262
55,210

The Sovereign Collection
228
50,922

LVX by Preferred Hotels & Resorts
234
40,855

Hotusa
454
37,862

AHMI ‐ RES Hotel
155
28,789

Small Luxury Hotels
536
28,527

Magnuson Hotels International
493
25,152

WorldHotels Elite
81
23,626

Connect by Preferred Hotels & Resorts
99
22,718

Hoteleros de Chile AG
317
22,718

DESIGN HOTELS
304
21,359

Legend by Preferred Hotels & Resorts
77
17,176

Resorts Brasil
52
15,839

Apatel
106
15,363

Historic Hotels of America
93
14,175

WorldHotels Distinctive
63
12,380

Relais & Chateaux
376
11,799

Asset Management Companies and Marketing Groups
As of Year-End 2021
36
Source: STR
© 2022 CoStar Realty Information, Inc.
Membership and
Marketing Groups
Real Estate
Investment Trusts
Convention &
Visitor Bureaus,
Tourism and Travel
Organizations
Hotel Associations
Developers,
Consultants,
Appraisers
Wall Street,
Accounting,
Financial firms
Media Governments
Hotel vendors Online Travel
Agents Review Sites
Other Players in the Hotel Industry
37
Source: STR
© 2022 CoStar Realty Information, Inc.
Most of the entities below are classified as “Chains”. Which one is a “Parent Company” consisting of multiple chains?
A. Hampton Inn
B. Radisson Blu
C. Accor Hotels
D. Holiday Inn Express
Which is a true statement about Parent Companies?
A. Parent Companies and the related chains have changed over time
B. Parent Companies must consist of no more than five chains
C. Parent Companies can only consist of chains in a single Scale
D. Parent Companies can only have hotels in a single country
What are the three different operation types?
A. Corporate, Managed, Independent
B. Managed, Franchise, Independent
C. Managed, Clustered, Independent
D. Chain Management, Franchise, Independent
Quiz Questions
38
Source: STR
© 2022 CoStar Realty Information, Inc.
Most of the entities below are classified as “Chains”. Which one is a “Parent Company” consisting of multiple chains?
A. Hampton Inn
B. Radisson Blu
C. Accor Hotels
D. Holiday Inn Express
Which is a true statement about Parent Companies?
A. Parent Companies and the related chains have changed over time
B. Parent Companies must consist of no more than five chains
C. Parent Companies can only consist of chains in a single Scale
D. Parent Companies can only have hotels in a single country
What are the three different operation types?
A. Corporate, Managed, Independent
B. Managed, Franchise, Independent
C. Managed, Clustered, Independent
D. Chain Management, Franchise, Independent
Quiz Questions
39
Source: STR
© 2022 CoStar Realty Information, Inc.
Most of the entities below are classified as “Chains”. Which one is a “Parent Company” consisting of multiple chain?
A. Hampton Inn
B. Radisson Blu
C. Accor Hotels
D. Holiday Inn Express
Which is a true statement about Parent Companies?
A. Parent Companies and the related chains have changed over time
B. Parent Companies must consist of no more than five chains
C. Parent Companies can only consist of chains in a single Scale
D. Parent Companies can only have hotels in a single country
What are the three different operation types?
A. Corporate, Managed, Independent
B. Managed, Franchise, Independent
C. Managed, Clustered, Independent
D. Chain Management, Franchise, Independent
Quiz Questions
40
Source: STR
© 2022 CoStar Realty Information, Inc.
Most of the entities below are classified as “Chains”. Which one is a “Parent Company” consisting of multiple chains?
A. Hampton Inn
B. Radisson Blu
C. Accor Hotels
D. Holiday Inn Express
Which is a true statement about Parent Companies?
A. Parent Companies and the related chains have changed over time
B. Parent Companies must consist of no more than five chains
C. Parent Companies can only consist of chains in a single Scale
D. Parent Companies can only have hotels in a single country
What are the three different operation types?
A. Corporate, Managed, Independent
B. Managed, Franchise, Independent
C. Managed, Clustered, Independent
D. Chain Management, Franchise, Independent
Quiz Questions
41
Source: STR
© 2022 CoStar Realty Information, Inc.
Which is a true statement about independent hotels?
A. Independent hotels are not affiliated with a specific chain
B. Chain hotels outnumber independent hotels in every country of the world
C. Independent hotels are mostly Luxury Class hotels in Urban Locations with more than 150 rooms
D. Independent hotels may never be managed by an outside entity
Which is a true statement about Management Companies?
A. Management companies have contracts where they receive payment for their services and/or some portion of profits
B. Management companies may manage only one chain
C. Management companies will always own the hotels they manage
D. Management companies serve the exact same role as asset management companies
Quiz Questions continued
42
Source: STR
© 2022 CoStar Realty Information, Inc.
Which is a true statement about independent hotels?
A. Independent hotels are not affiliated with a specific chain
B. Chain hotels outnumber independent hotels in every country of the world
C. Independent hotels are mostly Luxury Class hotels in Urban Locations with more than 150 rooms
D. Independent hotels may never be managed by an outside entity
Which is a true statement about Management Companies?
A. Management companies have contracts where they receive payment for their services and/or some portion of profits
B. Management companies may manage only one chain
C. Management companies will always own the hotels they manage
D. Management companies serve the exact same role as asset management companies
Quiz Questions continued
43
Source: STR
© 2022 CoStar Realty Information, Inc.
Which is a true statement about independent hotels?
A. Independent hotels are not affiliated with a specific chain
B. Chain hotels outnumber independent hotels in every country of the world
C. Independent hotels are mostly Luxury Class hotels in Urban Locations with more than 150 rooms
D. Independent hotels may never be managed by an outside entity
Which is a true statement about Management Companies?
A. Management companies have contracts where they receive payment for their services and/or some portion of profits
B. Management companies may manage only one chain
C. Management companies will always own the hotels they manage
D. Management companies serve the exact same role as asset management companies
Quiz Questions continued
44
Source: STR
© 2022 CoStar Realty Information, Inc.
45
• The top four geographic categories used by
the hotel industry are:
World
Continent – four: Americas, Europe,
Mideast/Africa, and Asia Pacific
Sub-Continent – 3 or 4 per continent
Country – over 200 with one or more hotel
• STR definitions roughly correspond to the UNWTO definitions.
Top Geographic Categories
Asia
Pacific
Europe
Americas Mideast
Africa

Source: STR
© 2022 CoStar Realty Information, Inc.
As of Year-End 2021

Continents and Sub-Continents

Continent
Sub-Continent
Properties
Rooms
Sample
Props

Sample
Rooms

Americas
Caribbean
1,991
255,880
288
70,429

Americas
Central America
1,071
62,252
166
23,871

Americas
North America
70,978
6,363,009
39,853
4,628,906

Americas
South America
6,513
549,489
1,556
220,494

Asia Pacific
Australia & Oceania
7,885
398,933
2,183
217,402

Asia Pacific
Central & South Asia
6,248
390,469
2,108
197,984

Asia Pacific
Northeastern Asia
26,911
4,205,878
9,842
1,760,657

Asia Pacific
Southeastern Asia
9,706
1,125,122
2,205
407,535

Europe
Eastern Europe
6,887
577,979
998
174,023

Europe
Northern Europe
19,527
1,079,448
4,794
551,230

Europe
Southern Europe
23,952
1,910,440
2,627
369,913

Europe
Western Europe
28,218
1,714,794
5,179
640,049

Middle East & Africa
Middle East
3,010
445,444
1,137
277,539

Middle East & Africa
Northern Africa
1,663
320,403
257
68,166

Middle East & Africa
Southern Africa
3,232
236,941
520
69,907

Continents and Sub-Continents
46
Source: STR
© 2022 CoStar Realty Information, Inc.

Continents and Top 10 Countries by number of rooms

Continent
Country
Properties
Rooms
Sample Props
Sample Rooms

Americas
United States
60,215
5,493,005
36,608
4,188,172

Americas
Mexico
4,085
437,895
1,042
167,380

Americas
Canada
6,673
431,737
2,203
273,354

Americas
Brazil
2,283
287,341
838
136,057

Americas
Dominican Republic
269
80,728
61
27,145

Americas
Colombia
1,115
75,033
263
30,680

Americas
Argentina
1,173
64,851
143
15,874

Americas
Cuba
253
54,527
6
2,534

Americas
Chile
581
38,075
102
13,672

Americas
Peru
634
30,623
127
13,914

Asia Pacific
China
21,345
3,266,837
8,249
1,417,299

Asia Pacific
Japan
4,758
772,637
1,396
283,046

Asia Pacific
Indonesia
4,435
391,503
1,022
144,862

Asia Pacific
India
5,728
339,239
1,934
174,983

Asia Pacific
Australia
5,819
308,684
1,936
183,925

Asia Pacific
Thailand
1,718
240,401
451
88,709

Asia Pacific
Malaysia
919
163,025
239
53,981

Asia Pacific
Vietnam
1,076
125,022
137
31,640

Asia Pacific
South Korea
391
100,254
141
45,671

Asia Pacific
Philippines
672
88,692
157
33,201

Europe
Spain
9,754
746,347
1,021
149,836

Europe
Germany
10,811
709,150
1,886
305,055

Europe
United Kingdom
14,670
677,541
4,110
431,778

Europe
France
9,054
552,372
2,003
164,386

Europe
Italy
6,821
369,729
735
82,090

Europe
Turkey
1,895
295,058
347
58,209

Europe
Russia
1,831
184,832
262
56,757

Europe
Greece
1,749
152,718
83
11,610

Europe
Austria
2,531
138,147
194
31,655

Europe
Netherlands
2,137
132,208
449
65,386

Middle East & Africa
United Arab Emirates
1,027
196,530
536
144,268

Middle East & Africa
Egypt
637
168,770
102
38,421

Middle East & Africa
Saudi Arabia
988
128,647
258
65,850

Middle East & Africa
South Africa
1,120
81,701
262
32,912

Middle East & Africa
Tunisia
379
78,217
26
6,483

Middle East & Africa
Morocco
513
56,796
98
16,981

Middle East & Africa
Qatar
138
29,387
137
29,364

Middle East & Africa
Kenya
251
21,259
28
4,065

Middle East & Africa
Oman
239
20,268
65
9,951

Middle East & Africa
Jordan
209
19,820
38
9,610

As of Year-End 2021
47
Source: STR
© 2022 CoStar Realty Information, Inc.

Top Countries in the World

Country
Properties
Rooms

United States
60,216
5,493,024

China
21,344
3,266,703

Japan
4,758
772,637

Spain
9,754
746,347

Germany
10,811
709,150

United Kingdom
14,669
677,440

France
9,054
552,372

Mexico
4,085
437,895

Canada
6,669
431,373

Indonesia
4,435
391,503

Italy
6,818
369,591

India
5,728
339,239

Australia
5,819
308,684

Turkey
1,895
295,058

Brazil
2,283
287,341

Thailand
1,719
240,429

United Arab Emirates
1,027
196,530

Russia
1,831
184,832

Egypt
637
168,770

Malaysia
919
163,025

 

Top Markets in the World

Market
Properties
Rooms

Shanghai, China
2,304
335,114

Beijing, China
2,171
308,937

Las Vegas, NV
390
168,983

Tokyo, Japan
748
148,495

London, United Kingdom
1,564
142,482

Dubai, United Arab Emirates
673
137,774

Orlando, FL
555
133,778

Guangzhou, China
808
130,211

Hangzhou, China
909
126,421

Chicago, United States
813
120,383

New York, United Staes
712
119,643

Los Angeles, United States
1,286
112,305

Shenzhen, China
644
110,317

Washington DC, United States
729
110,106

Atlanta, United States
949
109,526

Chengdu, China
696
104,277

Houston, United States
1,040
98,641

Bangkok, Thailand
537
98,096

Dallas, United States
794
97,505

Xian, China
531
79,856

Top Countries and Markets
48
As of Year-End 2021
Source: STR
© 2022 CoStar Realty Information, Inc.
• Commonly thought of as a city (metro), but also rural (non-metro) areas.
Market • No market will ever cross country boundaries.
• A geographic subset of a Market.
• In a metro Market, could be a CBD (Central Business District), Airport, a suburb name,
North/South/East/West or a highway #.
• In a non-metro Market, a small city could be a Submarket.
• Submarkets used to be called Tracts.
Submarket
• There may be a large (>100) or small number (even just one) of Markets and Submarkets in a country.
• Both are created based upon the number of hotels in an area and the participation (for example:
market=100-150, submarket=30-50)
• Both are important for a hotel GM (appear on STAR Report).
• Revisions are normally made at the end of the year
Rules
Most Important Geographic Categories
49
Source: STR
© 2022 CoStar Realty Information, Inc.
Nashville submarkets: CBD,
Airport, I-65/ North, I-24/
Murfreesboro, Brentwood/
Franklin, Other Areas
Tennessee Area submarkets:
Clarksville,
Bristol/Kingsport, East,
Central, West Area
Tennessee has 4 metro
markets:
1. Memphis
2. Nashville
3. Knoxville
4. Chattanooga
And a non-metro
market:
5. Tennessee Area
Sample Markets – same logic applies anywhere in world
50
Source: STR
© 2022 CoStar Realty Information, Inc.
Sample Markets & Submarkets

Country
Market
Submarket

French Polynesia
French Polynesia
Bora Bora

French Polynesia
French Polynesia
French Polynesia Regional

Russia
Moscow
MKAD

Russia
Moscow
Moscow Centre

Russia
Moscow
Tretie Koltso
Submarket =

Russia
Russia Provincial
Russia Asia Regional

Russia
4 markets,
Russia Provincial
Russia Europe Regional

Russia
2 or 3
Russia Provincial
Yekaterinburg

Russia
sub
Saint Petersburg
St. Petersburg Centre

Russia
markets
Saint Petersburg
St. Petersburg South & Pulkovo Airport

Russia
each
Sochi
Sochi Mountains

Russia
Sochi
Sochi Seaside

United Arab Emirates
Abu Dhabi
Al Raha/Saadiyat/Yas

United Arab Emirates
Abu Dhabi
Corniche & Downtown

United Arab Emirates
Abu Dhabi
Exhibition Center & Suburbs

United Arab Emirates
Dubai
Al Barsha/Media City/Tecom

United Arab Emirates
Dubai
Bur Dubai

United Arab Emirates
Dubai
Deira Centre & Deira Creek

United Arab Emirates
Dubai
Downtown & Business Bay

United Arab Emirates
Dubai
Dubai Creek/DXB Airport/Festival City

United Arab Emirates
Dubai
Dubai Surrounding

United Arab Emirates
Dubai
Jumeirah Beach Residences & Marina

United Arab Emirates
Dubai
Jumeirah Palm & Beaches

United Arab Emirates
Dubai
Sheikh Zayed Road

United Arab Emirates
UAE Provincial
Ajman

United Arab Emirates
UAE Provincial
Fujairah

United Arab Emirates
UAE Provincial
Ras Al-Khaimah

United Arab Emirates
UAE Provincial
Sharjah

United Arab Emirates
UAE Provincial
UAE Regional

 

Country
Market
Submarket

Greenland
Greenland
Greenland
1 market & submarket

Peru
Peru
Cusco

Peru
Peru
Lima

Peru
Peru
Peru Regional

Thailand
Bangkok
Bangkok Centre & Sukhumwit

Thailand
Bangkok
Bangkok River & Silom

Thailand
Bangkok
Bangkok Surrounding

Thailand
Bangkok
Pathum Wan & Vibhavadi

Thailand
Phuket
Patong

Thailand
Phuket
Phuket Surrounding

Thailand
Thailand Central & North
Cha Am & Hua Hin Area

Thailand
Thailand Central & North
Chiang Mai

Thailand
Thailand Central & North
Pattaya Area

Thailand
Thailand Central & North
Thailand Central & North Regional

Thailand
Thailand South
Koh Phangan & Koh Samui Area

Thailand
Thailand South
Krabi Area

Thailand
Thailand South
Thailand South Regional

Portugal
Algarve
Albufeira Area

Portugal
Algarve
Algarve Regional

Portugal
Lisbon
Bairro Alto & Campo de Ourique

Portugal
Lisbon
Campolide & Saldanha

Portugal
Lisbon
Lisbon Airport/CG/PDN

Portugal
Portugal North
Porto Area

Portugal
Portugal North
Portugal North Regional

Portugal
Portugal South
Cascais & Estoril

Portugal
Portugal South
Portugal South Regional

 

Larger Countries
# Markets
# Submarkets

China
37
133

United Kingdom
38
133

United States
165
649

FP – one
market, 2
submarkets
2 metro
markets, 2
non-metro
markets
small city
51
Source: STR
© 2022 CoStar Realty Information, Inc.
Which is a true statement regarding geographic categorization?
A. STR geographic categories are limited to North America
B. STR uses the UNWTO definitions when it comes to recognizing countries
C. General managers of hotels do not need to know geographic categories
D. The hotel industry uses seven continents to categorize hotels
Which is a true statement regarding markets?
A. Markets include hotels that are in big cities, not rural areas
B. A country would never have more than 100 markets and never have less than 2 markets
C. No market will ever cross country boundaries
D. There is another name for Markets outside the U.S.
In descending order of geographic size, which option below is correct?
A. Continent, Sub-Continent, Country, Submarket, Market
B. Continent, Country, Sub-Continent, Submarket, Market
C. Continent, Sub-Continent, Market, Country, Submarket
D. Continent, Sub-Continent, Country, Market, Submarket
Quiz Questions
52
Source: STR
© 2022 CoStar Realty Information, Inc.
Which is a true statement regarding geographic categorization?
A. STR geographic categories are limited to North America
B. STR uses the UNWTO definitions when it comes to recognizing countries
C. General managers of hotels do not need to know geographic categories
D. The hotel industry uses seven continents to categorize hotels
Which is a true statement regarding markets?
A. Markets include hotels that are in big cities, not rural areas
B. A country would never have more than 100 markets and never have less than 2 markets
C. No market will ever cross country boundaries
D. There is another name for Markets outside the U.S.
In descending order of geographic size, which option below is correct?
A. Continent, Sub-Continent, Country, Submarket, Market
B. Continent, Country, Sub-Continent, Submarket, Market
C. Continent, Sub-Continent, Market, Country, Submarket
D. Continent, Sub-Continent, Country, Market, Submarket
Quiz Questions
53
Source: STR
© 2022 CoStar Realty Information, Inc.
Which is a true statement regarding geographic categorization?
A. STR geographic categories are limited to North America
B. STR uses the UNWTO definitions when it comes to recognizing countries
C. General managers of hotels do not need to know geographic categories
D. The hotel industry uses seven continents to categorize hotels
Which is a true statement regarding markets?
A. Markets include hotels that are in big cities, not rural areas
B. A country would never have more than 100 markets and never have less than 2 markets
C. No market will ever cross country boundaries
D. There is another name for Markets outside the U.S.
In descending order of geographic size, which option below is correct?
A. Continent, Sub-Continent, Country, Submarket, Market
B. Continent, Country, Sub-Continent, Submarket, Market
C. Continent, Sub-Continent, Market, Country, Submarket
D. Continent, Sub-Continent, Country, Market, Submarket
Quiz Questions
54
Source: STR
© 2022 CoStar Realty Information, Inc.
Which is a true statement regarding geographic categorization?
A. STR geographic categories are limited to North America
B. STR uses the UNWTO definitions when it comes to recognizing countries
C. General managers of hotels do not need to know geographic categories
D. The hotel industry uses seven continents to categorize hotels
Which is a true statement regarding markets?
A. Markets include hotels that are in big cities, not rural areas
B. A country would never have more than 100 markets and never have less than 2 markets
C. No market will ever cross country boundaries
D. There is another name for Markets outside the U.S.
In descending order of geographic size, which option below is correct?
A. Continent, Sub-Continent, Country, Submarket, Market
B. Continent, Country, Sub-Continent, Submarket, Market
C. Continent, Sub-Continent, Market, Country, Submarket
D. Continent, Sub-Continent, Country, Market, Submarket
Quiz Questions
55
Source: STR
© 2022 CoStar Realty Information, Inc.
Which two geographic categories are the most important for a hotel GM?
A. Region and Market
B. Market and Submarket
C. Region and Submarket
D. Country and Submarket
Markets and Submarkets are created based on what two determining factors?
A. Geographic size and population
B. Geographic size and participation
C. Number of hotels and participation
D. Number of hotels and population
Which is a true statement regarding Submarkets
A. A submarket may represent a small city in a rural market
B. Submarkets are never used to represent a small city in a rural market
C. Some Markets do not have submarkets
D. A country will never have more than 100 submarkets
Quiz Questions continued
Changes to how Markets and Submarkets are geographically defined are generally made how often?
A. Monthly
B. Annually
C. Every five years
D. No regular schedule
56
Source: STR
© 2022 CoStar Realty Information, Inc.
Which two geographic categories are the most important for a hotel GM?
A. Region and Market
B. Market and Submarket
C. Region and Submarket
D. Country and Submarket
Markets and Submarkets are created based on what two determining factors?
A. Geographic size and population
B. Geographic size and participation
C. Number of hotels and participation
D. Number of hotels and population
Which is a true statement regarding Submarkets
A. A submarket may represent a small city in a rural market
B. Submarkets are never used to represent a small city in a rural market
C. Some Markets do not have submarkets
D. A country will never have more than 100 submarkets
Quiz Questions continued
Changes to how Markets and Submarkets are geographically defined are generally made how often?
A. Monthly
B. Annually
C. Every five years
D. No regular schedule
57
Source: STR
© 2022 CoStar Realty Information, Inc.
Which two geographic categories are the most important for a hotel GM?
A. Region and Market
B. Market and Submarket
C. Region and Submarket
D. Country and Submarket
Markets and Submarkets are created based on what two determining factors?
A. Geographic size and population
B. Geographic size and participation
C. Number of hotels and participation
D. Number of hotels and population
Which is a true statement regarding Submarkets
A. A submarket may represent a small city in a rural market
B. Submarkets are never used to represent a small city in a rural market
C. Some Markets do not have submarkets
D. A country will never have more than 100 submarkets
Quiz Questions continued
Changes to how Markets and Submarkets are geographically defined are generally made how often?
A. Monthly
B. Annually
C. Every five years
D. No regular schedule
58
Source: STR
© 2022 CoStar Realty Information, Inc.
Which two geographic categories are the most important for a hotel GM?
A. Region and Market
B. Market and Submarket
C. Region and Submarket
D. Country and Submarket
Markets and Submarkets are created based on what two determining factors?
A. Geographic size and population
B. Geographic size and participation
C. Number of hotels and participation
D. Number of hotels and population
Which is a true statement regarding Submarkets
A. A submarket may represent a small city in a rural market
B. Submarkets are never used to represent a small city in a rural market
C. Some Markets do not have submarkets
D. A country will never have more than 100 submarkets
Quiz Questions continued
Changes to how Markets and Submarkets are geographically defined are generally made how often?
A. Monthly
B. Annually
C. Every five years
D. No regular schedule
59
Source: STR
© 2022 CoStar Realty Information, Inc.
Which two geographic categories are the most important for a hotel GM?
A. Region and Market
B. Market and Submarket
C. Region and Submarket
D. Country and Submarket
Markets and Submarkets are created based on what two determining factors?
A. Geographic size and population
B. Geographic size and participation
C. Number of hotels and participation
D. Number of hotels and population
Which is a true statement regarding Submarkets
A. A submarket may represent a small city in a rural market
B. Submarkets are never used to represent a small city in a rural market
C. Some Markets do not have submarkets
D. A country will never have more than 100 submarkets
Quiz Questions continued
Changes to how Markets and Submarkets are geographically defined are generally made how often?
A. Monthly
B. Annually
C. Every five years
D. No regular schedule
60
Source: STR
© 2022 CoStar Realty Information, Inc.
Star Ratings have disadvantages (inconsistency, different groups
assigning, reliability).
• Seven categories, six for chain hotels ranging from Luxury to Economy, and one for all
Independent hotels.
• Chains are assigned into Scale groups based upon ADR of all hotels in world (impartial).
Consistent – all hotels in a Chain are in the same Scale group.
Scale
• Similar, same names as Scale, but no “Independent” group, so only 6. Independent hotels are
combined into groups with chain hotels at similar ADR levels.
• Chain hotels are always in the same Class as Scale.
Class
Chains in Scales and independent hotels in Classes are re-categorised at
the end of the year and can change.
Categories are important for a GM, displayed on STAR report
Important Classifications
61
Source: STR
© 2022 CoStar Realty Information, Inc.
WW Properties & ADR – 12 Month Ending December 2021
* ADR in U.S. Dollars, this data is available for any area of the world and any currency

Global Scale and Class Numbers

Scale
Class

Category
Properties
ADR*
Properties
ADR*

Luxury
2,450
$288.08
9,325
$302.75

Upper Upscale
6,030
$153.70
16,068
$155.49

Upscale
14,002
$112.24
31,420
$103.07

Upper Midscale
21,805
$95.71
45,832
$85.11

Midscale
14,698
$67.12
40,799
$64.89

Economy
24,578
$58.39
74,354
$57.26

Independents
134,235
$134.95

62
Source: STR
© 2022 CoStar Realty Information, Inc.
Luxury Intercontinental, JW Marriott, Shangri La, Fairmont, Sofitel,
Grand Hyatt, Ritz-Carlton, Four Seasons, Luxury Collection, Kempinski
Upper
Upscale
Hilton, Marriott, Sheraton, Hyatt Regency, Westin, Radisson Blu,
Embassy Suites, Renaissance, Pullman, Autograph Collection
Upscale Courtyard, Doubletree, Hilton Garden Inn, Crowne Plaza, Residence Inn,
Novotel, Homewood Suites, Springhill Suites, Hyatt Place, Four Points
Upper
Midscale
Holiday Inn Express, Hampton Inn, Holiday Inn, Mercure, Best Western
Plus, Fairfield Inn, Comfort Inn, La Quinta, Comfort Suites, Atour Hotels
Midscale Ibis, Best Western, Quality Inn, Ramada, JI Hotels, ibis Styles, Baymont,
Candlewood Suites, Vienna International, Vienna Hotel
Economy Super 8, JinJiang Inns, Days Inn, Motel 6, 7 Days Inns, Hanting, Home
Inn, Premier Inn, Extended Stay, Toyoko Inn
Examples of Chains by Scales (top 10 in world by # rooms)
63
Source: STR
© 2022 CoStar Realty Information, Inc.
Example – Slotting independent hotels into Classes
Acme Hotel
2021 Annual ADR
$125.50
Luxury Chains
Annual 2021 ADR Range $150-$220
Upper Upscale Chains
Annual 2021 ADR Range $120-$150
Upscale Chains
Annual 2021 ADR Range $100-$120
Upper Midscale Chains
Annual 2021 ADR Range $85-$100
Midscale Chains
Annual 2021 ADR Range $70-$85
Economy Chains
Annual 2021 ADR Range $55-$70
Market
Because the hotels
rate falls within the
Upper Upscale rate
range of $120-$150,
they are slotted as
Upper Upscale Class
Independent Hotel
64
Source: STR
© 2022 CoStar Realty Information, Inc.
In addition to the Scale and Class, STR tracks several other non-geographic categories,
including:
Location
Extended Stay
Full versus Limited Service
Boutique – very popular recently
Destination Resort
Additional Hotel Types: All Inclusive, All Suite, B&B/Inn, Condo, Conference, Convention,
Corporate Housing, and Timeshare
Hotel Ratings – generally inconsistent in most parts of the world
These categories are in the STR database and can be used to select hotels, but they are less
important for a GM than Scale and Class.
Additional Classifications – optional
65
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions
Which two classifications are the most important for a hotel GM?
A. Scale and Class
B. Scale and Location
C. Location and Type
D. Class and Type
How many Scale categories are there compared to Class categories?
A. 6 Scale categories and 6 Class categories
B. 6 Scale categories and 7 Class categories
C. 7 Scale categories and 6 Class categories
D. 7 Scale categories and 7 Class categories
Which one of the following is an accurate statement regarding Scale and Class groups and a single chain?
A. A Ritz Carlton hotel in the US can be in one Scale group and a Ritz Carlton hotel in Japan can be in a different Scale group
B. A Ritz Carlton hotel in the US can be in one Class group and a Ritz Carlton hotel in Japan can be in a different Class group
C. A Ritz Carlton hotel will always be in the same Scale and Class groups in every country throughout the world
D. Ritz Carlton may choose which Scale and which Class they are in
66
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions
Which two classifications are the most important for a hotel GM?
A. Scale and Class
B. Scale and Location
C. Location and Type
D. Class and Type
How many Scale categories are there compared to Class categories?
A. 6 Scale categories and 6 Class categories
B. 6 Scale categories and 7 Class categories
C. 7 Scale categories and 6 Class categories
D. 7 Scale categories and 7 Class categories
Which one of the following is an accurate statement regarding Scale and Class groups and a single chain?
A. A Ritz Carlton hotel in the US can be in one Scale group and a Ritz Carlton hotel in Japan can be in a different Scale group
B. A Ritz Carlton hotel in the US can be in one Class group and a Ritz Carlton hotel in Japan can be in a different Class group
C. A Ritz Carlton hotel will always be in the same Scale and Class groups in every country throughout the world
D. Ritz Carlton may choose which Scale and which Class they are in
67
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions
Which two classifications are the most important for a hotel GM?
A. Scale and Class
B. Scale and Location
C. Location and Type
D. Class and Type
How many Scale categories are there compared to Class categories?
A. 6 Scale categories and 6 Class categories
B. 6 Scale categories and 7 Class categories
C. 7 Scale categories and 6 Class categories
D. 7 Scale categories and 7 Class categories
Which one of the following is an accurate statement regarding Scale and Class groups and a single chain?
A. A Ritz Carlton hotel in the US can be in one Scale group and a Ritz Carlton hotel in Japan can be in a different Scale group
B. A Ritz Carlton hotel in the US can be in one Class group and a Ritz Carlton hotel in Japan can be in a different Class group
C. A Ritz Carlton hotel will always be in the same Scale and Class groups in every country throughout the world
D. Ritz Carlton may choose which Scale and which Class they are in
68
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions
Which two classifications are the most important for a hotel GM?
A. Scale and Class
B. Scale and Location
C. Location and Type
D. Class and Type
How many Scale categories are there compared to Class categories?
A. 6 Scale categories and 6 Class categories
B. 6 Scale categories and 7 Class categories
C. 7 Scale categories and 6 Class categories
D. 7 Scale categories and 7 Class categories
Which one of the following is an accurate statement regarding Scale and Class groups and a single chain?
A. A Ritz Carlton hotel in the US can be in one Scale group and a Ritz Carlton hotel in Japan can be in a different Scale group
B. A Ritz Carlton hotel in the US can be in one Class group and a Ritz Carlton hotel in Japan can be in a different Class group
C. A Ritz Carlton hotel will always be in the same Scale and Class groups in every country throughout the world
D. Ritz Carlton may choose which Scale and which Class they are in
69
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions continued
Which one of the following is an accurate statement regarding Class groups?
A. The names of the Class group are very different than the names of the Scale groups
B. Class groups are more popular and relevant in North America rather than outside North America
C. Independent hotels are slotted into Class groups based upon the ADR of the independent hotel compared to
the chain hotels in the same country or market
D. Once an independent hotel is slotted into a Class group, it will never change
Which one of the following is NOT a Location Category used by the hotel industry?
A. Airport
B. Suburban
C. Oceanfront
D. Urban
Which is NOT a valid classification?
A. Extended Stay
B. Boutique
C. Guest Satisfaction Rating
D. Destination Resort
70
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions continued
Which one of the following is an accurate statement regarding Class groups?
A. The names of the Class group are very different than the names of the Scale groups
B. Class groups are more popular and relevant in North America rather than outside North America
C. Independent hotels are slotted into Class groups based upon the ADR of the independent hotel
compared to the chain hotels in the same country or market
D. Once an independent hotel is slotted into a Class group, it will never change
Which one of the following is NOT a Location Category used by the hotel industry?
A. Airport
B. Suburban
C. Oceanfront
D. Urban
Which is NOT a valid classification?
A. Extended Stay
B. Boutique
C. Guest Satisfaction Rating
D. Destination Resort
71
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions continued
Which one of the following is an accurate statement regarding Class groups?
A. The names of the Class group are very different than the names of the Scale groups
B. Class groups are more popular and relevant in North America rather than outside North America
C. Independent hotels are slotted into Class groups based upon the ADR of the independent hotel
compared to the chain hotels in the same country or market
D. Once an independent hotel is slotted into a Class group, it will never change
Which one of the following is NOT a Location Category used by the hotel industry?
A. Airport
B. Suburban
C. Oceanfront
D. Urban
Which is NOT a valid classification?
A. Extended Stay
B. Boutique
C. Guest Satisfaction Rating
D. Destination Resort
72
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions continued
Which one of the following is an accurate statement regarding Class groups?
A. The names of the Class group are very different than the names of the Scale groups
B. Class groups are more popular and relevant in North America rather than outside North America
C. Independent hotels are slotted into Class groups based upon the ADR of the independent hotel
compared to the chain hotels in the same country or market
D. Once an independent hotel is slotted into a Class group, it will never change
Which one of the following is NOT a Location Category used by the hotel industry?
A. Airport
B. Suburban
C. Oceanfront
D. Urban
Which is NOT a valid classification?
A. Extended Stay
B. Boutique
C. Guest Satisfaction Rating
D. Destination Resort
73
Source: STR
© 2022 CoStar Realty Information, Inc.

-20%
-10%
0%
10%
20%
YOY Change
Manager A
Benchmarking 101: my hotel vs. the competition

-20%
-10%
0%
10%
20%
YOY Change
Manager B
74
Source: STR
© 2022 CoStar Realty Information, Inc.

-20%
-10%
0%
10%
20%
YOY Change
Manager A A’s Competitors
Benchmarking 101: my hotel vs. the competition

-20%
-10%
0%
10%
20%
YOY Change
Manager B B’s Competitors
75
Source: STR
© 2022 CoStar Realty Information, Inc.
• Benchmarking is relied upon heavily in the hotel industry, taking place at different levels
(property, chain, city).
• The key to benchmarking at the property level is the “competitive set”, also known as
the “comp set”.
• A competitive set is a group of hotels used primarily for comparison against a subject
property, sharing similar qualitative and quantitative features, aiding sales and
marketing and often used in management contracts.
• STR started providing benchmarking information in the 1980’s with several foundations:
confidentiality, accuracy and aggregation of data.
Benchmarking and Competitive Sets
76
Source: STR
© 2022 CoStar Realty Information, Inc.
• Comp sets can be created when a hotel is under construction and a hotel can receive
an “Under Construction” STAR Report.
Who decides? – For a chain hotel, the comp set decision is a joint effort with multiple
stakeholders.
• “
Why don’t I just choose a comp set that I can easily beat?”
The definition of “beat” is complicated, not just higher Occupancy and ADR, involves
relative improvement over time.
What is the average number of hotels in a comp set – between 5 and 6.
Comp Sets – When, Who, Why and What
77
Source: STR
© 2022 CoStar Realty Information, Inc.
When it comes to deciding upon a competitive set, you can think of the four “P”s. STR provides
a Radial Participation List with relevant fields to help in this process.
Key Considerations When Creating Comp Sets
• Hotels submit different types of data: monthly, daily, Group/Transient. Check participation for each.
Participation
• Normally, competitors will be relatively close to your hotel. Check the Distance field.
Proximity
• Normally competitors will have similar prices. Check Class, better than Scale. Also check the
internet.
Pricing
• Features, amenities and services. Check fields like Number of Rooms and Meeting Space.
Product
78
Source: STR
© 2022 CoStar Realty Information, Inc.
• “Participation” refers to the hotels that submit their confidential performance data to STR.
• In the U.S., 75% of all hotels, based upon number of rooms, submit performance data to
STR.
• In the U.S., 96% of all branded hotels participate with STR.
• In the U.S., several thousand independent hotels, especially higher end independents, also
participate.
• Certain STR reports show counts of hotels and rooms and differentiate between “Census”
and “Sample”.
Census refers to hotels in the STR database
Sample refer to hotels that participate.
STR Participation
79
Source: STR
© 2022 CoStar Realty Information, Inc.

STR #
Name
a

Dist‐
nce

Daily
STAR
Partici‐
pant

Monthly
STAR
Partici‐
pant

Daily
Segmenta
tion
Partici‐
pant

Monthly
Segment‐
ation
Partici‐
pant

Address
City
State
Country
Postal Code
Rooms

20862
Loews Vanderbilt Plaza Hotel 0
.0
X
X
2100 West End Ave
Nashville
TN
United States
37203‐5200
339

67902
Hyatt House Nashville at Vanderbilt 0
.1
X
X
X
X
2100 Hayes St
Nashville
TN
United States
37203‐5212
201

24233
Hampton Inn Nashville Vanderbilt 0
.2
X
X
X
X
1919 West End Ave
Nashville
TN
United States
37203‐2319
169

67872
Mint House Nashville West End 0
.2
X
2312 Elliston Pl
Nashville
TN
United States
37203‐5259
15

65801
Kimpton The Aertson Hotel 0
.2
X
X
2021 Broadway
Nashville
TN
United States
37203‐2410
180

20336
Hayes Street Hotel 0
.3
X
X
1909 Hayes St
Nashville
TN
United States
37203‐2316
105

31469
Courtyard Nashville Vanderbilt West End 0
.3
X
X
1901 West End Ave
Nashville
TN
United States
37203‐2308
226

32905
Hampton Inn Nashville Vanderbilt Elliston Place 0
.3
X
X
X
X
2330 Elliston Pl
Nashville
TN
United States
37203‐1703
157

62136
Homewood Suites by Hilton Nashville Vanderbilt 0
.3
X
X
2400 West End Ave
Nashville
TN
United States
37203‐1710
192

58049
Hutton Hotel 0
.3
X
X
1808 West End Ave
Nashville
TN
United States
37203‐2506
250

42199
Embassy Suites by Hilton Nashville at Vanderbilt 0
.4
X
X
X
X
1811 Broadway St
Nashville
TN
United States
37203‐2711
208

62847
Residence Inn Nashville Vanderbilt West End 0
.4
X
X
1800 Hayes St
Nashville
TN
United States
37203‐2504
145

62895
Springhill Suites Nashville Vanderbilt West End 0
.4
X
X
1800 West End Ave
Nashville
TN
United States
37203‐2506
100

54739
aloft Hotel Nashville West End 0
.4
X
X
1719 West End Ave
Nashville
TN
United States
37203‐2606
139

59151
Hilton Garden Inn Nashville Vanderbilt 0
.4
X
X
1715 Broadway
Nashville
TN
United States
37203‐2709
194

61774
Home2 Suites by Hilton Nashville Vanderbilt 0
.5
X
X
1800 Division St
Nashville
TN
United States
37203‐2704
119

68587
Mint House Midtown 0
.5
X
1016 18th Ave S
Nashville
TN
United States
37212‐2105
12

42919
Marriott Nashville @ Vanderbilt University 0
.5
X
X
2555 West End Ave
Nashville
TN
United States
37203‐1423
315

588
Holiday Inn Nashville Vanderbilt Downtown 0
.6
X
X
2613 West End Ave
Nashville
TN
United States
37203‐1424
297

12663
Best Western Plus Music Row 0
.7
X
1407 Division St
Nashville
TN
United States
37203‐4015
102

10316
Comfort Inn Downtown Nashville Vanderbilt 0
.8
X
1501 Demonbreun St
Nashville
TN
United States
37203‐3111
145

67593
Lyric Suites Novel Music Row 0
.8
X
1221 Division St
Nashville
TN
United States
37203‐4295
20

67871
Mint House Hillsboro Village 0
.9
X
1700 21st Ave S
Nashville
TN
United States
37212‐3732
17

68588
Mint House Village Row 1
.0
X
1700 Belcourt Ave
Nashville
TN
United States
37212‐3727
10

65330
Thompson Nashville 1
.0
X
X
X
X
401 11th Ave S
Nashville
TN
United States
37203‐4525
224

12207
Autograph Collection Union Station Hotel 1
.1
X
X
1001 Broadway
Nashville
TN
United States
37203‐3113
125

43898
Extended Stay America Nashville Vanderbilt 1
.1
X
3311 West End Ave
Nashville
TN
United States
37203‐1035
114

62890
Fairfield Inn & Suites Nashville Downtown The Gulch 1
.1
X
905 Division St
Nashville
TN
United States
37203‐4110
126

27663
Holiday Inn Express Nashville Downtown Conference Center 1
.2
X
X
920 Broadway
Nashville
TN
United States
37203‐3807
287

65251
The Westin Nashville 1
.3
X
X
X
X
807 Clark Pl
Nashville
TN
United States
37203‐2563
456

67143
JW Marriott Nashville 1
.3
X
X
201 8th Ave S
Nashville
TN
United States
37203‐3919
533

67036
Cambria Hotel & Suites Nashville Downtown 1
.3
X
X
118 8th Ave S
Nashville
TN
United States
37203‐3955
255

68589
Mint House at the Reserve 1
.3
X
301 Rosa L Parks Ave
Nashville
TN
United States
37203‐3574
49

56136
Homewood Suites by Hilton Nashville Downtown 1
.3
X
X
X
706 Church St
Nashville
TN
United States
37203‐3504
113

12660
Ascend Collection The Capitol Hotel Downtown 1
.4
X
711 Union St
Nashville
TN
United States
37219‐1707
100

66448
The Unbound Collection Holston House Nashville 1
.4
X
X
X
X
118 7th Ave N
Nashville
TN
United States
37203‐3713
191

20769
Renaissance Nashville Hotel 1
.4
X
X
611 Commerce St
Nashville
TN
United States
37203‐3742
673

5814
Sheraton Grand Nashville Downtown 1
.4
X
X
623 Union St
Nashville
TN
United States
37219‐1706
482

12667
Hermitage Hotel 1
.4
X
X
231 6th Ave N
Nashville
TN
United States
37219‐1903
122

38991
Hilton Nashville Downtown 1
.5
X
X
X
121 4th Ave S
Nashville
TN
United States
37201‐2003
330

67531
Springhill Suites Nashville Downtown Convention Center 1
.5
X
X
410 5th Ave S
Nashville
TN
United States
37203‐4210
125

Sample Radial Participation List for Loews Vanderbilt Hotel in Nashville, TN, USA
80
Source: STR
© 2022 CoStar Realty Information, Inc.
• When it comes to the various P’s, different people will give different weights to each of
the attributes.
• The four P’s is a great way to start the process and get a good preliminary draft of a
comp set. It is not the only answer and there are always exceptions and special
situations.
• There is a great deal of external information that should be taken into consideration
when creating comp sets.
• You can use the internet to shop rates (rate shopping) and learn more about pricing or to
check the web sites of potential competitors to see what types of customer that they are
targeting.
Hints – Creating Comp Sets
81
Source: STR
© 2022 CoStar Realty Information, Inc.
Rules Related to Creating Comp Sets (1)
• As of 2017, comp sets must consist of 4 hotels or more in addition to the
subject.
• Prior to this, the number was 3 or more in North America and Asia Pacific.
Sufficiency
• There is no rule related to the maximum number of hotels in a comp set.
Maximum • Comp set hotels can also be from anywhere.
• The comp set rules and checks are in place to protect the confidentiality of
Rules the data of a hotel, chain and company.
82
Source: STR
© 2022 CoStar Realty Information, Inc.
•No single property or chain can account for more than
50% of the total rooms in a comp set and no single
company (parent or management company) can
account for more than 70% of the total rooms in a
comp set.
•When percentages are calculated the rooms of the
subject, as well as those in the same chain and parent
company, are excluded. We must assume the subject
can obtain data for hotels in the same company.
Percentage checks
Rules Related to Creating Comp Sets (2)
83
Source: STR
© 2022 CoStar Realty Information, Inc.
Holiday Inn (Subject Hotel) 180 Rooms
Hampton Inn (Competitor) 220 Rooms
Comfort Inn (Competitor) 160 Rooms
Holiday Inn Express (Competitor) 155 Rooms
Comfort Inn (Competitor) 200 Rooms
Holiday Inn (Competitor) 165 Rooms
Home2 Suites (Competitor) 170 Rooms
Total Rooms 1,250 Rooms
Creating a Competitive Set
84
Source: STR
© 2022 CoStar Realty Information, Inc.
Holiday Inn (Subject Hotel) 180 Rooms

Hampton Inn
Comfort Inn

(Competitor)
(Competitor)

220 Rooms
160 Rooms
155 Rooms
200 Rooms
165 Rooms
170 Rooms
1,070 Rooms

Holiday Inn Express (Competitor)

Comfort Inn
Holiday Inn
Home2 Suites

(Competitor)
(Competitor)
(Competitor)
Total Rooms

First – The rooms of the subject hotel are removed
from the total.
Creating a Competitive Set
85
Source: STR
© 2022 CoStar Realty Information, Inc.
Holiday Inn (Subject Hotel) 180 Rooms

Hampton Inn
Comfort Inn

(Competitor)
(Competitor)

220 Rooms
160 Rooms
155 Rooms
200 Rooms
165 Rooms
170 Rooms
905 Rooms

Holiday Inn Express (Competitor)

Comfort Inn
Holiday Inn
Home2 Suites

(Competitor)
(Competitor)
(Competitor)
Total Rooms

Second – Rooms of any competitors from the same
chain are removed from the total.
Creating a Competitive Set
86
Source: STR
© 2022 CoStar Realty Information, Inc.
Holiday Inn (Subject Hotel) 180 Rooms

Hampton Inn
Comfort Inn

(Competitor)
(Competitor)

220 Rooms
160 Rooms
155 Rooms
200 Rooms
165 Rooms
170 Rooms
750 Rooms

Holiday Inn Express (Competitor)

Comfort Inn
Holiday Inn
Home2 Suites

(Competitor)
(Competitor)
(Competitor)
Total Rooms

Third – Rooms of any competitors from the same
parent company are removed from the total.
Creating a Competitive Set
87
Source: STR
© 2022 CoStar Realty Information, Inc.
Holiday Inn (Subject Hotel) 180 Rooms
Hotel Chain Company

Hampton Inn
Comfort Inn

(Competitor)
(Competitor)

220 Rooms 29% 29% 52%
160 Rooms 21% 48% 48%

Holiday Inn Express (Competitor)
155 Rooms

Comfort Inn
(Competitor)
(Competitor)
(Competitor)
Total Rooms

200 Rooms 27% 48% 48%

Holiday Inn
Home2 Suites

165 Rooms
170 Rooms
750 Rooms

23% 23% 52%

Fourth – The rooms of each competitor are divided by the total
number of rooms to determine their percentage of the total
reporting rooms by hotel, chain and company.
Creating a Competitive Set
88
Source: STR
© 2022 CoStar Realty Information, Inc.
Changing Comp Sets
Why
• Comp sets may need to be changed due to many reasons.
When
• It is possible to change your comp set at any time, although many people wait
until the beginning of the year.
How/rules
• Comp set changes must be done by a net change of two or more properties to
prevent “isolation”.
More
• If making a change with two properties, both must be in a different chain and
company, different from the subject.
Exceptions
• The only exception is adding a brand new hotel within six months or removing a
property that has closed or stopped participating after three consecutive months.
89
Source: STR
© 2022 CoStar Realty Information, Inc.
Why – Many hotels have more than one comp set for
multiple reasons:
Local versus Regional or between two cities or an airport and downtown
Different set for special niche (conference, water park, boutique)
Different sets for Weekday/Weekend or Group/Transient mix
Saving an old comp set when changing for perspective
An old comp set is linked to a prior contract
Different entities may not agree – chain versus management company
Names – The first comp set is referred to as the primary comp set, usually most related
to bonus. Others are named secondary, 3rd, 4th
Rules – A second comp set must differ from the primary comp set by at least two
properties. The same rules apply as for changes.
Additional Comp Sets
90
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions
Benchmarking in the hotel industry takes place at what level?
A. Property level for an individual hotel versus their Competitive Set
B. Corporate level for a hotel company, for example one brand versus others
C. Geographic level for tourism organizations, for example city versus comparable cities
D. All of the above levels
Comp sets are used for many purposes in hotel operations, which of the following is one of these purposes?
A. Comp sets can be used to aid the sales and marketing departments in determining the effectiveness of various
pricing decisions
B. Comp sets can be used in management contracts for performance requirements
C. Comp sets can have an effect on a general managers compensation
D. All of the above are examples of how comp sets are used
The four key considerations when creating a Competitive Set are?
A. Participation, Proximity, Policy and Product
B. Participation, Proximity, Pricing and Product
C. Participation, Parking, Policy and Pricing
D. Participation, Perimeter, Pool and Pricing
91
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions
Benchmarking in the hotel industry takes place at what level?
A. Property level for an individual hotel versus their Competitive Set
B. Corporate level for a hotel company, for example one brand versus others
C. Geographic level for tourism organizations, for example city versus comparable cities
D. All of the above levels
Comp sets are used for many purposes in hotel operations, which of the following is one of these purposes?
A. Comp sets can be used to aid the sales and marketing departments in determining the effectiveness of various
pricing decisions
B. Comp sets can be used in management contracts for performance requirements
C. Comp sets can have an effect on a general managers compensation
D. All of the above are examples of how comp sets are used
The four key considerations when creating a Competitive Set are?
A. Participation, Proximity, Policy and Product
B. Participation, Proximity, Pricing and Product
C. Participation, Parking, Policy and Pricing
D. Participation, Perimeter, Pool and Pricing
92
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions
Benchmarking in the hotel industry takes place at what level?
A. Property level for an individual hotel versus their Competitive Set
B. Corporate level for a hotel company, for example one brand versus others
C. Geographic level for tourism organizations, for example city versus comparable cities
D. All of the above levels
Comp sets are used for many purposes in hotel operations, which of the following is one of these purposes?
A. Comp sets can be used to aid the sales and marketing departments in determining the effectiveness of various
pricing decisions
B. Comp sets can be used in management contracts for performance requirements
C. Comp sets can have an effect on a general managers compensation
D. All of the above are examples of how comp sets are used
The four key considerations when creating a Competitive Set are?
A. Participation, Proximity, Policy and Product
B. Participation, Proximity, Pricing and Product
C. Participation, Parking, Policy and Pricing
D. Participation, Perimeter, Pool and Pricing
93
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions
Benchmarking in the hotel industry takes place at what level?
A. Property level for an individual hotel versus their Competitive Set
B. Corporate level for a hotel company, for example one brand versus others
C. Geographic level for tourism organizations, for example city versus comparable cities
D. All of the above levels
Comp sets are used for many purposes in hotel operations, which of the following is one of these purposes?
A. Comp sets can be used to aid the sales and marketing departments in determining the effectiveness of various
pricing decisions
B. Comp sets can be used in management contracts for performance requirements
C. Comp sets can have an effect on a general managers compensation
D. All of the above are examples of how comp sets are used
The four key considerations when creating a Competitive Set are?
A. Participation, Proximity, Policy and Product
B. Participation, Proximity, Pricing and Product
C. Participation, Parking, Policy and Pricing
D. Participation, Perimeter, Pool and Pricing
94
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions continued
All of the following are good reason for a hotel to have an additional competitive set, except which one?
A. Have a local competitive set based upon geography and another based upon a special feature or niche, for example:
waterpark, boutique, or conference
B. Have different sets for weekday/weekend or group/transient business
C. Have one set that you can easily beat and another which is a realistic target
D. Different entities may not agree, for example, chain versus management company
When can a competitive set be created?
A. A competitive set may be created once the hotel has opened
B. A competitive set may be created while the hotel is under construction
C. A competitive set may be created on the one year anniversary of a hotel’s opening
D. A competitive set may be created three months before a hotel opens
Who creates a competitive set for a chain hotel?
A. Only the General Manager
B. Only the Revenue Manager
C. Only the Sales and Marketing Managers
D. It is a joint effort involving many stakeholders
95
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions continued
All of the following are good reason for a hotel to have an additional competitive set, except which one?
A. Have a local competitive set based upon geography and another based upon a special feature or niche, for example:
waterpark, boutique, or conference
B. Have different sets for weekday/weekend or group/transient business
C. Have one set that you can easily beat and another which is a realistic target
D. Different entities may not agree, for example, chain versus management company
When can a competitive set be created?
A. A competitive set may be created once the hotel has opened
B. A competitive set may be created while the hotel is under construction
C. A competitive set may be created on the one year anniversary of a hotel’s opening
D. A competitive set may be created three months before a hotel opens
Who creates a competitive set for a chain hotel?
A. Only the General Manager
B. Only the Revenue Manager
C. Only the Sales and Marketing Managers
D. It is a joint effort involving many stakeholders
96
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions continued
All of the following are good reason for a hotel to have an additional competitive set, except which one?
A. Have a local competitive set based upon geography and another based upon a special feature or niche, for example:
waterpark, boutique, or conference
B. Have different sets for weekday/weekend or group/transient business
C. Have one set that you can easily beat and another which is a realistic target
D. Different entities may not agree, for example, chain versus management company
When can a competitive set be created?
A. A competitive set may be created once the hotel has opened
B. A competitive set may be created while the hotel is under construction
C. A competitive set may be created on the one year anniversary of a hotel’s opening
D. A competitive set may be created three months before a hotel opens
Who creates a competitive set for a chain hotel?
A. Only the General Manager
B. Only the Revenue Manager
C. Only the Sales and Marketing Managers
D. It is a joint effort involving many stakeholders
97
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions continued
All of the following are good reason for a hotel to have an additional competitive set, except which one?
A. Have a local competitive set based upon geography and another based upon a special feature or niche, for example:
waterpark, boutique, or conference
B. Have different sets for weekday/weekend or group/transient business
C. Have one set that you can easily beat and another which is a realistic target
D. Different entities may not agree, for example, chain versus management company
When can a competitive set be created?
A. A competitive set may be created once the hotel has opened
B. A competitive set may be created while the hotel is under construction
C. A competitive set may be created on the one year anniversary of a hotel’s opening
D. A competitive set may be created three months before a hotel opens
Who creates a competitive set for a chain hotel?
A. Only the General Manager
B. Only the Revenue Manager
C. Only the Sales and Marketing Managers
D. It is a joint effort involving many stakeholders
98
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions continued
What is the average number of hotels in a competitive set?
A. Between 3 and 4
B. Between 4 and 5
C. Between 5 and 6
D. Between 6 and 7
Which is a valid rule related to creating a competitive set?
A. Comp sets must include seven or more hotels
B. No single property or chain can account for more than 25% of the total participating room supply of a comp set
C. You can not have more than 20 hotels in your comp set
D. When percentages are calculated, the rooms of the subject hotel, as well as the same chain and parent company, are
excluded
99
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions continued
What is the average number of hotels in a competitive set?
A. Between 3 and 4
B. Between 4 and 5
C. Between 5 and 6
D. Between 6 and 7
Which is a valid rule related to creating a competitive set?
A. Comp sets must include seven or more hotels
B. No single property or chain can account for more than 25% of the total participating room supply of a comp set
C. You can not have more than 20 hotels in your comp set
D. When percentages are calculated, the rooms of the subject hotel, as well as the same chain and parent company, are
excluded
100
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions continued
What is the average number of hotels in a competitive set?
A. Between 3 and 4
B. Between 4 and 5
C. Between 5 and 6
D. Between 6 and 7
Which is a valid rule related to creating a competitive set?
A. Comp sets must include seven or more hotels
B. No single property or chain can account for more than 25% of the total participating room supply of a comp set
C. You can not have more than 20 hotels in your comp set
D. When percentages are calculated, the rooms of the subject hotel, as well as the same chain and parent
company, are excluded
101
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions continued
When can a competitive set be changed?
A. Only if your hotel has changed affiliations
B. At any time, although many wait until the beginning of the year
C. Only at the beginning of the year
D. Only when a hotel has a new general manager
Which is NOT a valid rule related to changing a competitive set?
A. If adding two hotels to a competitive set, both must be in different chains
B. A single hotel may be added to a competitive set if it has been open less than six months
C. Any single hotel may be added to a competitive set at any time
D. Any change must involve two or more hotels, e.g. add one/drop one, add two, drop two, etc.
102
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions continued
When can a competitive set be changed?
A. Only if your hotel has changed affiliations
B. At any time, although many wait until the beginning of the year
C. Only at the beginning of the year
D. Only when a hotel has a new general manager
Which is NOT a valid rule related to changing a competitive set?
A. If adding two hotels to a competitive set, both must be in different chains
B. A single hotel may be added to a competitive set if it has been open less than six months
C. Any single hotel may be added to a competitive set at any time
D. Any change must involve two or more hotels, e.g. add one/drop one, add two, drop two, etc.
103
Source: STR
© 2022 CoStar Realty Information, Inc.
Quiz Questions continued
When can a competitive set be changed?
A. Only if your hotel has changed affiliations
B. At any time, although many wait until the beginning of the year
C. Only at the beginning of the year
D. Only when a hotel has a new general manager
Which is NOT a valid rule related to changing a competitive set?
A. If adding two hotels to a competitive set, both must be in different chains
B. A single hotel may be added to a competitive set if it has been open less than six months
C. Any single hotel may be added to a competitive set at any time
D. Any change must involve two or more hotels, e.g. add one/drop one, add two, drop two, etc.
104

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