hotel industry foundations and introduction for the philippines the share center supporting...

Hotel Industry Foundations and Introduction for the Philippines The SHARE Center Supporting Hotel-related Academic Research and Education

Table of Contents 1.Introduction to the Players in the Hotel Industry - Affiliations 2.Introduction to Geographic and Non-geographic Industry Categorizations 3.Introduction to Benchmarking in the Hotel Industry 4.Introduction to Hotel Math 5.Introduction to Hotel Industry Reports

Note regarding Training Content This PowerPoint contain a large number of slides. Material that is not critical for the Hotel Industry Foundations and Introduction certification exam is noted as optional. An instructor may or may not want to spend time covering optional content. Some instructors may want to spend additional time expanding on certain areas. Instructors are free to personalize the PowerPoint. Contact the SHARE Center if you have any questions or if we can help in any way.

Note regarding Application Exercises There are Application Exercises that are suggested at the end of each section. These are valuable since they offer hands-on experience working with live hotel data. The raw data that relates to these exercises can be found in a spreadsheet titled HIFI application exercises that come with the training program. You can obtain similar raw data that is relevant to a market or country closer to your university. Contact the SHARE Center if you have any questions or if we can help in any way.

Part 1 Introduction to the Players in the Hotel Industry Affiliations

Multiple Affiliations for a Single Hotel Chain Parent Company Management Company Owner Asset Management Company - optional

Chain The Chain represents the hotel brand, which is clearly displayed to the public on the building and in all interactions with the customer. STR uses Chain and Brand synonymously. There are hundreds of hotel chains throughout the world. In some cases, companies organize their hotels by different chains that may not be obvious to the consumer or traveler, for example: Hampton Inn vs. Hampton Inn & Suites Holiday Inn vs. Holiday Inn Express Best Western vs. Best Western Plus and Best Western Premier

Chain continued - optional Hotels have evolved but in many aspects have remained the same. The first Holiday Inn 1952 The newest Holiday Inn 2014

As of October 2014 * This is a list of the top chains in a sample country. STR can provide this information for any country that you are interested in. Top Chains in the Philippines (by number of rooms) - optional ChainPropertiesRooms Shangri-La Hotel42,077 Tune Hotels91,537 Eurotel Hotels9979 Holiday Inn3964 Microtel Inn & Suites by Wyndham13924 Marco Polo3890 Marriott2643 Sofitel Luxury Hotels1609 New World1598 Ascott2582 The Dusit Thani Group1538 The Peninsula Hotel1493 Days Hotels5479 Millennium Hotels1450 Quest Hotels1427

As of October 2014 Top 25 Chains in Asia Pacific (by number of rooms) - optional ChainPropertiesRooms 7 Days Inn1,028101,466 JinJiang Inns80399,217 Home Inn82895,858 GreenTree Inns69563,700 Toyoko Inn24246,709 Super 860745,001 Sheraton Hotel10841,943 Crowne Plaza11637,938 Holiday Inn12435,920 Route Inn21333,477 Shangri-La Hotel6328,322 Hilton7227,511 Hanting23427,508 Novotel Hotels10825,925 InterContinental6624,452 Motel 16812123,548 Hotel ibis12223,266 Vienna Hotel13222,506 Best Western25017,805 Holiday Inn Express Hotel6115,451 Westin4615,226 Howard Johnson4514,849 Hyatt4514,561 Apa Hotel6614,518 Washington Hotel5414,333

As of October 2014 Top 25 Chains in the World (by number of rooms) - optional ChainPropertiesRooms Holiday Inn Express Hotel2,315222,986 Holiday Inn1,184217,497 Hilton557199,076 Best Western2,779197,319 Marriott494177,438 Super 82,440156,430 Sheraton Hotel434153,140 Courtyard981144,816 Days Inn1,728134,286 Hotel ibis1,006126,464 Hampton Inn1,269122,576 Comfort Inn1,582118,234 Quality Inn1,399115,545 Crowne Plaza398111,528 Motel 61,105104,497 7 Days Inn1,028101,466 JinJiang Inns80399,217 DoubleTree39397,585 Home Inn83196,117 Best Western Plus1,04994,802 Ramada72390,371 Mercure Hotels71789,219 La Quinta Inns & Suites85485,425 Hilton Garden Inn60484,091 Hyatt19481,436

Parent Company Parent companies consist of multiple chains. Some people may use the term Group as a synonym for Parent Company. Often the parent company will have a variety of different types of chains. There are sample tables provided for four parent companies. A parent company may have a range of high-end, middle, and low-end chains; or they may concentrate in one area. Parent companies may have hotels around the world or in specific regions.

As of October 2014 Top Parent Companies in the Philippines (by number of rooms) - optional ParentCompanyPropertiesRooms Shangri-La Hotels52,389 Intercontinental Hotels Group51,559 Tune Hotels91,537 Wyndham Worldwide191,517 Ascott Group51,093 Eurotel Hotels9979 Marco Polo Group3890 Marriott International2643 Accor Company1609 New World Hotel Group1598 Carlson Hospitality Company2597 Best Western Company6591 Dusit Thani Public Company Ltd1538 The Peninsula Hotel1493 Millennium & Copthorne Global1450

As of October 2014 Top 25 Parent Companies in Asia Pacific (by number of rooms) - optional Parent CompanyPropertiesRooms Home Inns971124,107 Jinjiang International Holding963121,858 Intercontinental Hotels Group378115,795 Accor Company558110,750 Wyndham Worldwide868102,525 7 Days Inn1,028101,466 Starwood Hotels & Resorts28389,969 GreenTree Inns69563,700 Marriott International16251,956 Toyoko Inn24246,709 Hilton Worldwide12642,527 Huazhu Hotels Group33540,152 Route Inn21333,477 Shangri-La Hotels7633,185 Hyatt8729,946 Best Western Company30725,666 Vienna Hotel13222,506 Choice Hotels International33722,095 Prince Hotels & Resorts4916,797 Carlson Hospitality Company10015,548 Beijing Capital Tourism Co, Ltd7515,403 Washington Hotel Corporation5915,391 JAL Hotels Company4814,814 Apa Hotel6614,518 The Indian Hotel Company11613,822

As of October 2014 Top 25 Parent Companies in the World (by number of rooms) - optional Parent CompanyPropertiesRooms Hilton Worldwide4,214695,009 Marriott International4,017683,083 Intercontinental Hotels Group4,669674,577 Wyndham Worldwide7,541652,240 Choice Hotels International6,383507,666 Accor Company3,498462,203 Starwood Hotels & Resorts1,186345,145 Best Western Company3,982310,162 Carlson Hospitality Company1,090171,582 Hyatt548150,482 Home Inns974124,366 Jinjiang International Holding*963121,858 G6 Hospitality1,185113,011 7 Days Inn1,028101,466 Groupe du Louvre*1,17496,425 LQ Management LLC85485,425 Extended Stay Hotels68476,263 GreenTree Inns69563,700 Grupo Sol Melia19861,238 Whitbread Hotel Company68958,275 Vantage Hospitality96158,173 N H Hotels37056,857 Toyoko Inn24246,709 Fairmont Hotels11242,063 Riu Hotels & Resorts10541,439 *JinJiang International Holdings is acquiring Groupe du Louvre

Operation: Corporate, Franchise or Independent STR uses three different operation types: Corporate Franchise Independent A corporate hotel is a chain hotel owned and/or managed by the chain or the parent company. A franchise hotel is a chain hotel run by a third party where the chain receives some sort of franchise fee.

Operation: Corporate, Franchise or Independent continued An independent hotel is not affiliated with a chain or parent company. Here are the number of properties and rooms in the Philippines and the world by each Operation Type: Operation Philippines Properties Philippines Rooms Worldwide Properties Worldwide Rooms Corporate5414,07423,9754,098,267 Franchise272,70539,0163,971,136 Independent25530,295101,4277,239,761 As of October 2014

Independent Hotels Independent hotels are not affiliated with a specific chain. They may be managed or owned by companies listed on preceding pages. There are over 250 independent hotels in the Philippines in the STR database. There are over 100,000 independent hotels in the world in the STR database. Independent hotels vary considerably in size, price level, location, amenities and other attributes.

Chain Hotels versus Independents in China & WW Percentages based on Number of Rooms

Management Company A management company operates a hotel for another party. The company has a management contract where it receives payment and/or some portion of profits. Some chains or parent companies manage their own hotels. Management companies may manage a variety of different chains as well as independent hotels.

As of October 2014 Philippine Management Companies (by number of rooms) - optional Management CompanyTotal PropsTotal RoomsChain PropsChain RoomsIndep. PropsIndep. Rooms Shangri-La Hotels and Resorts52,389 5 InterContinental Hotels41,2114 Marco Polo38903 New World Hotels15981 Dusit Hotels & Resorts15381 CHM Hotels1512 1 Fairmont Hotels & Resorts3442 3 Archipelago International14271 Pan Pacific Hotels Group12361 Oakwood Asia Pacific12301 Eclipse Hotels & Resorts Int`l3213 3 Berjaya Hotels & Resorts12121 The Ascott Group11491 Frasers Hospitality1891 Amanresorts International Pte Ltd1401

As of October 2014 Management companies with 6,000 rooms or more; both chain and non-chain managed Top Asia Pacific Management Companies (by number of rooms) - optional Management CompanyTotal PropsTotal RoomsChain PropsChain RoomsIndep. PropsIndep. Rooms Jinjiang Inn Co., Ltd.881105,263 41,115 Starwood Hotels & Resorts22873,56422873,564 InterContinental Hotels19763,08019662,8531227 Hilton Managed10735,73110635,633198 Shangri-La Hotels and Resorts7232,0257232,025 Merrylin Holding Ltd14228,38814027,9072481 Jin Jiang Int'l Hotels Mgmt Co. Ltd.9423,6256714,257279,368 Vienna Hotel Group13122,04813122,048 BTG-Jianguo Hotels & Resorts5214,1624812,94941,213 JAL Hotels Company4413,2084413,208 Fujita Kanko Group4210,695277,843152,852 Tokyu Group Hotels & Resorts4210,4154010,1282287 Hankyu Hanshin Hotels5210,164307,079223,085 Archipelago International749,886719,5783308 Jinling Hotels369,616359,4371179 CTS HK Metropark Hotels359,255308,6475608 New Century Int`l Hotel Mgmt289,156237,84351,313 Toga Far East Hotels588,233588,233 Huazhu Hotels Group567,781567,781 Solare Hotels & Resorts477,540467,4131127 Frasers Hospitality357,101265,19691,905 Zhejiang Narada Hospitality Service276,973184,30092,673 H N A Internationl Hotels & Re316,856265,73551,121 Okura Hotels & Resorts216,686195,7942892 Swiss Belhotel Int'l.436,233436,233 Dorsett Hospitality International206,047195,7621285

Management companies with 10,000 rooms or more; no chain managed As of October 2014 Top Global Management Companies (by number of rooms) - optional Management CompanyTotal PropsTotal RoomsChain PropsChain RoomsIndep. PropsIndep. Rooms MGM Resorts1948,357 1948,357 Interstate Hotels14742,22211434,723337,499 Caesars Entertainment3341,36122,8613138,500 Crossroads22629,37321827,80481,569 Merrylin Holding Ltd14228,38814027,9072481 White Lodging16225,97616225,976 Vienna Hotel Group13122,04813122,048 Pillar Hotels & Resorts22621,79122521,6421149 Aimbridge Hospitality10021,2969219,02682,270 Louvre Hotels32621,09632621,096 Highgate Hotels3619,599167,2252012,374 Remington Hotels8116,0757114,681101,394 Crescent Hotels & Resorts7115,9566414,00671,950 The Procaccianti Group5315,1075114,9752132 Westmont Canada12114,53311914,1812352 Hersha Hospitality Management10914,0389612,649131,389 Ocean Properties, Ltd8113,9186110,639203,279 TMI Hospitality18413,19818313,147151 GF Management8512,2857210,368131,917 Sage Hospitality6512,0936111,3614732 Atlantica Hotel International8512,0827410,513111,569 Davidson Hotels & Resorts3911,8913811,837154 Destination4011,12151,214359,907 Columbia Sussex3411,0943411,094 Concord Hospitality7611,0207611,020 TOP International Hotels9410,825839,89911926 Fujita Kanko Group4210,695277,843152,852 John Q Hammons4310,5454110,0662479

Owner Companies There are many companies that own multiple hotels. There are six owner companies in the Philippines with 500 rooms or more. There are 46 owner companies worldwide with 10,000 rooms or more. Some chains or parent companies own their own hotels. Owners may own hotels from a variety of different chains.

As of October 2014 Philippine Owner Companies (by number of rooms) - optional Owner CompanyTotal PropsTotal RoomsChain PropsChain RoomsIndep. PropsIndep. Rooms Shangri-La Hotels and Resorts52,389 5 Waterfront Philippines, Inc51,328 52,389 Red Planet Hotels4695 4 New World Hospitality15981 Dusit Hotels & Resorts15381 The Ascott Group25092 The Peninsula Hotels14931 Berjaya Hotels & Resorts12121 Frasers Hospitality1891 Amanresorts International Pte Ltd1401

As of October 2014 Owners with 3,500 rooms or more; both chain and non-chain managed Top Asia Pacific Owner Companies (by number of rooms) - optional Owner CompanyTotal PropsTotal RoomsChain PropsChain RoomsIndep. PropsIndep. Rooms Shangri-La Hotels and Resorts6930,8596930,859 Prince Hotels4415,7264415,726 Apa Hotel Mgtco6513,9736513,973 Hilton2912,7162912,716 Greens Co., Ltd7510,917518,365242,552 Las Vegas Sands Corporation67,97532,22035,755 Solare Hotels & Resorts507,902497,831171 The Ascott Group417,255386,8633392 Okura Hotels & Resorts206,366185,4742892 Richmond Hotels336,345316,0902255 Kintetsu206,029144,83161,198 Pan Pacific Hotels Group155,697155,697 Tourism Asset Holdings Limite395,589325,1657424 Kempinski Hotels & Resorts155,554155,554 Far East Consortium Int`l Lim195,500185,2151285 Fortress Real Estate (Asia) GK425,426425,426 Accor Australia New Zealand Hospitality394,956374,7822174 Rydges Hotels & Resorts284,875264,7162159 JR Kyushu324,816314,5221294 Grand Hotels International224,580224,580 Far East Hotels204,2072640183,567 Erawan Group164,092164,092 New World Hospitality103,93293,6481284 Centara Hotels & Resorts153,925153,925 Sunroute Hotel153,894153,894 Regal Hotels International Limited63,8906 Mori Trust173,75951,909121,850 Oberoi Hotels & Resorts243,655223,557298 ITC143,615143,615

Owners with 10,000 rooms or more; no chain owners As of October 2014 Top Global Owner Companies (by number of rooms) - optional Owner CompanyTotal PropsTotal RoomsChain PropsChain RoomsIndep. PropsIndep. Rooms Host Hotels & Resorts13868,52713668,1492378 MGM Resorts1847,682 1847,682 Hospitality Properties Trust29143,29329143,293 Caesars Entertainment2938,10822,8612735,247 Archon Hospitality29132,31729132,317 Ashford Hospitality Trust12829,49012028,22081,270 R L J Lodging Trust14623,16214623,162 Pandox10622,2739820,06982,204 Xenia Hotels & Resorts9719,6329719,632 Louvre Hotels21616,39521616,395 FelCor Lodging Trust5215,8114915,1963615 Las Vegas Sands Corporation915,3929 Fattal Hotels8115,2607112,864102,396 Sunstone Hotel Investors3014,3002913,24611,054 InnVest Reit11314,17811213,9381240 Tsogo Sun9114,1578613,5955562 Apa Hotel Mgtco6513,9736513,973 Fiesta Hotel Company4813,9374713,925112 Moor Park Capital Partners9813,3489613,2032145 JER Partners15013,02514912,986139 TMI Hospitality18212,95618112,905151 Summit Hotel Properties9211,7679211,767 Apple REIT Nine8911,3718911,371 LaSalle Hotel Properties4611,140277,292193,848 DiamondRock Hospitality Comp2711,1002610,9941106 Grand City Hotels & Resorts8611,052719,587151,465 The Ascott Group7110,9766710,3544622 Greens Co., Ltd7510,917518,365242,552 Atrium4410,8944210,4152479 Grupo de Turismo Gaviota SA2810,36585,551204,814 Highgate Hotels1410,02783,55066,477

Owned by Felcor and Managed by Aimbridge Hospitality Hilton Worldwide owned and managed Owned and managed by Archon Hospitality

Asset Management Company - optional An Asset Management Company represents the owner in the operation of a hotel. A hotel may have both a Management Company and an Asset Management Company.

New Quasi Chains or Soft Brands - optional In recent years, several new chains have come into existence that some would say are really a cross between a chain and a marketing group for independent hotels. These chains have been created to be able to bring hotels under a Parent Company flag. The hotels can take advantage of the benefits available from the Parent Company. The following chains might be considered to be examples of this new phenomenon: Autograph by Marriott Luxury Collection by Starwood Andaz by Hyatt Ascend by Choice

Quiz Questions 1) Most of the entities below are classified as Chains. Which one is a Parent Company consisting of multiple chains? A.Hampton Inn B.Courtyard C.Starwood Hotels & Resorts D.Holiday Inn Express 2) 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 3) What are the three different operation types? A.Corporate, Managed, Independent B.Managed, Franchise, Independent C.Managed, Clustered, Independent D.Corporate, Franchise, Independent

Quiz Questions continued 4) 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 5) 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

Introduction to the Application Exercises There are sample Application Exercises at the end of each section. Instructors can utilize these however they wish. Instructors can select one exercise or use them all. The instructor can demonstrate one or more examples for each application exercises in class to make sure that students understand the steps. Instructors can have the students complete specific exercises. Students can work in groups or by themselves.

Application 1 Different types of players? 1.Find a recent article about a hotel company. (You can check HotelNewsNow.com or another hotel-related electronic news service or the internet.) 2.What type of hotel industry player is the company that you have chosen (chain, parent company, management company, owner or asset management company)? 3.Find other articles about other companies. Try to find different types of players. 4.Are there companies or organizations that you find that are not one of the five major types of affiliations?

Application 2 More about the players? 1.Select a specific hotel industry player (chain, parent company, management company, owner or asset management company) or another player in the hotel industry (association, tourism organization, developer, consultant, Wall Street firm). 2.What can you find about the current goals, company philosophy, number of hotels, number of staff, corporate locations and history of this organization. 3.See if you can find articles (HotelNewsNow.com or similar) with quotes from company representatives. 4.See if you can find out anything about the potential career- related opportunities that this company might offer.

Application 3 Chain versus independent hotels in countries around the world 1.Select a specific country somewhere in the world. 2.Obtain the STR Property and Room Count data for your country (by Chain and Parent Company). 3.Determine the number of Chain versus Independent hotels in your country and calculate the percentages based upon number of rooms. 4.Determine the top chains in your country by number of rooms. 5. Determine the top parent companies in your country.

Part 2 Introduction to Geographic and Non-geographic Industry Categorizations

Major Geographic Categories The major geographic categories are: World Continent Sub-Continent Country Market Submarket or Tract

Continents and Sub-Continents STR defines these related to the hotel industry. (Little different from the traditional seven continents.) There are 4 continents: Americas, Asia Pacific, Europe and Mideast/Africa. Each continent includes three to four sub-continents. The STR definitions roughly correspond to the UNWTO definitions when it comes to which countries are included in each continent and sub-continent.

CaribbeanCentral America AnguillaBelize Antigua & BarbudaCosta Rica ArubaEl Salvador BahamasGuatemala BarbadosHonduras BermudaNicaragua British Virgin IslandsPanama Cayman Islands CubaNorth America DominicaCanada Dominican RepublicMexico GrenadaGreenland GuadeloupeUnited States Haiti JamaicaSouth America MartiniqueArgentina MontserratBolivia Netherlands AntillesBrazil Puerto RicoChile St. Kitts & NevisColombia St. LuciaEcuador St. VincentFalkland Islands Trinidad & TobagoFrench Guiana Turks & CaicosGuyana US Virgin IslandsParaguay Peru Suriname Uruguay Venezuela Americas optional* * Countries and subcontinents provided for general perspective (no need to memorize)

Central & South AsiaAustralia & Oceania BangladeshAmerican Samoa BhutanAustralia IndiaCook Islands MaldivesFiji NepalFrench Polynesia PakistanGuam Sri LankaKiribati Marshall Islands Northeastern AsiaMicronesia ChinaNauru JapanNew Caledonia North KoreaNew Zealand South KoreaNiue MongoliaNorthern Mariana Islands TaiwanPalau Papua New Guinea Southeastern AsiaSamoa BruneiSolomon Islands CambodiaTonga East TimorTuvalu IndonesiaVanuatu Laos Malaysia Myanmar Philippines Singapore Thailand Vietnam Asia Pacific - optional

Eastern EuropeSouthern EuropeWestern Europe ArmeniaAlbaniaAustria AzerbaijanAndorraBelgium BelarusBosnia and HerzegovinaFrance BulgariaCroatiaGermany Czech RepublicCyprusLiechtenstein GeorgiaGibraltarLuxembourg HungaryGreeceMonaco KazakhstanItalyNetherlands KyrgyzstanIsraelSwitzerland PolandMacedonia MoldovaMalta RomaniaMontenegro RussiaPortugal SlovakiaSan Marino TajikistanSerbia TurkmenistanSlovenia UkraineSpain UzbekistanTurkey Northern Europe Denmark Estonia Finland Iceland Ireland Latvia Lithuania Norway Sweden United Kingdom Europe - optional Note that Israel is in Southern Europe.

Middle EastSouthern Africa (cont.) AfghanistanCape Verde BahrainCentral African Republic IranComoros IraqCongo JordanCote d'Ivoire KuwaitDemocratic Rep. of Congo LebanonEquatorial Guinea OmanEthiopia QatarGabon Saudi ArabiaGambia SyriaGhana UAEGuinea YemenGuinea-Bissau Kenya Northern AfricaLesotho AlgeriaLiberia Burkina FasoMadagascar ChadMalawi DjiboutiMauritius EgyptMozambique EritreaNamibia LibyaNigeria MaliReunion MoroccoRwanda MauritaniaSao Tome and Principe NigerSenegal SudanSeychelles TunisiaSierra Leone Somalia Southern AfricaSouth Africa AngolaSwaziland BeninTanzania BotswanaTogo BurundiUganda CameroonZambia Zimbabwe Mideast Africa - optional

A complete list of countries with prop & room counts is available. As of October 2014 Global Hotels by Continent and Sub-Continent - optional ContinentSub-ContinentPropertiesRooms AmericasCaribbean1,861222,580 Central America91357,340 North America64,2855,747,254 South America3,435360,278 Asia PacificAustralia & Oceania5,224312,230 Central & South Asia3,722251,057 Northeastern Asia14,6802,498,819 Southeastern Asia5,389680,157 EuropeEastern Europe4,662423,187 Northern Europe12,510870,004 Southern Europe18,1131,713,345 Western Europe24,2671,432,590 Middle East & AfricaMiddle East1,471253,797 Northern Africa1,458303,321 Southern Africa2,428183,205 TOTAL WORLD 164,41815,309,164

Countries STR uses the UNWTO definition when it comes to recognizing countries. There are over 200 countries with one or more hotels. There are over 40 countries with 50,000 rooms or more.

Room Revenue 12 Month Ending October 2014 Top Countries in the World (by number of rooms) - optional CountryPropertiesRoomsRoom Revenue United States53,2424,964,356$130,699,814,694 China11,0831,859,380$40,874,743,247 Germany9,592586,946$18,724,960,459 Spain4,728585,049$17,683,105,944 United Kingdom8,405531,520$20,413,638,941 Japan2,997526,337$19,160,859,919 France7,699472,173$26,016,960,319 Canada7,613434,789$11,769,676,152 Italy6,677376,530$14,627,587,117 Mexico3,426347,819$9,613,668,025 Turkey1,566246,720$7,956,809,141 Australia4,143244,407$10,964,803,968 India3,323214,360$4,213,187,677 Indonesia2,345211,324$4,336,893,978 Brazil1,622210,485$6,237,500,726 Greece1,922170,993$5,559,845,325 Thailand1,118170,271$4,434,514,519 Egypt609158,907$1,840,957,573 Malaysia552121,148$3,420,950,261 Portugal1,368115,766$2,954,360,956 United Arab Emirates551110,102$6,144,195,588 Netherlands1,987107,781$3,691,155,187 Switzerland2,382106,580$6,415,099,380 Russia707102,830$2,740,010,122 Austria1,685101,683$3,364,213,464

Markets Market is one of the most important geographic categories below Country, especially for a hotel General Manager. Markets are created based upon the number of hotels in an area and the participation. Markets are commonly thought of as cities (metro markets), although they are also used to represent more rural areas outside of the major cities (non-metro markets). In some countries, there may be a large number of markets. In other countries, especially developing areas, there may be just a small number of markets.

Sample Markets in the U.S. State of Tennessee (the logic is similar everywhere in the world) For example, in the state of Tennessee, there are four metro markets: Memphis Nashville Knoxville Chattanooga And one non-metro market for everywhere else Tennessee Area.

Worldwide Markets Countries contain varying numbers of markets. Markets are based upon the number of hotels and the participation. Smaller countries may consist of just a single market. Countries that are slightly larger may consist of a market for the major city and then a second market for all of the other hotels, named something like Country Name Area. Countries that are larger may consist of markets for several major cities and then an additional market for all other hotels. Larger countries will have many markets. Countries like the U.S. have over one hundred. No market will ever cross country boundaries.

Examples of Markets in Select Countries - optional Canada* United Kingdom China Atlantic Provinces Greater London Beijing Montreal Southeast England Shanghai Quebec Southwest England North China excluding Tianjin Toronto East England East China excluding Hangzhou Ontario East East Midlands Northeast China Ontario Southwest West Midlands South Central China Ontario North Northwest England Hong Kong SAR Ontario Central Yorkshire & Humberside Western China Saskatchewan/Manitoba Northeast England Hainan Alberta Scotland Hangzhou Vancouver Wales Shenzhen British Columbia Other Northern Ireland Tianjin Northern Canada Henan Guangzhou Sanya *Aligned with Statistics Canada

Canada

United Kingdom

STR uses internal 6-digit market numbers U.S. Markets (sample country) - optional

* Participation refers to hotels that submit performance data to STR, based upon number of rooms. This varies on a market-by- market basis. As of October 2014 Top 35 WW Metro Markets (based on number of rooms) - optional MarketPropertiesRoomsParticipation* Beijing, China1,275219,18837% Shanghai, China1,246212,96937% Las Vegas, USA379171,06516% London, United Kingdom1,322123,00768% Orlando, USA481121,18762% New York, USA623112,81685% Chicago, USA729109,74389% Washington DC, USA691107,16195% Tokyo, Japan44899,14741% Los Angeles/Long Beach, USA99297,86377% Atlanta, USA79093,91183% Guangzhou, China47682,27026% Dallas, USA62678,69581% Houston, USA78676,10681% Bangkok, Thailand34675,00545% Dubai, United Arab Emirates35170,34372% Paris, France1,04767,38422% Shenzhen, China36567,08335% Hong Kong, China20765,27252% Berlin, Germany63664,27355% Sao Paulo, Brazil43761,60642% Phoenix, USA44561,16887% San Diego, USA47359,64585% Hangzhou, China36558,44730% Singapore, Singapore25157,16864% Anaheim/Santa Ana, USA43254,75380% San Francisco/San Mateo, USA39651,42184% Boston, USA35551,11592% Miami/Hialeah, USA38249,08680% Barcelona, Spain52148,67540% Quebec, Canada1,19848,34622% Madrid, Spain39148,23149% Philadelphia, USA38146,27289% Jakarta, Indonesia27246,02640% Tampa/St Petersburg, USA45245,03575%

Submarket or Tract A Submarket is a geographic subset of a Market. The term Submarket is used outside of North America, while the term Tract is used in North America. Submarkets, like Markets are affected by hotel participation. They are reviewed annually to determine if new submarkets may be created based on growth in available supply and sample. The Submarket category, like the Market category is very important, especially for hotel GMs. Hotel data is often displayed at the Market and Submarket level.

Submarkets More Info Submarkets are geographic sub-divisions of a market. There may be anywhere from two to ten or more submarkets in a market. In a metro market, there is usually a submarket for the CBD (Central Business District). There may be other submarkets in a city identified such as North/South/East/West, or Airport/Beach, or they may have names for suburban neighborhoods. In non-metro (rural) markets, a submarket may represent a small city.

Sample Submarkets in the State of Tennessee (logic similar everywhere) In the state of Tennessee here are the Submarkets in each Market: Memphis: Memphis CBD, Memphis Airport/South, Memphis East, Memphis West (4) Nashville: Nashville CBD, Nashville Airport, Nashville I-65 North, I-24/Murfreesboro, Brentwood/Franklin, Nashville Other Areas (6) Knoxville: Knoxville, Knoxville Area, Gatlinburg/Pigeon Forge (3) Chattanooga: Chattanooga, Chattanooga Area (2) Tennessee Area: Bristol/Kingsport, Clarksville, East, Central, West Area (5)

*Note the average ADR differences. **ADR and Room Revenue in Pesos Occ, ADR & Room Revenue - 12 Month Ending October 2014 Philippine Submarkets (sample country) SubmarketPropertiesRoomsOccupancyADR*Room Revenue** Regional Philippines14011,68662.5%5,407.6014,263,151,377 Manila13126,34267.2%5,578.6035,606,721,861 Cebu Metro598,72767.6%4,923.2010,600,091,057

Revisions to Markets and Submarkets STR makes small revisions to markets and submarkets on a regular basis. The changes are based upon: Supply (new hotels opening) Participation (new hotels submitting performance data) Client feedback Most revisions are made at the end of the year, after December STAR Reports and before January STAR Reports. A smaller amount of changes, related to increased participation, are made in July at the half year point. Companies are notified of these changes.

Non-Geographic Categories In addition to geographic categories such as Market and Submarket, the hotel industry uses additional categorizations that are not related to geography. The two most important non-geographic categories for someone like a general manager are: Scale Class

Scale The Scale category is one of the most popular ways the industry looks at different hotels. There are seven Scale categories, six for chain hotels ranging from Luxury to Economy, and one Scale category for all Independent hotels. Check the average ADRs of the different scale groups on the next two slides. Note that in the Philippines they will range from Luxury (with an average over 7,400 pesos) down to Economy (with an average close to 3,000 pesos). The average ADR of the Independent Scale group (independent hotels) in the Philippines is close to 5,600 pesos.

*Note the average ADR differences. **ADR and Room Revenue in Pesos Occ, ADR & Room Revenue - 12 Month Ending October 2014 Philippine Scales (sample country) ScalePropertiesRoomsOccupancyADR*Room Revenue** Luxury Chains124,20568.7%7,846.508,989,231,159 Upper Upscale Chains92,95771.8%5,371.404,161,149,261 Upscale Chains82,66964.9%5,211.303,154,922,270 Upper Midscale Chains152,87666.5%3,598.002,385,049,692 Midscale Chains141,39159.7%2,120.00646,263,492 Economy Chains222,46167.1%2,934.901,528,924,173 Independents25030,19666.6%5,586.1040,674,245,267

Global Scales ScalePropertiesRoomsOccupancyADR**Room Revenue** Luxury Chains1,891497,81666.5%$282.10$33.6B Upper Upscale Chains4,8431,312,51470.1%$165.01$54.9B Upscale Chains10,8931,821,84669.9%$124.24$56.8B Upper Midscale Chains14,7051,680,23066.0%$101.80$40.7B Midscale Chains11,5501,105,05660.9%$78.75$19.3B Economy Chains19,0271,642,38162.2%$56.05$20.7B Independents100,9247,216,15761.5%$123.93$19.9B Occ, ADR & Room Revenue - 12 Month Ending October 2014 **ADR and Room Revenue is in US dollars

Scales and Consistency When a chain is categorized in a specific Scale group, that means every hotel in that chain is in that Scale group everywhere in the world, in every country and market. For example, the Ritz-Carlton chain is in the Luxury Scale group. That means every Ritz-Carlton hotel in the world will be a Luxury Scale hotel. For a second example, the Holiday Inn chain is in the Upper Midscale group. That means every Holiday Inn will always be an Upper Midscale hotel, even though in some parts of the world a single Holiday Inn might be much nicer than a typical Upper Midscale hotel.

How do Chains get grouped into Scales? Chains are positioned in Scale groups based upon ADR, not upon subjective criteria such as features or amenities. At the beginning of every year, STR subtotals all the hotels in the world by chain and calculates the average ADR per chain based upon the annual data for the prior year. Chains are sorted by the ADR amount from high to low. Breakpoints are determined between the different Scale groups. These breakpoints may move up and down slightly from year to year. Sometimes a chain will move up or down to the next higher or lower Scale group.

Which Chains are currently in which Scale groups? There are lists that follow that show which Chains are in which Scale groups. It is possible to obtain a similar list for a specific country or another area of the world. It is important to have a general perspective of which chains are in which Scale groups. No need to memorize.

Global Luxury Chains (with 25 or more properties sorted by room count) optional ChainPropertiesRooms InterContinental17860,191 Shangri-La Hotel7029,281 Sofitel Luxury Hotels11428,248 Fairmont6928,010 JW Marriott6527,785 Ritz-Carlton8524,882 Grand Hyatt4122,202 Four Seasons9220,098 Kempinski Hotels7319,918 Luxury Collection8516,793 W Hotel4512,996 Conrad268,381 Mandarin Oriental Hotel Group288,162 Daiwa Royal Hotels267,013 St Regis306,584 Park Hyatt336,567 Taj Group415,863 Hipotels275,282 Anantara313,590 Orient Express313,202 Amanresorts International Pte Ltd26815 As of Year-End 2013

Global Upper Upscale Chains (with 25 or more properties sorted by room count) - optional ChainPropertiesRooms ChainPropertiesRooms Hilton554195,410 Kimpton5910,966 Marriott488174,764 Delta Hotels3910,119 Sheraton Hotel435153,911 Steigenberger Hotels499,227 Hyatt19081,226 Sonesta Hotel348,305 Westin19876,279 Rotana277,428 Radisson Blu26060,910 Pestana466,838 Renaissance15451,950 Frasers Hospitality436,823 Embassy Suites21551,707 Southern Sun - Sun Hotels346,409 Wyndham Hotels9927,923 MGallery Hotel Collection515,311 Le Meridien9827,152 Sun International284,832 Pullman8023,653 Exclusive Hotels1204,613 Omni5020,192 Hoteis Othon304,340 Millennium Hotels4816,483 Joie De Vivre273,883 Hotel Nikko3913,537 Vivanta by Taj283,844 Autograph Collection5411,320 Marriott Executive Apartments263,641 Swissotel3011,285 Serena Hotels332,846

Global Upscale Chains (with 25 or more properties sorted by room count) optional ChainPropertiesRooms ChainPropertiesRooms Courtyard953140,537 AC Hotels by Marriott778,656 Crowne Plaza389108,367 Quest Serviced Apartments1558,616 DoubleTree36692,447 Hyatt House588,155 Mercure Hotels69686,311 Park Plaza388,149 Hilton Garden Inn58179,878 Hotel Husa748,033 Residence Inn65279,243 Dorint Hotels & Resorts417,323 Novotel Hotels40876,891 Grand Mercure417,222 N H Hotels32149,436 Copthorne Hotels347,072 RIU Hotel10040,355 Eurostars Hotel646,798 Homewood Suites33336,778 Hesperia Hoteles416,533 Springhill Suites30836,172 Thistle Hotels336,475 Radisson16834,867 First506,219 Disney Hotels3032,863 Hotel Indigo556,200 Four Points18032,519 Swiss-Belhotel International436,115 Scandic Hotel15029,099 Paradores925,934 Melia8828,179 Oaks Hotels & Resorts435,899 Iberostar Hotels & Resorts8427,852 Austria Trend Hotels & Resorts295,132 Hyatt Place19225,572 Silken Hoteles334,874 Staybridge Suites19621,518 Outrigger264,863 Club Med7221,407 Lindner Hotels, Inc314,774 Moevenpick7318,948 Clarion Collection454,226 Best Western Premier15918,488 Macdonald Hotels443,852 Prince Hotels4515,902 Coast Hotels & Resorts Canada273,530 Maritim4914,906 Hampshire513,130 aloft Hotels7913,425 abba253,032 Apa Hotel6113,308 Adina272,930 BTG-Jianguo Hotels & Resorts4512,390 OREA Hotel292,775 Ascend Collection11811,283 Hoteles Estelar252,335 Rica Hotels7911,092 Peppers Hotels282,163 Jin Jiang Hotel3911,092 Three Cities Hotel Group352,117 H10 Hotels3810,902 Oxford Hotels & Inns341,651 Thon Hotels649,854 EuroAgentur Hotel381,537 Jinling379,713 Hampshire Classic25957 Sokos Hotel499,278 As of Year-End 2013

Global Upper Midscale Chains (with 25 or more properties sorted by room count) - optional ChainPropertiesRooms ChainPropertiesRooms Holiday Inn1,188217,910 Wyndham Garden Hotel618,550 Holiday Inn Express Hotel2,256214,246Iberotel Hotels278,047 Comfort Inn1,619121,672Tulip Inn Hotel857,905 Hampton Inn1,254120,159 Citadines597,551 Best Western Plus1,116100,164 Jurys Inns327,530 Hampton Inn & Suites68470,583 City Express637,336 Fairfield Inn71065,107 Mantra547,314 Comfort Suites60647,515 Somerset Hotels407,211 Clarion27840,661 Ringhotels1226,923 Country Inn & Suites47538,220 Adagio City Aparthotel586,832 Park Inn13024,771 Rydges Hotels & Resorts366,742 Golden Tulip17324,149 Sandman Hotels & Inns436,417 Ramada Plaza10123,993 Richmond Hotels316,090 Quality21223,569 G S M Hoteles375,227 Barcelo Hotels7022,818 TOP International Hotel434,906 TownePlace Suites22422,182 FX Hotels Group394,722 Comfort20520,167 Hunguest254,274 Tryp by Wyndham10915,299 Xanterra Parks & Resorts254,188 Washington Hotel5414,333 Lexington293,542 Drury Inn & Suites7411,445 Cumulus273,537 Days Hotels6810,968 TOP City & CountryLine323,464 Sunroute6610,329 Village Urban Resorts253,103 Van der Valk Hotels779,965 Home2 Suites by Hilton272,928 Protea Hotel1099,658 Bastion Hotels312,855 Leonardo Hotels508,691 Sweden Hotels572,589 As of Year-End 2013

Global Midscale Chains (with 25 or more properties sorted by room count) - optional ChainPropertiesRooms ChainPropertiesRooms Best Western2,783198,068 Catalonia507,541 Hotel ibis970120,801Dormy Inn437,064 Quality Inn1,364113,730 InterCityHotel356,049 Ramada72889,795 Aston International385,982 La Quinta Inns & Suites83383,612 Grupotel345,435 Howard Johnson24229,858 Villages Hotel634,729 Candlewood Suites31129,695 Sercotel Hotels574,467 Sleep Inn39428,815 Shilo Inn353,809 Baymont Inn & Suites33027,216 TREFF Hotels413,738 Campanile Hotel39225,891 MainStay Suites453,549 Sol6422,173 Chisun Inn313,541 Vienna Hotel10417,898 Vagabond Inn402,905 ibis styles16816,159 Kibbutz Hotels322,861 Wingate by Wyndham16014,643 ACHAT Hotels262,807 Kyriad22412,923 Fletcher Hotels602,725 AmericInn20111,725 Oak Tree Inn302,210 Super Hotel9911,307 BreakFree Resort261,930 Red Lion539,220 Sarovar Portico291,877 Hawthorn Suites by Wyndham929,205 P`tit Dej Hotel371,397 Fiesta Inn598,527 WelcomHeritage38916 Daiwa Roynet Hotels367,935 As of Year-End 2013

Global Economy Chains (with 25 or more properties sorted by room count) optional ChainPropertiesRooms ChainPropertiesRooms Super 82,352150,181 B&B Hotels17813,910 Days Inn1,761137,385Motel One4610,245 Motel 61,081102,589 Best Hotels449,070 Home Inn81092,944 Studio 6768,187 JinJiang Inns71889,877 Suburban Extended Stay Hotels657,327 Extended Stay America64070,595 Balladins1307,284 Premier Inn67755,872 JI Hotels547,243 Econo Lodge91754,773 Red Carpet Inns1206,472 Americas Best Value Inn88852,557 Budget Host1525,811 Toyoko Inn24146,622 Crossland Suites435,584 7 Days Inn40642,749 America`s Best Inns945,536 ibis budget43241,231 GuestHouse Inns695,356 Travelodge, UK51038,177 Tune Hotels335,152 Red Roof Inn36037,080 Bestay Hotel Express694,938 Travelodge43532,503 Hotel Formule 1654,900 Hanting22726,720 Country Hearth Inn754,802 Rodeway Inn44325,221 Scottish Inns1164,461 Knights Inn38623,640 Starway313,408 Motel 16812023,536 Sun Suites Hotels253,254 Microtel Inn & Suites by Wyndham31322,379 Ginger Hotels292,812 Value Place18522,093 Shindom Inn262,344 GreenTree Inns17218,611 Old English Inn561,510 InTown Suites13817,974 Hotel Climat291,424 Hotel F123817,898 National 925973 Hotel Premiere Classe25217,748 Innkeeper`s Lodge44741 Howard Johnson Express21216,095 Good Night Inns32721 As of Year-End 2013

The Class Category The Class category is similar to Scale. The names of the categories are the same, but there is no Independent Class group. So there is only 6 Class categories, instead of the 7 Scale groups. Independent hotels are slotted into the Scale categories (Luxury through Economy) at similar ADR levels. Chain hotels are always in the same Class as Scale. So the Ritz-Carlton from before will always be in the Luxury Class group since it is in the Luxury Scale group. Class is used globally, but is especially popular outside of North America where there are more independent hotels.

Grouping Independent hotels into Classes Here is some more information regarding the methodology that is used to slot the independent hotels into the Class groups. On a country-by-country basis, or in the case of major markets, a market-by-market basis, the ADRs of participating chain hotels are analyzed and breakpoints are created between the different Scale groups. The independent hotels are then combined into the different groups based upon the ADR of the independent property compared to the chain hotels. This is done at the beginning of the year based upon annual data for the prior year.

How Independent Hotels are Slotted by Class Acme Hotel 2014 Annual ADR 5,550 PHP Luxury Chains Annual 2013 ADR Range 6,660-9,324 PHP Upper Upscale Chains Annual 2013 ADR Range 4,884-6,659 PHP Upscale Chains Annual 2013 ADR Range 3,996-4,883 PHP Upper Midscale Chains Annual 2013 ADR Range 2,886-3,995 PHP Midscale Chains Annual 2013 ADR Range 2,220-2,885 PHP Economy Chains Annual 2013 ADR Range 1,332-2,219 PHP Market Because the hotels rate falls within the Upper Upscale rate range of 4,884 to 6,659 they are slotted as Upper Upscale Class Independent Hotel

Importance of the Class Category Class is relied upon heavily, especially outside North America. Non-North American STAR reports compare a subject hotel to the Market or Submarket/Tract Class, in addition to the competitive set. Depending upon participation, the Class groups may be Collapsed or combined as follows: Luxury and Upper Upscale, Upscale and Upper Midscale, or Midscale and Economy. North American STAR reports compare the subject hotel to the Market Class (all the hotels in the same Market and Class) along with other industry segments.

Philippine Hotels by Class ClassPropertiesRoomsOccupancyADR** Room Revenue** Luxury Class347,75367.8%7,382.5014.8B Upper Upscale Class 365,91171.7%5,234.708.1B Upscale Class286,67566.4%4,986.807.9B Upper Midscale Class 9713,59661.2%3,551.3010.7B Midscale Class646,29159.7%2,119.902.9B Economy Class716,52967.3%2,939.304.4B Occ, ADR and Room Revenue 12 Month Ending October 2014 **ADR and Room Revenue is in Pesos

Global Hotels by Class ClassPropertiesRoomsOccupancyADR** Room Revenue** Luxury Class6,062942,42366.4%$277.98$62.7B Upper Upscale Class 12,2492,062,17769.4%$165.44$85.4B Upscale Class23,6503,012,88669.0%$125.08$93.9B Upper Midscale Class 29,1332,964,59965.5%$102.18$71.6B Midscale Class32,2912,2672,11760.8%$83.07$48.9B Economy Class60,4483,621,79860.3%$60.95$48.2B Occ, ADR and Room Revenue 12 Month Ending October 2014 **ADR and Room Revenue is in US dollars

Additional Non-geographic Categories - optional In addition to the Scale and Class, STR tracks several other non-geographic categories, including: Location Extended Stay Boutique very popular recently Destination Resort Additional Hotel Types such as All Inclusive, All Suite, B&B/Inn, Condo, Conference, Convention, Corporate Housing, and Timeshare Hotel Ratings generally inconsistent in most parts of the world

Quiz Questions 6) 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 7) 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. 8) 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 continued 9) 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 10) Markets and tracts 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 11) Which is a true statement regarding Tracts A.Tracts are referred to as Submarkets outside of North America B.Tracts are never used to represent a small city in a rural market C.Tracts are geographic sub-divisions of a Region D.A country will never have more than 100 Tracts

Quiz Questions continued 12) Changes to how Markets and Submarkets are geographically defined are made how often? A.Monthly B.Annually C.Every five years D.No regular schedule 13) Which two non-geographic categories are the most important for a hotel GM? A.Scale and Class B.Scale and Location C.Location and Type D.Class and Type 14) 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

Quiz Questions continued 15) 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 16) 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 market D.Once an independent hotel is slotted into a Class group, it will never change

Application 4 Categories for a Hotel 1.Obtain the STR Hotel Census Database for your country (or state). Contact the STR SHARE Center for assistance. 2.Select a specific hotel and then determine all of the various categories for your hotel (geographic and non-geographic groups). 3.What are the major geographic categories: continent, subcontinent, country, market, and tract/submarket? What additional categories (region or state/province if applicable)? 4.What are the non-geographic categories: scale, class? What is the location category? Is the property any special type of hotel (boutique, extended stay, destination resort)? Does the hotel offer any special amenities? 5.What else can you tell about the hotel from the Census database?

Application 5 Categories for a Market, starting a Market Study 1.When industry professionals conduct a market study, the goal is to learn about the hotel industry in a particular area, such as a country or city (or state). 2.An important part of a good market study is size and structure information about the market related to the various geographic and non-geographic categories. 3.Select a specific area such as a country or city. 4.Obtain Property and Room Count data for your area to help drill down into all of the various categories below the area that you choose. You can obtain this data from STR for any area of the world.

Application 5 Market Study continued 5.Identify the markets and tracts/submarkets within the area that you have selected. How many hotels are in each geographic category? 6.Determine the number of hotels in each Scale and Class Category. You can also do this for Chain, Location, and Extended Stay group. 7.You could check the Census database for your area and determine if there are any special type hotels (Boutique, Destination Resorts, Conference, ) 8.Summarize this information. What observations can you make about the area that you are studying?

Application 5 Market Study, Next Step 9.The Market Study that you started in this application contained size and structure information about your area. Keep this so that you can add more data to it at the end of the training. 10.Later you will learn about various industry reports that contain different types of data related to an area. 11.For example you can obtain a Trend Report for your area, that contains performance information (such as Year-to-Date or Annual Occupancy and ADR). 12.This type of data can be included in a market study to show how various hotels in your area are performing. More information will be provided at the end of the training.

Part 3 Introduction to Benchmarking in the Hotel Industry

Intro to Benchmarking in the Hotel Industry What is benchmarking? Levels of benchmarking: Property, Corporate and Tourism organizations Competitive set key questions: What, Why, Who and When Creating Comp Sets the Four Ps Rules for Comp Sets Changing Comp Sets Additional comp sets

Benchmarking 101: my hotel vs. the competition

Benchmarking in the Hotel Industry Individual hotels compare their performance to the performance of a competitive set of hotels. Individual hotels can also compare their performance to hotels in pre-defined industry segments near their hotel, for example the market or submarket where they are located. Companies compare their own properties to a variety of comparative groups of hotels to gauge the performance of their portfolio. Tourism organizations also compare their local area to comparable markets.

What is a Competitive Set? A competitive set is a group of hotels used primarily for comparison against a subject property for performance benchmarking purposes. The properties that comprise a comp set are competitive in nature; competing for the same guests and sharing similar qualitative and quantitative features.

How are Comp Sets used? Comp sets have an impact on several functions of a hotel from the day-to-day operations to managerial and top-level decisions. Comp set uses include, but are not limited to the following: Compare to the subject property for performance benchmarking purposes Aide the sales and marketing department Use in management contracts for performance requirements (often determines the amount of compensation managers receive) Use for internal and external analysis

Why are Comp Sets needed? Historically, hoteliers have relied on each other for performance information (price, quality, quantity etc.). Hotel staff would perform call arounds where they would talk to staff from competitive hotels. They might also count cars in parking lots or windows with lights on. There is no way of assuring whether entities are being honest with each other, or whether their information is pertinent or relevant to that of the seekers.

Why Comp Sets? - continued In the late 1980s, STR began collecting performance data from hotels and coined the term comp set within the hotel industry. STR essentially became a reliable place for hotels to get accurate aggregate information about their set of competitors. Aggregating means finding the averages based on the data from a group of hotels so that each individual hotel is protected from exploitation of their specific data. No individual property data is ever disclosed to another property.

Who chooses the Comp Set? For a small independent hotel it may be easy. The hotel owner may choose the comp set by themselves. For a larger hotel or a chain hotel, there are many stakeholders when it comes to choosing a comp set: the Management Company the Chain (corporate staff) the GM the sales and marketing team The selection process becomes important because often, especially in the case of a chain hotel, the GMs bonus is related to the performance of the hotel compared to the comp set.

Why dont I just choose a comp set that I can easily beat? great question It would certainly be a temptation to choose a comp set that a hotel could easily beat (a dog comp set with lower occupancies and ADRs). Since there are financial implications, corporate staff are going to ensure that the comp set is accurate. Then you also have to define beat. What does that really mean and how do companies measure that? We will see later in the training, that an accurate comp set is really in the best interest of the subject hotel and that most GMs actually benefit from having tougher comp sets.

Key Considerations When Creating Comp Sets When it comes to deciding upon a competitive set, you can think of the four Ps. Participation You obviously want hotels that submit data to STR. Proximity Normally, your competitors will be relatively close to your hotel. Pricing In most cases, your competitors will have similar prices to your hotel Product Your competitors will generally be similar to your hotel when it comes to features and amenities.

Key Considerations - Participation You obviously dont want hotels in your comp set if they dont submit data to STR. You can request Participation Lists which show basic hotel attribute information and participation details. Remember that participation can mean four different types of data: Monthly this is usually the default Daily most hotels submit daily data each day or each week Segmentation many hotels submit Rooms Sold and Revenue broken down by Transient, Group, and Contract Additional Revenue some hotels submit Food & Beverage and Other Revenue in addition to Room Revenue

Key Considerations - Proximity You can obtain a list of potential competitors from STR with specific fields that indicate the proximity related to your hotel. Distance from the competitor to the subject hotel. Market and Submarket - These categories will help you identify hotels that are geographically close to the subject hotel. You can also check other geographic fields such as City, Zip/Postal Code, County. Location This field can help show clusters of hotels related to some other entity, such as an airport, a downtown area, or a beach or resort area.

Key Considerations - Pricing On the list of competitors there will be several fields that provide some indication of the price level of the competitors. Scale If you are a chain hotel, the Scale category will help to identify similar chain hotels. It is not uncommon to look for competitors in one scale category above or below the subject. Class The Class Category will help to identify independent hotels that are in a similar category as the subject hotel. Fields such as Rack Rates (public info gathered through surveys) and Price Level can help provide some indirect pricing information. Price-related information can also be found on the internet.

Key Considerations - Product There are other fields that will describe the features of hotels. Number of Rooms In most cases the members of a Comp Set should be somewhat similar in size to the Subject hotel. Size is somewhat reflective of the type of business. Open Date The age of the hotel can help when considering Comp Set members. Hotel Type These fields (Boutique, Extended Stay, Convention, All-Suites, ) can help to identify hotels similar to the subject. Meeting Space Compare these values for possible competitors. Amenities Check these fields (Restaurant, Spa, Waterpark, Oceanfront, ) to help indentify similar hotels.

Key Considerations - Weighting When you are analyzing the various attributes of potential competitors related to Participation, Proximity, Pricing, and Product; careful consideration does need to be given to the weight of each of these attributes. One person may put a much higher priority on Proximity than Pricing, and another person might put a higher priority on Product over both of these. Depending upon your situation, you may need to sacrifice in one area or another. Later in this section, we will talk about the fact that a hotel might have multiple comp sets. One of the obvious advantages is that different comp sets can be weighted more heavily on one consideration versus another.

Additional Considerations - optional There is a great deal of external information that should be taken into consideration when creating comp sets. The web sites of potential competitors can give you an idea of the type of customer that they are targeting. Searching the internet can also help reveal the distribution and marketing strategies of potential competitors. Remember, you are trying to determine if a customer stays at your hotel, what other properties did they consider. Obviously many hotels conduct surveys to answer this question as well.

What is the Average Number of Properties in a Comp Set? The average number of hotels in a primary Comp Set is between five and six. There is slight variation by scale.

Rules related to creating Comp Sets STR has a set of rules when it comes to creating comp sets. The first rule relates to sufficiency. In North America and Asia Pacific, comp sets must include three or more hotels in addition to the subject. In Europe and Mideast/Africa, comp sets must include four or more hotels in addition to the subject. (This is related to strict EU anti-competition regulations.) Hotels are encouraged to have more than the minimum so if a hotel does not report for a time period for some reason, the comp set data will still appear.

Comp Sets Rules - continued The second set of rules relate to percentage checks They help to ensure that the data of a single hotel, chain or company is not isolated in the comp set. When percentages are calculated the rooms of the subject hotel, as well as those in the same chain and parent company, are excluded. These rules are sometime referred to as the 40/40/60 rule (NA and Asia) or the 50/50/60 rule (elsewhere) and relate to the maximum percentage based on rooms for a single property or chain (Holiday Inn, Comfort Inn) or company (Starwood, Choice, Interstate, Host).

Additional Comp Sets There are many cases where hotels have more than one comp set. Multiple comp sets can serve different benchmarking purposes. Hotels with multiple comp sets could have various key competitive features and/or unique qualities. When a hotel changes its comp set, they may elect to keep the old on for a period of time to provide perspective. A second comp set must differ from the primary comp set by at least two properties. The same rules apply as for changes.

Reasons for Additional Comp Sets There are a wide variety of reasons for additional comp sets: Local versus Regional one set nearby and another farther away Subject hotel is between two markets or cities Aspirational second set for hotels of higher quality or performance level Different sets focusing on different chains Different set for special niche (conference, water park, boutique) Index-focused (aiming to achieve a specific index) Different sets for Weekday/Weekend or Group/Transient mix Different entities may not agree chain versus management company An old comp set is linked to a prior contract Hotel wants to be compared to a different industry segment

Quiz Questions 17) 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 18) 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 19) 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

Quiz Questions continued 20) 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 21) 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 hotels opening D.A competitive set may be created three months before a hotel opens 22) 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

Quiz Questions continued 23) 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 24) Which is a valid rule related to creating a competitive set? A.Comp sets must include five 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.No single company can account for more than 75% of the total participating room supply of a comp set D.When percentages are calculated, the rooms of the subject hotel, as well as the same chain and parent company, are excluded

Quiz Questions continued 25) 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 26) 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.A 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.

Application 6 Creating Comp Sets 1.Obtain a Radial Participation List for a specific hotel. In the Application Exercise raw data file, there are Radial Participation Lists on different tabs for sample hotels (different scales, sizes, areas) in the Philippines. You can obtain samples relevant to your area if you would like. Shangri-La Edsa Manila (Luxury Class) Dusit Thani Manila (Upper Upscale Class) Marriott Manila Hotel (Upper Upscale Class) New World Manila Bay Hotel (Upper Midscale Class) Ramada Manila Central (Midscale Class)

Application 6 continued 2.Identify the important the fields in the Participation List based upon the guidelines related to the four Ps. Fields could include Distance, Class, Number of Rooms and Meeting Size. 3.In each of these fields, compare the values of the subject hotel to the potential competitors to narrow down the choices. 4.Check the Participation fields to see what types of data the Subject hotel submits compared to the potential competitors. 5.What other fields could be useful to identify competitive hotels? 6.You can use the internet to collect additional data regarding competitors, related to pricing, hotel web sites, amenities and target customers. 7.Can you suggest a second comp set for your subject hotel?

Application 6 Excel Alternative Depending upon your experience with Excel, here is a suggested set of steps to help determine potential competitors using basic Excel steps. 1.Obtain a Radial Participation List for a specific hotel. Highlight the subject hotel, the whole row. 2.The list is sorted by the Distance field. Look at the hotels and the distances and determine a best case number for the first range. (This could be 1 mile for one hotel and 10 miles for a different hotel.) Using a different color, highlight just the Distance values (numbers only in the Distance column) for the hotels in the best case first range. Determine the number for a second range and highlight the next group with a different shade of the same color. 3.Use the Excel Sort program to sort the Participation List by the Class column. Find the subject hotel and identify other hotels that are in the same Class as the subject. Using a different color, highlight just the Class values (Class names only in the Class column) for the hotels in the same group as the subject. Identify the hotels in one Class group higher or lower than the subject, and highlight these hotels with a different shade of the same color.

Application 6 alternative continued 4.Using different colors, repeat the process for the Number of Rooms and Meeting Space fields. For the first closest range, you might select hotels that are within 50 (you decide on the number) rooms (or 2000 square feet when it comes to meeting space) higher or lower than the subject hotel. Then for the second range, pick another number higher or lower than the first range and highlight that with a different shade. 5.If there are other fields that are important, you can repeat the process for additional fields. Then use Excel to sort the hotels by Distance to return to the original order. 6.Review the hotels in distance order looking for ones that have similar values to the subject in each of the fields that you used. The highlights will make this easier to see. 7.Check the Participation fields to be sure the potential competitors submit similar data as the subject. 8.This method helps you come up with a good list of potential candidates. Investigate the competitors more to confirm your decisions.

Part 4 Introduction to Hotel Math

Introduction to Hotel Math What is Raw Data? Key Performance Indicators sample formulas Percent Changes - sample formula Multiple Time Periods sample methodology Comparing Property Data to Other Groups of Hotels

Sample Raw Data Here is a sample monthly raw data file that STR would receive from a hotel company. Most raw data is exported from hotel company systems. It contains data for multiple hotels. Daily data is also reported on either a daily or weekly basis. Fictitious data, of course

STR Data Guidelines STR uses a strict set of definitions based on the Uniform System of Accounts for the Lodging Industry. Supply (Rooms Available) the number of rooms in a hotel multiplied by the days in the month. Demand (Rooms Sold) number of rooms sold by a hotel, does not include complimentary rooms or no-shows (reservations not cancelled). Revenue total room revenue generated from the sale of rooms, not including taxes. Includes service charges not resort fees, nothing else such as F&B. The Uniform System of Accounts is available from the AHLA or HFTP.

Key Performance Indicators From these raw data values, STR calculates the three hotel industry key performance indicators (KPIs): Occupancy - % Average Daily Rate (or ADR) - $ Revenue per Available Room (or RevPAR) - $ important metric, based upon all rooms, combination of occupancy and ADR. KPIs are Occupancy, ADR, and RevPAR.

Occupancy Definition The percentage of available rooms that were sold during a specific time period. Calculation Occupancy is calculated by dividing the Demand (number of rooms sold) by the Supply (number of rooms available). This is a percentage. (Remember you divide the smaller number by the larger number.) Occupancy = Demand / Supply or Occupancy = Rooms Sold / Rooms Available

Monthly Occupancy - Formula ABCDEFG 1SupplyDemandRevenue(Formula) Occupancy (%) 2 Jan-10 31002345198765 C2 / B2 * 100 75.6 3 Feb-10 28002002175432 C3 / B3 * 100 71.5 4 Mar-10 31001776175012 C4 / B4 * 100 57.3 5 Apr-10 30002468234567 C5 / B5 * 100 82.3 6 May-10 31002987312345 C6 / B6 * 100 96.4 You could multiply times 100 (then format as a number with one decimal) or format as a percentage (adds % symbol). Hotel Math Fundamentals Excel.xlsx - Occupancy!A1

ADR Definition A measure of the average rate paid for rooms sold during a specific time period. Calculation ADR is calculated by dividing the Room Revenue by the Demand (Rooms Sold). This is a dollar amount. ADR = Revenue / Demand

Monthly ADR - Formula ABCDEFG 1SupplyDemandRevenue(Formula)ADR ($) 2Jan-10 31002345198765 D2 / C2 84.76 3Feb-10 28002002175432 D3 / C3 87.63 4Mar-10 31001776175012 D4 / C4 98.54 5Apr-10 30002468234567 D5 / C5 95.04 6May-10 31002987312345 D6 / C6 104.57 You could format as a $ (adds symbol) or as a number with two decimals. Hotel Math Fundamentals Excel.xlsx - ADR

RevPAR Definition A measure of the revenue that is generated by a property in terms of each room available. This differs from ADR because RevPAR is affected by the amount of unoccupied rooms, while ADR only shows the average rate of rooms actually sold. Calculation RevPAR is calculated by dividing the Room Revenue by the total number of Rooms Available, the Supply. This is a dollar amount. RevPAR = Revenue / Supply

Monthly RevPAR Formula ABCDEFG 1SupplyDemandRevenue(Formula)RevPAR ($) 2Jan-10 31002345198765 D2 / B2 64.12 3Feb-10 28002002175432 D3 / B3 62.65 4Mar-10 31001776175012 D4 / B4 56.46 5Apr-10 30002468234567 D5 / B5 78.19 6May-10 31002987312345 D6 / B6 100.76 You could format as a $ or as a number with two decimals. Hotel Math Fundamentals Excel.xlsx - RevPAR!A1

Hint Importance of RevPAR RevPAR is a very important metric for the Hotel Industry since it is a combination of Occupancy and ADR. A hotel could have a 100% Occupancy because of a low ADR. The RevPAR will reflect that. A hotel could have a very high ADR, but only sell one room. The RevPAR will reflect that as well. Frequently when a hotel (or the GM) is evaluated or measured, RevPAR is the metric that is being looked at.

Percent Changes Definition The comparison of the This Year (TY) number versus the Last Year (LY) number, whether a raw value or a KPI. The percent change illustrates the amount of growth (up, flat, or down) from the same period last year. Calculation The This Year number minus the Last Year number divided by the Last Year number. This is a percentage. Percent Change = (This Year Last Year) / Last Year * 100 Remember the parentheses for the order of operations.

ABCDEFG 1 This Year Last Year Percent Change 2 Demand (Formula)Demand 3Jan-102345 2456 (B3-D3)/D3*100-4.5 4Feb-102002 2112 (B4-D4)/D4*100-5.2 5Mar-101776 1750 (B5-D5)/D5*1001.5 6Apr-102468 2345 (B6-D6)/D6*1005.2 7May-102987 2555 (B7-D7)/D7*10016.9 Demand Percent Change You could multiply times 100 or format as a percentage. Hotel Math Fundamentals Excel.xlsx - DemandPercentChange!A1

Hint - Percent Changes in General Percent Changes are closely scrutinized by the industry. A positive Percent Change indicates that the number this year is greater than the number last year. For example the Occupancy or ADR value is growing or improving. A negative Percent Change indicates that the number this year is less than the number last year. For example the Occupancy or ADR value is decreasing or getting worse.

Hint - % Changes for Raw Values The Percent Changes for raw values such as Supply, Demand, and Revenue are valuable bits of information. Supply Percent Change shows whether there are more or less rooms available in the hotel(s) or market this year versus last year. Demand Percent Change shows whether there are more or less rooms sold (guests spending the night) this year versus last year. Revenue Percent Change shows whether there is more or less money being made by the hotel or hotels (and therefore being spent by those guests).

ABCDEFG 1 2010 2009 Percent Change 2 ADR (Formula)ADR 3Jan-1084.76 81.93 (B3-D3)/D3*1003.5 4Feb-1087.63 88.85 (B4-D4)/D4*100-1.4 5Mar-1098.54 100.07 (B5-D5)/D5*100-1.5 6Apr-1095.04 95.24 (B6-D6)/D6*100-0.2 7May-10104.57 116.93 (B7-D7)/D7*100-10.6 ADR Percent Change You could multiply times 100 or format as a percentage. Hotel Math Fundamentals Excel.xlsx - ADRPercentChange!A1

Hint - % Changes for KPIs Occupancy Percent Change shows whether the Occupancy this year is greater or less rooms than the Occupancy last year. This could be related to Supply and Demand changes. ADR Percent Change shows whether the average rate this year is greater or less than the average rate last year. RevPAR Percent Change shows whether the RevPAR amount is greater or less than the amount last year. This could be related to Occupancy and ADR differences.

Multiple Time Periods - Monthly Multiple time periods for monthly data include: Year-to-Date (YTD) January through the current month of the current year. Running 12-Month the current month plus the prior 11 months, also called a 12-Month Moving Average. Running 3-Month the current month plus the prior two months. The metrics for all of these time periods are based upon the aggregated raw monthly data. So you aggregate the Supply, Demand, and Revenue for all the months and then apply the Occupancy, ADR, and RevPAR formulas.

ABCD 1 SupplyDemandRevenue 2Jan-1031002345198765 3Feb-1028002002175432 4Mar-1031001776175012 5Apr-1030002468234567 6May-1031002987312345 7(Formula) sum(B2:B6) sum(C2:C6) sum(D2:D6) 8May YTD15100115781096121 YTD Supply, Demand, & Revenue You can use the SUM function to aggregate the raw values. Hotel Math Fundamentals Excel.xlsx - YTDSupplyDemandRevenue!A1

ABCDEFG 1 SupplyDemandRevenueOccupancyADRRevPAR 2Jan-1031002345198765 3Feb-1028002002175432 4Mar-1031001776175012 5Apr-1030002468234567 6May-1031002987312345 7YTD1510011578109612176.794.6772.59 8(Formula) C7/B7*100D7/C7D7/B7 YTD Occupancy, ADR, & RevPAR Hotel Math Fundamentals Excel.xlsx - 'YTD Occ, ADR, RevPAR'!A1 Aggregate the raw values, then apply same formulas as before.

How not to calculate metrics for multiple time periods? Numbers for multiple time periods never use straight averages of monthly values. Some people mistakenly compute YTD occupancy, for example, by adding the occupancy of each month and dividing by the number of months. This gives you a number which is close to the accurate number, but this methodology assigns the same weight to each month, instead of weighting based upon the number of days in each month.

Index Numbers Index numbers are another example of a formula used by the hotel industry. Index numbers compare the performance of the subject property to the comp set. Here is the formula: Subject Value / Comp Set Value * 100 A number greater than 100 means the subject property outperformed the comp set and a number below 100 means the comp set outperformed the subject property. Index numbers are available for Occupancy, ADR, and RevPAR. They are relied upon heavily. Index numbers are percentages, multiple * 100 or format as %.

ABCDEFGHIJ Subject PropertyComp SetIndex Numbers 1 Occu- pancyADR Rev- PAR Occu- pancyADR Rev- PAROccupancyADRRevPAR 2May-1096.4104.57100.7678.987.8069.29122.2119.1145.4 3(Formula) B2/E2*100 C2/F2*100 D2/G2*100 Occupancy, ADR, & RevPAR Indexes Hotel Math Fundamentals Excel.xlsx - 'Occ, ADR, RevPAR Indexes'!A1 Calc KPIs for Subject & Comp, then apply Index formula.

Hotel Math The math used in basic hotel industry performance metrics is not too challenging. There are a set of formulas that someone needs to understand, such as Occupancy, ADR, RevPAR, Percent Changes and Index Numbers. There are methodologies that someone needs to understand, for example a YTD number is based upon aggregated data, not straight averages. The hotel industry relies heavily upon data and the ability to effectively analyze that data is an important skill.

Quiz Questions 27) The definitions for Supply, Demand and Revenue used by STR and others in the lodging industry are taken from what source? A.Lodging Industry Accounting Fundamentals Guide B.Uniform System of Accounts for the Lodging Industry C.Hotel Book Keeping for Dummies D.Modern Hotel Industry Accounting 28) Which statement is true regarding raw data that is submitted to STR? A.A small amount comes in the form of raw data files B.Most data is entered online C.There are limited error check programs D.The majority of data is exported from the hotel company systems 29) Which is true regarding the type of performance data (Supply, Demand, Revenue) that STR receives? A.Daily only B.Daily and monthly only C.Daily, weekly, and monthly D.Daily, weekly, monthly and quarterly

Quiz Questions continued 30) Which statement is true regarding RevPAR? A.It is almost always higher than ADR B.It can be thought of as a combination of Supply and Demand C.When a hotel or GM is evaluated, the RevPAR metric is rarely considered D.It can be thought of as a combination of Occupancy and ADR Use the spreadsheet below to answer questions 31 ABCDEFG 12013SupplyDemand Revenu eOccupancyADRRevPAR 2Jan46502883374790 3Feb42002394304038 4Mar46503255462210 5Mar YTD 31) The March YTD Occupancy (E5) is _______. A.62% B.63.2% C.65% D.60.5%

Quiz Questions continued Use the spreadsheet below to answer questions 32 ABCDEFG 12013 Occupancy This Year ADR This Year Occupancy Last Year ADR Last Year Occupancy % Change ADR % Change 2Jan63.7$120.4062.4$118.72 3Feb66.3$133.7465.3$126.43 4Mar68.5$142.6567.7$133.70 5Apr68.2$138.0068.9$135.92 32) The Average Daily Rate percent change for April (G5) is ______. A.2.1% B.-2.1% C.1.5% D.1.4%

Application 7 Monthly Data 1.Obtain a sample raw monthly data file (in Excel) with 48 months of property data for single sample hotel. 2.The file will contain columns for STR Number, Month Date, Supply, Demand, and Revenue. 3.Create three columns at the end for Occupancy, ADR, and RevPAR. Enter the formulas for each metric and copy the formulas to each row. 4.Insert one column after each of the six metrics and add formulas for percent changes. You will have to compare the This Year value to the Last Year value which appears 12 rows above. You will not be able to derive these metrics for the first year of data. 5.What can you learn about this single hotel by analyzing the data that you have just computed?

Part 5 Introduction to Hotel Industry Reports

Introduction to Hotel Industry Reports Property Level the STAR Report Ad-Hoc Reports Trend Report Profitability/HOST Report Pipeline Report Destination Report

Types of Hotel Industry Reports A wide variety of reports are used to help analyze different aspects of the hotel industry. Here are the major types: Property-level Reports comparing a single property to other sets of hotels Ad-Hoc Reports analyzing various performance or development metrics for a set of hotels Destination Reports analyzing performance data for multiple sets of hotels

Property Level Reports - the STAR Report The most popular property level report used by the industry is the STAR Report. The name STAR stands for Smith Travel Accommodations Report. The original version of this report was launched in 1987. The STAR Reports compare the performance of the subject hotel to other comparative groups of properties. STAR Reports are generated on a monthly, weekly and daily basis.

STAR Report Details STAR Reports are normally generated in the form of Excel workbooks. They are automatically distributed electronically to staff persons responsible for each hotel. No one else has access to a STAR Report for an individual hotel. The STAR Reports contain multiple tabs/pages with lots of different types of data. Experienced hotel staff use this data to improve the performance of the hotel versus their competitors.

Sample Monthly STAR Report We will review three tabs of a sample Monthly STAR Report. These are among the most popular pages: Table of Contents displays the subject hotel name, date information, and a list of all the pages included Monthly Performance At A Glance Page Competitive Set Page

Monthly Table of Contents

Tab 2 - 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 (subject property value/comp set value) 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.

Monthly Performance at a Glance

At a Glance - Hints Use this page to obtain a quick performance overview of the subject hotel compared to the comp set. Check the KPI Index Numbers for the current month. Check KPI actual values for your hotel and the comp set. Check the Percent Changes for the Indexes and the actual values to analyze year-over-year performance. Compare the Current Month metrics to the other time periods displayed to see how the current month performance compares to recent trends. Running Index numbers and Percent Changes will provide a longer term perspective.

Tab 4 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 (subject property value/comp set value), and Ranking information (subject property positi

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