Property Level Benchmarking and STAR Reports (ppt)

Report
STAR Reports – Analyzing
Property Level Performance
The SHARE Center
Supporting Hotel-related Academic Research and Education
Table of Contents
• STAR Report Foundations
• Introduction to the STAR Report
• Monthly STAR Reports
• Weekly STAR Reports
• Additional Property Reports
STAR Report
Foundations
Affiliations in the Hotel Industry
• Chain – the hotel brand
• Parent Company – the company that includes multiple
chains
• Management Company – operates a hotel for another
party
• Owner – there are many companies that own hotels
• Asset Management Company – represents the owner
• Membership or Marketing Groups – provide additional
benefits to hotels
• Independent hotels – an important part of the industry
Copyright 2011 Smith Travel Research
STR Geographic Categorization
• World
• Continents: Americas, Europe, Mideast/Africa, Asia Pacific
• Sub-continents – subsets of continents
(Americas: North Am., South Am., Central Am., & Caribbean)
• Countries – based on ISO/WTO definitions
• Regions – for certain countries such as US, Canada, UKM
(US: New England, Mid Atlantic, Southeast, East North Central, …)
• Markets – for major cities, also non-metro areas
(US: 162 markets)
• Tracts – subsets of markets
(US: 612 tracts)
• Additional geo. fields: state, county, zip code, city, MSA, lat/long,
user-defined
The STAR Report displays Market and Tract data of the subject hotel
STR Markets and Tracts
• STR markets represent
both metro and nonmetro areas
• Each market contains
at least two subdivisions called tracts
(or submarkets outside
North America)
• There are 162 US
markets and 613 tracts.
Over 500 markets
worldwide
STR Non-geographic Categorization
• Scale – 7 groups, based on average ADR of entire chain
Luxury, Upper Upscale, Upscale, Upper Midscale, Midscale,
Economy, & Independents (a list of all chains by scale is available)
•
•
•
•
•
Class – scale groups with independents included
Location: Urban, Suburban, Airport, Interstate, Resort, Small Town
Price – 5 groups, based on ADR relative to specific market
Size – based on number of rooms
Types: Extended Stay, Resort, Boutique, Casino, Golf, Ski, Spa,
Convention, Conference, All-suites, Full/Limited Service, Waterpark
• Additional non-geo. fields: Age, Corporate Housing, Condotel
Star Rating (WW) , User-defined (green, pet-friendly, …)
The STAR Report displays Scale and Class data of the subject hotel
Competitive Sets
• Which hotels directly compete with my property?
– Usually similar hotels
– Usually hotels in close proximity
– Numbers can include or exclude the subject property
• Hotels can have more than one comp set
– May have a local comp set and a 2nd that uses a broader
geographic area with more similar features, or one for
WD and another for WE, or Group/Transient
– The chain may have one comp set and the management
company may have another, or old versus new
Hotel Industry Metrics 101
• Supply = rooms available
• Demand = rooms sold
• Occupancy = demand / supply (percentage)
• ADR = room revenue / demand ($)
• RevPAR = room revenue / supply (per available room) ($)
• Percent Change = (this year # - last year #) / last year # (%)
Hotel Metrics 101 Continued
• Index = property # / comp set #
(number > or < 100)
• Penetration = Occupancy Index
• Yield = RevPAR Index
• Rank = property’s position among comp set for values
such as ADR (i.e.: 2 of 7)
• Share = property’s percent of total, for example a hotel’s
Demand Share would be their percent of the total Demand
versus their comp set
Hotel Date & Time Definitions
• Week = Sunday through Saturday
• Comparable Day = same day of same week last year,
most daily percent changes are based on comparable
days (“day to day”), versus “date to date” (MTD would
be based on date to date)
• Weekday = Sunday through Thursday
• Weekend = Friday and Saturday
Date & Time Definitions Continued
• MTD = from first to current day of month
• YTD = from January to current month
• Running #-month = last 3 or 12 months including the
current month, valuable for comparing current month to
longer time period or for graphing
• Running 28-day = last 28 days including the current day,
same advantage as above
• Running 4-week = last 4 weeks of data for a specific day
of the week
Segmentation and Additional
Revenue Definitions
•
Group = rooms sold in block of ten or more and
corresponding revenue
•
Transient = rooms sold at rack, corporate, package, or
government rates and corresponding revenue
•
Contract = rooms sold at rates stipulated by contracts
including airline crews and permanent guests
•
Food & Beverage Revenue = revenue from any F&B
establishment
•
Other Revenue = all revenue excluding room & F&B
Introduction to the
STAR Report
What 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 are continually being fine tuned and
new pages are added on a regular basis.
• The STAR Reports analyze your hotel’s performance:
–
–
–
–
–
Occupancy
Average Daily Rate (ADR)
Revenue per Available Room (RevPAR)
Demand (Room Nights)
Room Revenue
What is the STAR Report? - continued
• STAR Reports provide comparison to competitors:
– Index numbers
• greater than 100 means the subject is winning, less than 100
means the comp set is winning
– Ranking information
• Displayed in the format “# of #”, for example “2 of 7” means the
subject has the 2nd best value in the comp set of 7
• In addition to the comp sets, the STAR Reports also
provide comparison to various industry segments
– It is very important to compare the subject hotel to relevant industry
segments
– You can also compare the comp set to these industry segments
What is the STAR Report? - continued
• STAR Reports track performance for multiple time
periods
– Current month, week, and day
– YTD and MTD
– Running 3-month, Running 12-month, 28-day, and Running
4-week
• They also track year-over-year performance
– TY vs. LY percent change for all metrics and indexes
• There are additional pages that display specialized
information
STAR Reports – how and when?
• STAR Reports are Excel workbooks (or PDF documents)
with multiple tabs/pages. They include data tables,
graphs, and explanations.
• STAR reports are generated on a monthly, weekly, and
daily (mainly for non-NA) basis. Most are delivered to
hotels via email.
– Monthly: on or around the 17th
– Weekly: Tuesday night
– Daily: each day after noon
• Some companies obtain the STAR Reports from STR
and post them on their internal web site
Why do I need the STAR Report?
• Benchmarks your performance
• Allows you to keep an eye on your competitors and your
market
• Lends perspective to good and bad performance
• Aids pricing decisions, help improve profitability
• Allows you to monitor the effect of your business
strategies
• View Supply, Demand, & Revenue changes in your
market (new hotels, more travelers, more money)
Who am I compared to?
• Competitive Set: a set of 4 or more properties
• Market: for example Memphis or Nashville
• Market Class: subset of market with similar chain affiliated
and independent hotels (6 groups)
• Tract: geographic subset of market such as Memphis
Airport or Nashville South
• Tract Scale: subset of tract with similar chain or
independent hotels (4 groups). Scales are collapsed in this
segment (Luxury and Upper Up, Upscale and Upper Mid,
Midscale and Economy, Independents)
Monthly STAR Reports
Table of Contents
• First tab of the workbook
• Lists all the pages/tabs that are included
• Will list two additional pages for Daily participants (most
hotels)
• Will list eleven additional pages for Segmentation
participants (most Luxury and Upper Upscale hotels)
• Would include additional pages for hotels with 2nd, 3rd, or
4th comp sets
Monthly Table of Contents
Tab 1 - Monthly Performance at a Glance
• Provides a quick one-page overview of performance
relative to your comp set
• Displays Occupancy, ADR, and RevPAR for your
property and your comp set, also Index numbers and
Percent Changes
• For four points in time: Current Month, Year to Date,
Running 3-month, and Running 12-month
• Also displays basic information for the subject property
and the report settings at the top
Monthly Performance at a Glance
Tab 2 – STAR Summary
• Provides a detailed comparison of your property to
various industry segments and your comp set
• Displays Occupancy, ADR, and RevPAR, as well as
percent changes for each group
• For four points in time: Current Month, Year to Date,
Running 3-month, and Running 12-month
• Also shows Supply, Demand, and Revenue Percent
Changes; Census and Sample property and room
counts; and a Pipeline overview
STAR Summary - Hints
• Use this page to compare the subject hotel and the
comp set to the industry segments nearby. If the subject
is beating the comp set, but both are losing to the
industry segments, it might be worth checking the validity
of the comp set
• Check the Census/Sample section to see the relative
sizes of each industry segment
• Check the Supply, Demand, and Revenue percent
changes to see growth in your area. Are you getting
your fair share?
STAR Summary
STAR Summary – My Property vs. Comp Set and Industry Segments
• Rows display data for your hotel, 4 industry segments, and your comp
set
• Columns display values and percent changes for the current month,
YTD, running 3 month, and running 12 month time periods
• There are similar sections for Occupancy, ADR and RevPAR
STAR Summary – Supply, Demand, and Revenue Section
Percent changes for multiple time periods are
displayed
Supply: The number of rooms in the segment
multiplied by the number of days in the period.
Check to see if there are more rooms available
in each area
Demand: The number of rooms sold (excluding
complimentary rooms).
Check to see if there are more travelers in an
area.
Revenue: Total room revenue generated
from the sale (rental) of rooms.
Check to see if there is more money coming
into an area.
STAR Summary – Census and Participation Information
Participation information is displayed for the industry segments and comp set
Census: Total number of properties/rooms in a segment
Sample: The number of properties/rooms that report data to STR
Sample %: Percentage of rooms in each segment that report data to STR
Numbers generally decrease as you move from Market down to Comp Set.
Tract Scale will have the smallest number of properties after the Comp Set.
STAR Summary – Pipeline Information
Under construction: Ground
has been broken or the owner is
finalizing bids for the general
contracting
Planning: Project will go out
for bids, construction will start
within 4 months, or an
architect has been selected
and plans are underway
Provides a quick snapshot of pipeline activity in the market
Check this data for changes from month to month
Pipeline data is detailed further in the STR Market Pipeline Report
STAR Summary - Questions
• How does my property perform compared to its industry
segments?
• How does my property’s comp set perform compared to
its industry segments?
• How does the performance compare for different time
periods?
• What do the Supply, Demand, & Revenue Percent
Changes show about an area?
• Has the Pipeline data changed since last month?
Tab 3 – Competitive Set Report
• Provides a historic comparison of your property to your
comp set over time
• Displays Occupancy, ADR, and RevPAR, as well as
Percent Changes, Index numbers, and Ranking
information
• Shows 18 months of monthly data and 3 years of Year to
Date, Running 3-month, and Running 12-month
• Graphs monthly indexes (line graph) and RevPAR %
Change (separate bar graphs for YTD and Running
numbers)
Comp Set Report - Hints
• Review the graphs to see the interaction of the different
indexes over time
• Check the monthly data to compare current month
numbers to trends over last several months
• Check the annual data to compare current numbers to
longer trends
• Compare the percent changes to the actual values
• Compare the ranking numbers to the actual values
Competitive Set Report
Competitive Set Report – Graph of Indexes
The dotted line represents an Index of 100
The graph shows 18 months of Occupancy (blue), ADR (green=$), and
RevPAR (brown) indexes by month
Allows you to see interaction of indexes over time
Competitive Set Report – Another Sample Graph
Monthly Indexes
117
112
107
102
97
92
87
82
77
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Occupancy
Nov
ADR
Dec
Jan
RevPAR
Feb
Mar
Apr
May
Jun
100 %
Here is a hypothetical scenario. In April the hotel decided to raise ADRs.
They may have thought they had a loyal customer base. What
happened? (The occupancy was immediately affected to a significant
degree.) The hotel continued for several months and ADRs were still
affected. In June the hotel lowered ADRs and Occupancy returned.
Did the hotel do the wrong thing? (No, they should be trying things like
this. It did not have the intended results.) What else could they try?
Jul
Competitive Set Report – Monthly Data Tables
Monthly table displays 18 months of occupancy, ADR and RevPAR for
your hotel versus the competitive set
Includes % change calculations, index numbers, and ranking information
(Index = Property performance / competitive set performance X 100)
Competitive Set Report – Multi Month Data and Graphs
Tables display 3 years of YTD,
running 3-month and running 12month data with % changes, index
numbers, and ranking information
Graphs display RevPAR % change
Competitive Set Report - Questions
• How has the comp set performance changed during the
last 18 months and what seasonal trends exist?
• How has the YTD, Running 3 & 12 Month performance
changed over the last 3 years?
• What do the Index numbers and the Index Percent
Changes show?
• How are the Rank numbers and the Percent Change
Ranks?
Tab 4 – STAR Response Report
• Provides monthly calendars for this year and last year,
including special events
• Lists your hotel and every property in your comp set with
basic information and data participation detail for the last
three years
• Empty circles indicate monthly only; filled in circles
indicate monthly and daily; no circle means no data
• Check to be sure all properties in the comp set are
participating consistently
STAR Response Report
Displays info and participation for hotels in the comp set, also months and events
STAR Response Report – Questions
• Did all the properties in my comp set submit monthly
data?
• Did all the properties in my comp set submit daily data?
• Were there any room changes (adds or drops) to the
properties in my comp set?
• Did any of the hotels in my comp set close? (You can
check the Summary Page to track new hotels that are
opening in your area.)
Tab 5 – Day of Week and Weekday
Weekend Report
• Drills down into daily data by each day of week and
subtotals by Weekday and Weekend
• Provides Occupancy, ADR, and RevPAR for property and
comp set, plus Index numbers and Percent Changes
• Allows you to compare DOW and WD/WE performance
for Current Month, YTD, Running 3 and Running 12month
Day of Week and Weekday/Weekend
Report - Hints
• Compare subject versus comp set performance on
specific days of the week to look for opportunities to
improve. The subject hotel might be comfortably beating
the comp set when it comes to monthly numbers, but
might be losing on specific days or on weekends versus
weekdays.
• Compare current month and recent (Running 3-month)
performance to historic data (YTD, Running-12 month) to
check for trends and market changes. Are hotels in your
comp set working to improve on specific days?
Day of Week and Weekday/Weekend Report
Day of Week and Weekday/Weekend Report – Day of Week Data
• Displays
Occupancy,
ADR,
RevPAR, and
% changes
per each day
of the week
for the current
month, yearto-date,
running 3month and
12-month
periods
Day of Week and Weekday/Weekend Report – WD/WE Data
• Occupancy, ADR and RevPAR shown for weekday/weekend for the
current month, year-to-date, running 3 month and 12 month periods.
Day of Week and Weekday/Weekend
Report - Questions
• How did my hotel perform compared to the comp set on
weekdays versus weekends?
• How did my hotel perform compared to the comp set on
specific days of the week?
• Are there days where I am winning or losing
disproportionately?
• How does this performance vary over time?
Tab 7 – Daily Data for the Month
• Provides a recap of all the daily data for the current month
• Helps you reconcile the daily data to the monthly results
• Graphs daily index values during the month
• Should be similar to the daily data from your weekly
reports although there may be minor changes due to
adjustments. There are two types of adjustments:
– Adjustments made to monthly data not reflected in daily data
– Adjustments made to daily data after the fact that may not show
up on weekly reports
Daily Data For Month – My Property vs. Competitive Set
Daily Data For Month – Graph
The graph shows daily indexes for the month for Occupancy (blue),
ADR (green=$), and RevPAR (brown)
The dotted line represents an index of 100
Allows you to see interaction of the different indexes during the month
Daily Data For Month – Data Tables
• Compares the subject property data to the comp set
• Displays Occupancy, ADR and RevPAR for each day of the entire
month
• Includes Index numbers and ranking information
• The percent change section shows these values for each metric
Daily Data for the Month - Questions
• How did the daily data add up to the monthly numbers?
• Were there specific periods during the month where I
won or lost in Occupancy or ADR?
• How did special events contribute to the monthly
numbers and how did I compare at those times?
• Are there trends when I compare the daily data for this
month to the same page of prior months?
Segmentation and Additional
Revenue pages in STAR Reports
• Companies can subscribe to obtain these additional
pages (tabs) in their monthly STAR reports
• Most Luxury and Upper Upscale hotels receive these
pages. Many Upscale and Upper Midscale hotels also
receive them.
• An individual hotel can subscribe separately if there
company does not elect to subscribe
• Additional pages are also available in weekly STAR
reports
Tab 8 - Segmentation at a Glance
• The Segmentation at a Glance page provides a quick
overview for the current month and YTD
• This page displays Occupancy, ADR, and RevPAR totals
and a breakdown by:
– Transient
– Group
– Contract
• This page also displays related percent changes and
indexes
• See the prior definitions for these segments
Segmentation at a Glance
Segmentation Analysis pages
• There are several pages that provide a more detailed
analysis of the Segmentation data
• These pages display 18 months of monthly data and 3
years of YTD, Running 3 and Running 12 month data
• There are separate Occupancy, ADR, and RevPAR
Analysis pages that displays values and percent
changes for the subject, comp set, and Market Scale
• There is an Index Analysis page that displays all the
index numbers for the metrics above
• There is a Ranking Analysis page that displays all the
rank numbers for the metrics above
Segmentation pages - Hints
• The Segmentation pages allow a hotel to compare their
performance to their comp set and Market Scale
separately by each of the different segments
• The subject hotel might be beating the comp set when
looking at a total monthly number, but the comp set
might have a higher Group or Contract occupancy or
ADR
• Be sure to compare the subject hotel and the comp set
to the Market Scale. Do these other groups relay upon
Group and Contract business similar to the subject
hotel?
Segmentation RevPAR Analysis
Segmentation Index Analysis
Segmentation Ranking Analysis
Segmentation Day of Week pages
• The Segmentation Day of Week pages display
Occupancy, ADR, and RevPAR values and percent
changes for the subject property, the comp set, and the
Market Scale for Group, Transient, Contract, and Total
• Numbers are broken down for each day of the week
and for total weekday versus weekend, and a total
• There is one page for Current Month numbers and
another page for YTD numbers
• Use this page to compare segment performance on
different days of the week, for example Group numbers
on weekdays versus weekend.
Segmentation Day of Week – Current Month
Segmentation Day of Week – Year to Date
Segmentation - Questions
• How do I compare to my comp set and market scale
when it comes to separate Group and Transient
Occupancy and ADR?
• How do the Group and Transient numbers differ on the
Weekday versus the Weekend, or on individual days of
the week?
• How many of the hotels in my comp set submit
Segmentation data? If all hotels do not participate, how
does this affect the numbers?
Additional Revenue pages
• The Additional Revenue RevPAR Analysis page displays
Revenue Per Available Room for Rooms, Food &
Beverage, Other Revenue, and Total Revenue.
• The format is the same as the Analysis pages. It
displays 18 months of monthly data and 3 years of YTD,
Running 3 and 12-month data and Percent Changes
• The page also displays Ranking numbers that compare
the subject property to the comp set
• See the prior definitions for the Additional Revenue
segments
Additional Revenue RevPAR Analysis
Segmentation Response
• Provides monthly calendars for this year and last year,
including special events
• Lists your hotel and every property in your comp set with
basic information and segmentation participation detail
for the last three years, using the following codes:
– “s” – hotel has submitted Segmentation data
– “r” – hotel has submitted Additional Revenue data
– “B” – hotel has submitted both Segmentation and Additional
Revenue data
• Check which properties in the comp set are participating,
and if so, how consistently
Segmentation Response Report
Segmentation participation info is displayed for each hotel in the comp set
Additional Revenue - Questions
• How do I compare to my comp set and market scale
when it comes to Food and Beverage and Other
Revenue?
• How do the Additional Revenue numbers differ during
prior months and seasons?
• What do the ranking numbers show me about my F&B
and Other Revenue numbers compared to my Room
Revenue numbers?
Weekly STAR Reports
Intro to the Weekly STAR Reports
• Almost all hotels that receive Monthly STAR Reports
also obtain Weekly reports
• Weekly STAR reports originally started in the late 1990’s
as the industry saw the need for a more timely/dynamic
look at performance benchmarking
• These reports are generated on Tuesday evenings and
provide data for the prior week, Sunday through
Saturday
• If Monday is a holiday, the reports are postponed a day
Table of Contents
• First tab of the workbook
• Lists all the pages/tabs that are included
• Will list five additional pages for Segmentation
participants (light grey)
• Would include additional pages for hotels with 2nd, 3rd, or
4th comp sets
• Displays the start and end date of the current week, STR
number, and date created
Weekly Table of Contents
2 – Weekly Performance at a Glance
• Provides a quick one-page overview of weekly
performance relative to your comp set
• Displays Occupancy, ADR, and RevPAR for your
property and your comp set, also Index numbers and
Percent Changes
• For each day of the prior week plus a total for all seven
days
• Also displays Running 28-day data to compare each
separate day and the current week to historic
performance
Weekly Performance at a Glance – My Property vs. Comp Set
Tab 4 – Daily Data for the Month
• Provides a recap of all the daily data for the current
month so far, as of last week. If the week includes days
from two months, it will always show the prior month.
• The page also graphs daily index values
• Includes a Running Month-to-Date subtotal which can
serve as a “preliminary” indication of monthly results.
• The Month-to-Date results can still differ from the “final”
monthly data due to adjustments and if there are
participation differences
Daily Data For Month
3 – Perspective Pages
• There are separate Perspective pages for Occupancy,
ADR, and RevPAR
• These pages provide a recap of daily data performance for
the last 28 days, including Index numbers, Percent
Changes, and Ranking
• They include graphs of weekly numbers for the last 10
weeks for the property, comp set, and an industry
segment, such as Market Scale
• They include subtotals for the current Week, Running
MTD, and Running 28-day time periods
Perspective Pages
12 – Weekly STAR Response Report
• Provides calendars for this year and last year, including
special events
• Lists your hotel and every property in your comp set with
basic information and data participation detail, using the
following codes:
– “X” = both years
– “T” = this year
– “L” = last year
• Segmentation versions shows prior week participation for
three different types of data. Non-segmentation version
shows STAR participation for prior 28 days
Weekly STAR Response Report
Segmentation version shows current week and three different types of data
Non-segmentation version shows four weeks of STAR data
Weekly Segmentation pages
• A Weekly Segmentation at a Glance page summarizes
the daily metrics by Group, Transient, and Contract
• There are separate Analysis pages for Occupancy, ADR,
and RevPAR that display Group, Transient, and Contract
metrics for the subject property, comp set and Market
Scale for the last 28 days. They include subtotals by day
of week, current week, running 28-day, and MTD.
• There is an Additional Revenue page that displays
Revenue Per Available Room for Rooms, Food &
Beverage, Other Revenue, and Total Revenue. The
format is the same as the Analysis pages
Weekly Segmentation at a Glance
Weekly Segmentation Analysis Pages
Weekly Additional Revenue – F&B, Other, and Total
Weekly Report - Questions
• How do I compare performance for each day of last
week to typical performance on that day of the week?
• What different time periods do the Perspective pages
show me?
• What can I learn from the Segmentation and Additional
Revenue pages?
• Why do I need to check the Weekly Response report?
• How dependable are the monthly numbers on a Weekly
report?
Additional Property Reports
Daily STAR Reports
• Daily STAR Reports are received by most Non-North
American hotels and by North American hotels in
approximately 20 major markets
• Daily reports are emailed to hotels by the middle of each
weekday in all different time zones
• Reports display performance from the prior day or from
the weekend on Mondays
Daily STAR Report Pages
• There is Table of Contents page similar to other reports
• There is an “At a Glance” page for just the prior day
• There is a Running Month to Date page that displays
Occupancy, ADR, and RevPAR metrics and percent
changes for the subject hotel, the comp set and the
Market Scale. This page also displays index and
ranking information for the subject property versus the
comp set
• When the day falls early in the month, the report
includes a “Last Month” page which displays numbers
for the prior month
Daily STAR Property Report – Table of Contents
Daily STAR Property Report – At a Glance
Daily STAR Property Report – Running Month-to-Date
Daily STAR Property Report – Last Month
New Developments for STAR Reports
• Bandwidth reports – shows range of metrics
• RPM - RevPAR Positioning Matrix reports
• Spa STAR – special report for Spas
• Casino STAR – special report for casinos
• MComp – assistance with comp sets
• Online Create Report Tool (used by WW hotels)
Bandwidth Analysis Report - TOC
Bandwidth Analysis Report – Tab 2
RPM (RevPAR Positioning Matrix) Report - TOC
RPM (RevPAR Positioning Matrix) Report – Tab 2
STAR Spa Report
New - Spa related
performance data
Questions?
Steve Hood
[email protected]
615-824-8664, extension 3315
www.strglobal.com

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