One of the tasks were hoping to accomplish on this site to assemble a collection of resources to help you address the various areas of profitability and the measurements you see in the various sections. Now you know what they say about reinventing the wheel, and some of the items we track, trend, and report to you have been written about extensively.
So when we talk about resources, they could be: Videos of presentations we’ve done, PowerPoints, Articles, Specific instructions on implementing a strategy, or sample report formats. Now we aren’t so arrogant to think only WE can tell you how to improve. From time to time we will invite other industry professionals to add content, and in addition to that we will also put articles like this up to help you find resources related to a specific topic.
This month we are featuring Smith Travel Research’s STAR Report. I’m sure that you have heard of and are using the STR Report. In my dealings, I have come across very few owners and operators who haven’t heard of the STR report and/or review their STR report. The group of hotels who understand all of the various measurements and can make sound decisions based on what they see, is a much smaller group.
I asked a dear friend of mine once what was the biggest thing she thought most companies missed on the STR report. Now this wasn’t some neighbor or coffee friend, she was a Cornell educated, Hotel Underwriter, who has worked as an Asset Manager for one the largest hotel REIT’s. Her response was “Their Rank in the Comp Set”. Her contention was that Index only told part of the story, and that her question to operators centered more on what are your plans for improving your Rank in Occupancy, ADR, and REVPAR. What’s interesting about her approach is that, unless you are ranked first, the index is not the whole issue. In some markets, 2 or 3 hotels hold large indexes, while 3 or 4 hotels are well below fair share. This could be a bad comp set issue, it could be a lot of things, but focus on Rank is a much clearer goal for the hotels in positions 2, 3, and 4. Their indexes may say more about the failings of the bottom performers than anything about their own success.
The STR report is a valuable tool, a weapon to wield. How well you can use it, can determine how well you succeed.
What Smith has to Say
Why not start at the source. The STR website has a lot of good content, and mush of it is actually understandable. There are documents and videos that can help you to figure out “What is all this?”
The link below will take you straight to their documents page
This link will take you to their videos page.
This link will take you their Glossary of Common terms.
This is a quiz someone put together
Here is an easy to understand article about understanding Market Penetration
Sometimes the STR report results are skewed by a bad comp set. Yes there are rules you have to follow, but there are bet practices in selecting a comp set. Here are two articles about the subject.
Check these resources out. Email us with any specific questions about your hotel. If your index isn’t 100, let’s figure out why. If it is above 100, let’s see what your rank is. If you are above 100 and/or ranked #1, let’s talk about to protect your position. Highly Profitable hotels are predators. They are never satisfied and always looking to improve their position. There are hotels with REVPAR Index’s in the 200 range.