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Explore every domain tested on your Hotel Exam. Expand each section to see the subtopics you need to master.
Examines the structure of the hotel industry, including corporate affiliations, brand scales, and key stakeholders.
Covers how the hotel industry categorizes properties by geographic location and physical attributes.
Focuses on the creation, rules, and strategic purpose of competitive sets for performance benchmarking.
Details the foundational formulas and raw data used to calculate key performance indicators in the lodging industry.
Explores advanced comparative metrics, including index numbers, percent changes, and data aggregation rules.
Analyzes the structure and interpretation of STAR reports for property-level performance benchmarking.
Focuses on customized industry data reports used for feasibility studies, historical analysis, and profitability.
Examines future supply data, market-level destination reports, and census databases.
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Get All FlashcardsWhat is the standard formula used to calculate a hotel's Occupancy percentage?
Click to flipOccupancy is calculated by dividing Rooms Sold by Rooms Available, then multiplying by 100.
Formula: (Rooms Sold / Rooms Available) * 100. It measures the utilization of the hotel's available capacity.
How do you calculate the Average Daily Rate (ADR) for a hotel?
Click to flipADR is calculated by dividing total Room Revenue by the number of Rooms Sold.
Formula: Room Revenue / Rooms Sold. This metric strictly measures the average rate paid for rooms sold, excluding complimentary rooms.
What are the two valid formulas for calculating Revenue Per Available Room (RevPAR)?
Click to flipRevPAR can be calculated as (Room Revenue / Rooms Available) OR (Occupancy percentage * ADR).
RevPAR is considered the most important metric because it balances both rate and volume to show overall top-line performance.
What does a RevPAR Index (Revenue Generating Index) of 115 indicate about a property?
Click to flipIt indicates that the subject hotel is capturing 15% more than its fair share of revenue compared to its competitive set.
An index of 100 means the hotel is getting exactly its fair share. Anything above 100 is a premium.
In STR terminology, what is a Competitive Set (Comp Set)?
Click to flipA Comp Set is a carefully selected group of competing hotels to which a subject property compares its own performance.
Comp sets are used primarily for benchmarking performance and understanding market trends.
What is the STR 'Sufficiency' rule regarding competitive sets?
Click to flipThe sufficiency rule states that a comp set must have a minimum number of reporting hotels (usually 4, excluding the subject) for STR to display performance data.
This rule exists to protect the confidentiality and proprietary data of individual competing properties.
How does STR define the difference between a 'Chain' and a 'Brand'?
Click to flipIn STR terminology, 'Chain' and 'Brand' are synonymous and represent the hotel's specific affiliation (e.g., Marriott, Holiday Inn).
Parent companies (like Marriott International) own multiple chains/brands.
What is the standard formula for calculating 'Percent Change' in hotel metrics across two time periods?
Click to flipPercent Change is calculated as: ((This Year Value - Last Year Value) / Last Year Value) * 100.
This formula applies universally across Occupancy, ADR, and RevPAR to measure year-over-year growth or decline.
If a hotel's ADR increases by 5% but its Occupancy decreases by 5%, what happens to its RevPAR?
Click to flipThe RevPAR will experience a slight decrease.
Mathematically, 1.05 (ADR increase) * 0.95 (Occ decrease) = 0.9975, which translates to a 0.25% drop in RevPAR.
What is a STAR Report?
Click to flipThe Smith Travel Accommodations Report (STAR) is a benchmarking tool that compares a hotel's performance against its competitive set and local market.
It is typically delivered weekly, monthly, and annually to track market share and performance metrics.
What are the three main geographic categorizations used by STR to group hotels?
Click to flipThe three main geographic categories are Market, Tract (or Submarket), and Zip/Postal Code.
Markets are typically large cities or regions, while Tracts/Submarkets are smaller neighborhood-level divisions.
How does STR classify hotels by 'Scale'?
Click to flipSTR categorizes hotels into seven scales: Luxury, Upper Upscale, Upscale, Upper Midscale, Midscale, Economy, and Independent.
Unlike 'Class', which groups independent hotels into the chain scales, the 'Scale' category keeps Independent hotels in their own separate group.
What does 'Pipeline' data refer to in the hotel industry?
Click to flipPipeline data tracks future hotel supply, including properties that are under construction, in final planning, or in the planning stages.
Analyzing pipeline data is crucial for forecasting future competition and market saturation.
What does an Average Rate Index (ARI) of 90 signify?
Click to flipIt signifies that the subject hotel's Average Daily Rate (ADR) is 10% lower than the average ADR of its competitive set.
Formula: (Subject ADR / Comp Set ADR) * 100. An ARI below 100 means the hotel is underperforming in rate compared to peers.
If a hotel adds 50 rooms to its inventory but demand (rooms sold) remains exactly the same, how is RevPAR affected?
Click to flipRevPAR will decrease because the total room revenue is now divided by a larger number of available rooms.
Increases in supply without proportional increases in demand always dilute Occupancy and RevPAR.
How does STR define 'Contract Rooms' for reporting purposes?
Click to flipContract rooms are a consistent block of rooms sold at a significantly discounted rate for an extended period, typically to airline crews or permanent guests.
The contract must be ongoing for at least 30 days to qualify under this specific segment.
In a STAR report, what does a Rank of '2 of 6' for Occupancy indicate?
Click to flipIt means the subject hotel has the second-highest Occupancy percentage among the 6 total hotels in its competitive set.
The total number (6) always includes the subject property itself.
What is a 'Soft Brand' in the lodging industry?
Click to flipA soft brand allows an independent hotel to affiliate with a major chain to use its reservation system and loyalty program while maintaining its unique, independent identity.
Examples include Autograph Collection (Marriott) or Curio Collection (Hilton).
What is the difference between 'Transient' and 'Group' demand?
Click to flipTransient demand refers to individual travelers booking rooms at retail or negotiated rates, while Group demand refers to blocks of rooms (usually 10 or more) sold together for events or conferences.
Understanding the mix of Transient vs. Group business is vital for revenue management strategies.
What happens to a competitive set's data if a property in the set fails to submit their monthly data to STR?
Click to flipSTR will estimate the missing property's performance based on historical data and market trends to ensure the comp set data remains consistent.
This estimation ensures that the subject hotel still receives a usable STAR report even if a competitor is late in reporting.
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