Understanding STR Report
Understanding STR Report, What We Need to Know About STR Reports by Smith Travel Research” The importance of STR reports in this sector is apparent because the company’s primary goal is to provide any kind of information necessary to benchmark, monitor, or make any decision regarding establishments in this industry specifically hotels and motels among others.
And this simply means that; with STR reports, hotel managers can now compare and contrast how their entity is positioned to perform in relation to the other entities, at the same time note any developments in their respective markets so as to make informed choices on the various strategies available to them.
This paper examines different parts of an STR Report, which comprise a comprehensive whole in their totality.
Hotel Property vs. Selected Properties
Hotel Property vs. Selected Properties report is designed to allow users to compare a particular hotel under evaluation with a number of other similar hotels (a competitive set).
This comparison includes several key performance indicators (KPIs):This comparison includes several key performance indicators (KPIs):
Occupancy (OCC): The degree of density of occupied rooms with all the available rooms for tourists.
Average Daily Rate (ADR): This can be through measuring the average revenue earned per occupied room.
Revenue per Available Room (RevPAR): To calculate total room revenue, sum up all the revenues generated from the rooms and divide this by the total number of rooms available in the firm.
Example:
In this case, the cooperative data shows that your hotel is ahead of competitors in all aspects, which can be considered successful positioning.
this section include
Understanding STR Report / Annual Totals
At Above Report there has been conducted an analysis of annual totals from the available STR report.
This report, STR, reveals annual information of two group of hotels with several significant performance figures. Here’s a detailed breakdown and explanation of the data:
Here’s a detailed breakdown and explanation of the data:
Key Metrics Explained
Occupancy (%):
The measure of the level of room turnover; the ratio between the number of rented rooms to the number of available ones.
ADR ($):
Average Daily Rate – the measure of the hotel’s income, which indicates the average number of income per every room rented and occupied for one day.
RevPAR ($):
Average Daily Rate– the total room revenue amount divided by the number of occupied rooms.
Room Supply:
This total number of rooms that are put up for sale, for instance in the stock of a property developing firm The total number of rooms which can be bought or in stock, for instance in a property developing company.
Room Demand:
The total number of rooms sold so far including basic rooms, deluxe rooms, super deluxe and suite rooms.
Room Revenues:
It is the total room revenues emanating from the sales of rooms through the implementation of pricing strategy.
Indexes:
These benchmark Group 1 against Group 2, setting the degree 100 as a point of measure.
Occ Index:
Occupancy Index
ADR Index:
Index Of Average Daily Rate
RevPAR Index:
The Revenue per Available Room index was another noticeable indicator that was also affected by the issues stated above.
Share Percentages:
These show the proportional distribution of the total market amongst the identified groups.
Sup % Share:
Supply percentage share Details of percentage share of total supply with respect to each of the food categories and sub-food categories are provided in Table 5.
Dem % Share:
The percentage share of demand is determined by the percentage share of total dollars that a category must receive in the consumption of the Food and Beverage items.
Rev % Share:
Percentage of revenue shared
Understanding STR Report / Breakdown by Year
1990-1994: Early 90s Analysis
1990:
Group 1 shows higher occupancy (75.4%) compared to Group 2 (68.1%).
ADR for Group 1 ($123.22) is also higher than Group 2 ($115.77).
RevPAR follows the same trend, with Group 1 at $92.96 and Group 2 at $78.86.
Group 1 leads in performance indexes (Occupancy: 110.8, ADR: 106.4, RevPAR: 117.9).
1991:
A slight decline in occupancy for both groups.
ADR and RevPAR also show a decrease.
The performance indexes indicate a relative drop but still strong for Group 1 (Occupancy: 112.4, ADR: 105.0, RevPAR: 118.0).
1992:
Further decline in occupancy and ADR.
Group 1 maintains a significant lead in performance indexes.
1993:
Occupancy and ADR start to recover slightly.
Performance indexes reflect an improved competitive position for Group 1.
1994:
Both groups see occupancy and ADR rise.
Group 1’s performance remains strong, although the indexes indicate a slight reduction compared to previous years.
1995-1999: Mid to Late 90s
1995-1997:
Continuous improvement in occupancy and ADR for both groups.
Performance indexes remain relatively stable, with Group 1 consistently outperforming Group 2.
1998-1999:
Continued growth in ADR and RevPAR.
Group 1 shows robust performance in occupancy and revenue indexes.
2000-2002:
Turn of the Millennium
2000:
Peak performance year with the highest occupancy (81.4%) and ADR ($185.17) for Group 1.
Group 1’s RevPAR reaches $150.78.
Indexes are strong, reflecting excellent market performance.
2001:
A decline in performance likely influenced by external factors (e.g., economic downturn).
Both groups see decreases in occupancy, ADR, and RevPAR.
Performance indexes show a drop but Group 1 maintains its lead.
2002:
Continued decline in occupancy and ADR.
Group 1’s indexes indicate they still perform better relative to Group 2 but with smaller margins.
Market Share Analysis
Supply Share (Sup % Share):
Group 1 consistently holds around 16-18% of the market supply.
Demand Share (Dem % Share):
Group 1’s demand share hovers around similar percentages, slightly varying year by year.
Revenue Share (Rev % Share):
Group 1 maintains a strong revenue share, indicating effective pricing and sales strategies.
Understanding STR Report / Percent Change for Annual Totals
The Percent Change for Annual Totals table provides a comprehensive view of the year-over-year changes in various key performance indicators (KPIs) for two different groups.
These KPIs include occupancy rate, average daily rate (ADR), revenue per available room (RevPAR), room supply, room demand, room revenues, and various indices and shares.
Understanding these metrics and their fluctuations helps hotel managers and analysts make informed decisions and develop strategies for improvement.
Key Metrics Explained
Occupancy (%):
This metric shows the percentage change in the occupancy rate compared to the previous year. Occupancy rate indicates the percentage of available rooms that were sold during a specific period.
ADR (%):
Average Daily Rate (ADR) measures the average revenue earned per occupied room. The percentage change indicates how much the ADR has increased or decreased compared to the previous year.
RevPAR (%):
Revenue per Available Room (RevPAR) combines both occupancy and ADR to provide a comprehensive measure of the hotel’s ability to fill its rooms at an average rate. The percentage change shows the year-over-year performance.
Room Supply (%):
This indicates the percentage change in the total number of rooms available for sale compared to the previous year.
Room Demand (%):
This metric measures the percentage change in the total number of rooms sold compared to the previous year.
Room Revenues (%):
This represents the percentage change in total revenue generated from room sales compared to the previous year.
Indices (Occupancy Index, ADR Index, RevPAR Index):
These indices compare the hotel’s performance to a competitive set or market average. A value above 100 indicates better performance than the competitive set, while a value below 100 indicates worse performance.
Market Share Metrics (Supply %, Demand %, Revenue %):
These percentages show the hotel’s share of the total market supply, demand, and revenue.
Detailed Year-over-Year Analysis
1991:
Group 1 experienced a slight decline in occupancy (-1.1%), ADR (-3.4%), and RevPAR (-4.4%). Group 2 saw even larger declines across these metrics. This suggests a challenging year for both groups, with decreased demand impacting revenue.
1992:
Significant drops in occupancy (-5.4% for Group 1 and -1.8% for Group 2) and RevPAR, despite no change in room supply for Group 1 and a notable increase in supply for Group 2 (16.2%). Group 1’s demand fell (-5.4%) while Group 2 saw an increase (14.1%), indicating market instability and perhaps differing market conditions or strategies.
1993:
Both groups saw substantial improvements in occupancy (8.5% and 4.3%) and RevPAR, indicating a recovery year. Room demand increased significantly, contributing to higher revenues.
1994:
Minimal changes in Group 1 occupancy (-0.1%), but a 4.6% increase for Group 2. Both groups improved in ADR and RevPAR, showing continued recovery and growth in revenue.
1995:
Positive trends for both groups with increases in occupancy, ADR, and RevPAR. Group 1 showed a 2.0% increase in occupancy and Group 2 a 1.4% increase, contributing to strong revenue growth.
1996:
Both groups experienced significant growth in ADR (12.2% and 10.6%) and RevPAR (14.2% and 16.1%). This year marked a peak in performance improvements, indicating strong market demand and effective revenue management strategies.
1997:
Continued positive trends with modest increases in occupancy and ADR. RevPAR continued to grow, driven by higher room revenues and stable demand.
1998:
Slight declines in occupancy for both groups but continued growth in ADR and RevPAR, suggesting that price increases compensated for the slight drop in occupancy.
1999:
Stable performance with minor changes in occupancy and consistent growth in ADR and RevPAR. Room revenues increased, indicating effective pricing strategies despite minimal changes in demand.
2000:
Significant growth in occupancy for Group 1 (3.2%) and a slight decrease for Group 2 (-1.6%). Both groups saw substantial increases in ADR and RevPAR, reflecting strong market conditions and successful revenue strategies.
2001:
A challenging year with sharp declines in occupancy (-9.0% and -10.3%) and RevPAR (-13.4% and -14.5%) due to external factors affecting the market. Room revenues also dropped significantly, indicating a tough economic environment.
2002:
Continued declines in occupancy, ADR, and RevPAR, though less severe than in 2001. The market was still recovering, with slight improvements in indices but overall decreased performance compared to previous years.
Conclusion
This year-over-year analysis provides insights into the performance trends of two groups of hotels over a decade. It highlights the impact of market conditions, economic factors, and strategic decisions on key performance metrics. Understanding these trends helps hoteliers and analysts develop more effective strategies to improve occupancy, ADR, and RevPAR, ultimately enhancing overall profitability and market positioning.
Year to Date Totals
Understanding STR Report / Year-to-Date Totals Analysis
The “Year-to-Date Totals” table presents an annual summary of key performance indicators (KPIs) for two groups of hotels over the period from 1990 to 2003.
The KPIs include Occupancy (%), Average Daily Rate (ADR) in dollars, Revenue per Available Room (RevPAR) in dollars, Room Supply, Room Demand, Room Revenues, and various indices and shares. This comprehensive dataset helps in understanding trends, market dynamics, and the performance of these groups over the years.
Detailed Year-to-Year Analysis
1990:
Group 1 had a higher occupancy rate (76.6%) compared to Group 2 (69.4%). ADR and RevPAR were also higher for Group 1. The Room Supply for Group 1 was significantly smaller than Group 2, but Room Revenues were considerably high, indicating better overall performance.
1991:
Both groups saw a decline in occupancy rates and RevPAR. Despite the constant room supply, the Room Demand decreased for both groups, impacting the Room Revenues negatively. Group 1’s indices were higher than Group 2, showing relatively better performance.
1992:
Continued decline in occupancy rates and RevPAR for both groups. The Room Supply increased for Group 2, leading to a drop in demand and revenues. Group 1 managed better ADR, indicating stronger pricing power.
1993:
Improvement in occupancy rates and RevPAR for both groups. Despite the increase in Room Supply, Room Demand and Revenues saw a significant increase, particularly for Group 2. The indices for Group 1 indicated strong performance relative to the market.
1994:
Further improvement in performance metrics with increased occupancy, ADR, and RevPAR. Both groups saw a stable Room Supply and a healthy increase in Room Demand and Revenues. Indices remained strong for Group 1.
1995:
Continuous positive trend with higher occupancy, ADR, and RevPAR. Group 1 showed significant growth in Room Revenues, reflecting effective revenue management and market strategies.
1996:
Both groups experienced substantial growth in ADR and RevPAR. Group 1’s occupancy rate reached 81.1%, and Group 2’s 77.2%, indicating high room utilization. Room Demand and Revenues saw significant increases.
1997:
Continued strong performance with higher ADR and RevPAR. Group 1 and Group 2 maintained high occupancy rates, with substantial growth in Room Revenues, indicating effective market positioning and pricing strategies.
1998:
Slight decline in occupancy for Group 1 but ADR and RevPAR continued to increase. Group 2 saw stable occupancy with significant growth in ADR and RevPAR, leading to higher Room Revenues.
1999:
Both groups maintained high occupancy rates, with continuous growth in ADR and RevPAR. Room Demand and Revenues increased, reflecting sustained market strength.
2000:
Exceptional year with peak occupancy for Group 1 (84.1%) and high ADR and RevPAR for both groups. Room Revenues reached new heights, indicating excellent market conditions and effective strategies.
2001:
Decline in performance metrics due to external factors affecting the market. Both groups saw drops in occupancy and RevPAR. Room Revenues fell significantly, reflecting a challenging year for the industry.
2002:
Continued decline in occupancy and RevPAR, though ADR remained relatively stable. Room Demand decreased for both groups, impacting overall Room Revenues negatively.
2003:
Slight recovery with improved occupancy for Group 1 and Group 2. ADR and RevPAR showed stable performance. Room Revenues saw a modest increase, indicating a slow recovery phase.
Understanding STR Report / Conclusion
This year-to-date analysis reveals the performance trends of two groups of hotels over a decade and more. It highlights the impact of market conditions, economic factors, and strategic decisions on key performance metrics such as occupancy, ADR, and RevPAR. Understanding these trends helps hoteliers and analysts develop effective strategies to enhance occupancy rates, optimize pricing, and ultimately improve overall profitability and market positioning.
Understanding STR Report
Percent Change Analysis for Year-to-Date Totals
Percent Change Analysis for Year-to-Date Totals
The “Percent Change for Year to Date Totals” table provides year-over-year percentage changes for various key performance indicators (KPIs) related to hotel groups over the period from 1991 to 2003.
These KPIs include Occupancy (%), Average Daily Rate (ADR), Revenue per Available Room (RevPAR), Room Supply, Room Demand, Room Revenues, and various indices and market share metrics. This analysis is essential for understanding the trends and fluctuations in the performance of these hotel groups.
Detailed Year-to-Year Analysis
1991:
Both groups saw declines in occupancy, ADR, and RevPAR. Group 1 experienced a slight decrease in occupancy (-0.6%), while Group 2 saw a more significant drop (-3.2%). ADR and RevPAR also declined for both groups. The supply remained constant, but the decrease in demand and revenues indicated a challenging year.
1992:
Group 1 had a more significant decrease in occupancy (-4.9%) compared to Group 2 (-0.6%). Both groups experienced declines in ADR and RevPAR, with Group 1 seeing a more substantial impact. Room Supply increased significantly for Group 2 (15.9%), leading to a drop in demand and revenues for both groups.
1993:
Both groups experienced improvements in occupancy, ADR, and RevPAR. Group 1’s occupancy increased by 7.9%, and Group 2’s by 4.1%. ADR and RevPAR also saw positive changes. The increases in demand and revenues indicated a recovery year.
1994:
Continued improvements with slight increases in occupancy and more significant gains in ADR and RevPAR. Both groups maintained stable room supply, with increasing demand and revenues, reflecting a steady market.
1995:
Both groups experienced positive changes in occupancy, ADR, and RevPAR. Group 1’s ADR increased by 5.5%, and Group 2’s by 5.0%. The stability in room supply and the continued increase in demand and revenues showed consistent growth.
1996:
Significant improvements in ADR and RevPAR for both groups. Group 1’s occupancy increased by 2.2%, and Group 2’s by 4.8%. The substantial increase in demand and revenues indicated robust market performance.
1997:
Both groups saw increases in occupancy, ADR, and RevPAR. Group 1 had an 11.5% increase in ADR, while Group 2 saw an 8.1% rise. The consistent growth in demand and revenues reflected strong market conditions.
1998:
Slight decline in occupancy for Group 1 (-1.6%) but an increase in ADR and RevPAR. Group 2 experienced a minor increase in occupancy and significant gains in ADR and RevPAR. The market remained strong despite the slight fluctuations.
1999:
Both groups maintained stable performance with minor fluctuations. Group 1 saw a small increase in occupancy (0.2%), while Group 2 experienced a slight decline (-0.5%). ADR and RevPAR continued to grow, indicating a stable market.
2000:
Exceptional year with significant increases in all metrics. Group 1’s occupancy grew by 4.1%, and Group 2’s remained stable. ADR and RevPAR saw substantial gains, leading to high room revenues.
2001:
Significant declines due to external factors affecting the market. Both groups saw drops in occupancy, ADR, and RevPAR. Group 1 experienced a -9.5% drop in occupancy, while Group 2 saw an -11.8% decrease. Revenues declined sharply.
2002:
Continued decline in performance metrics, but at a slower rate. Both groups saw decreases in occupancy, ADR, and RevPAR. Group 1’s occupancy dropped by -3.8%, while Group 2’s fell by -1.6%. The market remained challenging.
2003:
Slight recovery with improvements in occupancy for both groups. Group 1’s occupancy increased by 1.4%, while Group 2 saw an 8.4% rise. ADR and RevPAR showed mixed results, with a notable increase in revenues for Group 2.
Understanding STR Report / Conclusion
This year-over-year percent change analysis highlights the fluctuations and trends in key performance indicators for two groups of hotels from 1991 to 2003. It provides insights into how these groups responded to market conditions, economic factors, and strategic decisions. Understanding these trends is crucial for hoteliers and analysts to develop effective strategies to enhance performance and navigate market challenges.
Data by Month
Let’s break down some of the key terms and metrics:
Occupancy (%): This represents the percentage of rooms that are occupied during a specific period.
ADR ($): Average Daily Rate refers to the average rate charged for rooms during a given period.
RevPAR ($): Revenue Per Available Room is a performance metric used in the hotel industry, calculated by multiplying the ADR by the occupancy rate.
Room Supply (#) and Room Demand (#): These represent the total number of rooms available and the total number of rooms sold during a specific period, respectively.
Room Revenues ($): Total revenue generated from room sales.
Occ Index, ADR Index, RevPAR Index: These indices compare the performance of two different groups (Group 1 and Group 2) in terms of occupancy, ADR, and RevPAR.
Sup % Share, Dem % Share, Rev % Share: These percentages indicate the share of room supply, room demand, and room revenue between Group 1 and Group 2.
Understanding STR Report
Monthly Percent Change from Previous Year
Twelve Month Moving Average
Analysis by Day of Week
Resource SMITH TRAVEL RESEARCH
STR Alternative Sites