Hotel Revenue Management – Reading a STR Report

14th Jul 2015

This video posted by Hotel Revenue Management

STR stands for Smith Travel Research, a hospitality analytics firm founded in 1985. STR has a unique model where hotels pay a monthly fee to access competitor data such as occupancy rates, RevPAR, and ADR. What makes STR’s model special is that these hotel customers also share their own performance metrics with STR, which are then aggregated and sold to other competitors and investors.

Understanding the STR Report

The STR report is a benchmarking tool that compares your hotel’s performance against a group of similar hotels. It provides valuable insights into how your property is doing in comparison to others in the market. Here are some key points about the STR report:

  1. Frequency and Format: The report is typically released every Tuesday and can be accessed digitally. However, you also have the option to receive reports on a monthly or yearly basis.
  2. Data Submission: In order to receive your STR report, you need to submit performance data (such as daily occupancy and ADR) to Smith Travel Research. They will then compile all the data they receive into comprehensive reports.
  3. Comparison Group: To accurately assess your hotel’s performance, STR uses anonymized data from a selected group of competitors known as the “compset.” This allows you to see how you stack up against similar properties in your market.

Key Metrics in the STR Report

The STR report utilizes various metrics to present performance data. Here are some of the main terms you’ll come across:

  • Occupancy: This represents the percentage of rooms that were occupied during a specific period. It is calculated by dividing the number of rooms occupied by the total number of rooms available.
  • ADR (Average Daily Rate): ADR reflects the average price at which rooms are sold on a daily basis. It is obtained by dividing the total revenue generated from room sales by the number of rooms sold.
  • RevPAR (Revenue per Available Room): RevPAR indicates the average revenue generated by each available room. It can be calculated by dividing the total revenue earned from all rooms by the total number of rooms available.

By analyzing these metrics in the STR report, you can gain valuable insights into your hotel’s performance and make informed decisions to drive growth

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