Hotel Revenue Management – Reading a STR Report

This video posted by Hotel Revenue Management

STR stands for Smith Travel Research, a hospitality analytics firm founded in 1985 ز STR has a genius model where hotels pay a monthly fee to see competitor data like occupancy rates, RevPAR and ADR.  The genius part of STR’s model is that these hotel customers also contribute their own performance metrics which STR then packages and resells to competitors and investors.

the STR report is a benchmarking tool that compares your hotel’s performance against a set of similar hotels. The report is usually released every Tuesday and is delivered in a digital format, though you can also receive reports on a monthly or yearly basis. In order to receive your STR report, hoteliers must submit performance data (like daily occupancy and ADR) to Smith Travel Research, who then compiles all of the data they receive into the nicely presented STR reports.

You can find your own hotel’s data in your property management system, so the real advantage to looking at a STR report is understanding how your hotel is performing against other properties. To do this, STR uses anonymized data from your competitive set, which is a group of hotels that you choose for comparison purposes. We’ll talk more about choosing a compset below.

The STR report uses a variety of metrics to show performance data. Here are a few of the main terms that you’ll see throughout the report:

• Occupancy = Rooms Occupied / Total Number of Rooms. Occupancy is expressed as a percentage, like 78%.

• ADR (Average Daily Rate) = Total Revenue / Number of Rooms Sold. ADR is the average room rate sold for a given time period.

• RevPAR (Revenue per Available Room) = Total Revenue / Total Number of Rooms. RevPAR can also be calculated as ADR x Occupancy.