Key Hotel Industry Metrics and Terms

The value of any given month is computed by averaging the value of that month and the 11 preceding months.

The value of any given month is computed by averaging the value of that month and the 2 preceding months.

Additional revenue includes F&B Revenue, Other Revenue and Total Revenue, as defined below:

• F&B Revenue: Revenue derived from the sale of food, beverages and other sources within the F&B department.
• Other Revenue: All revenue generated outside of rooms and F&B departments.
• Total Revenue: All revenue generated from hotel operations listed above (rooms, F&B and other revenue)

See Data Reporting Guidelines for specific application.

A sample reporting methodology in which performance data is scaled so that reported supply matches inventory supply. (In addition to adjusting sample supply to match inventory supply, demand and revenue also are adjusted to not affect the KPI values).

See Full Availability, Sample Availability and STAR Availability.  

A publicly recognized brand or chain with consistent brand standards across a group of properties. Generally, STR creates or designates an affiliation after the company portfolio has a minimum of eight properties.

The year and month the property becomes associated with its current brand or chain.

Property with rooms sold as a complete package only, bundling overnight accommodations and value-added amenities and services (i.e., food, beverage, activities and gratuities, etc.)

In all-inclusive hotels, guests pay one upfront fee that covers their accommodations, food, drinks, and various activities and entertainment. These hotels are designed to offer guests a worry-free vacation experience with all needs included as a package for one price. All-inclusive hotels are popular among travelers who want to enjoy a variety of activities and amenities without worrying about the cost. Depending on the hotel, guests may have access to features like pools, beaches, water sports, and more. All-inclusive hotels are popular in high-tourist areas like the Caribbean.

A property comprised exclusively of larger‑format guestrooms that offer expanded space, additional furnishings, and a separate living area or multiple rooms.

Features and services offered at hotels (i.e., restaurant, golf, pool, spa or casino).

Used when aggregating data for custom hotel searches within CoStar Properties Analytics. Analytics Rooms includes existing hotels that are determined by CoStar Research to be “In Supply,” meaning they meet the definition of a standard hotel room and are comparable for hotel performance. To ensure the confidentiality of data providers, the Analytics Rooms count also includes a Composite Property, which is weighted to 5% of the Analytics Rooms count.

See Composite Property. 

A person or entity that is responsible for hotel project design, planning and, in many cases, construction supervision.

The company or contact that handles all the financial transactions for a hotel, ensuring the loans, appraisals, and management requirements are in order and operating correctly. Asset Managers are hired on behalf of a hotel owner and usually handle portfolios of properties.

A measure of the average rate paid for rooms sold, calculated by dividing room revenue by rooms sold.

ADR = Room Revenue/Rooms Sold

Click here to learn more about ADR. 

Measures a hotel’s performance in ADR relative to an aggregated grouping of hotels (i.e., Competitive Set, market or submarket). If all things are equal, a property's ARI is expected to be 100, compared to the aggregate group of hotels. Historically, this is described as "fair share."

An ARI greater than 100 represents more than the expected share of the aggregated group’s ADR. Conversely, an ARI below 100 reflects less than the expected share of the aggregated group’s ADR. 

To calculate ARI: (Subject hotel ADR/Aggregated group of hotels’ ADR) x 100 = ARI

Example: If a hotel’s ADR is $50, and the ADR of its Competitive Set is $50, the subject hotel’s ARI totals 100. If the subject hotel’s ADR totals $60, its ARI would be 120, indicating that the hotel captured more than its expected share. If the subject hotel’s ADR totals $40, its ARI would be 80, indicating that the hotel has captured less than its expected share.

The range of performance among a Competitive Set indicated by the daily high and low performance of individual competitors.

Independently owned and operated properties that typically include breakfast in the room rate, 20 rooms or fewer and a resident/owner innkeeper.

Benchmarking is the process of comparing and analyzing your property or portfolio's performance against the competition. The benchmarking process provides you with a better understanding of the market and context in which you operate.

Property that appeals to guests because of its atypical amenity and room configurations. Boutiques are normally independent (with fewer than 200 rooms), have a high average rate and offer high levels of service. Boutique hotels often provide authentic cultural, historic experiences and interesting guest services.

See Lifestyle Brand, Soft Brand.

The total number of hotels and rooms in a particular segment (i.e., country, market or submarket).

Chain Scale segments are grouped primarily according to actual average room rates. An independent hotel, regardless of average room rate, is included as a separate Chain Scale category. The Chain Scale segments are: Luxury, Upper Upscale, Upscale, Upper Midscale, Midscale, Economy and Independent.

Indicator of whether an individual hotel has added or removed rooms from its inventory.

A categorization of chain-affiliated and independent hotels. The class for a chain-affiliated hotel is the same as its Chain Scale. An independent hotel is assigned a class based on its ADR, relative to that of the chain hotels within geographic proximity. The class segments are: Luxury, Upper Upscale, Upscale, Upper Midscale, Midscale and Economy.

Property that is closed permanently or due to renovation and may/may not reopen, depending on the closure reason.

Two combined classes that form a single segment. The collapsed classes are:

• Luxury and Upper Upscale
• Upscale and Upper Midscale
• Midscale and Economy

Combined chain scales that form a single segment. The collapsed scale segments are:

• Upscale Chains – includes Luxury, Upper Upscale and Upscale chains
• Midscale Chains – includes Upper Midscale and Midscale chains
• Economy Chains – includes Economy chains
• Independent – includes Independent properties

Company types include:

• Architect: Person or entity responsible for hotel project design, planning and, in many cases, construction supervision.
• Asset Management Company: Company that manages investments on behalf of an owner.
• Developer: Company that prepares a site and builds a lodging facility for commercial use.
• Franchise Company: Group of independently owned operations that have been issued a contract to use a specific name and logo, purchased for an annual fee plus “royalties” – usually based on a percentage of sales. Members share benefits, like brand identity, corporate image advertising, centralized reservation systems, corporate training programs and volume purchasing.
• Membership Company: Company in which independently owned and operated lodging properties operate under a single membership affiliation while sharing a global reservations system, marketing, advertising, purchasing, training and quality standards with fewer constraints than a traditional franchise company. Each company member has a voice in company operations.
• Operator / Management Company: Company that manages a property’s operations for its owners, typically in return for fees and/or revenue share. 
• Owner: Person or company that primarily owns, rather than franchises or manages, lodging properties. Properties can have more than one owner; multiple owners are listed by share of ownership, with the entity owning the largest share listed first.
• Parent Company: Company that owns one or more brands. Examples include Accor, Choice Hotels International, InterContinental Hotels Group, Marriott International and Wyndham Worldwide Corporation.
• Real Estate Investment Trust (REIT): Corporation or trust that uses the pooled capital of many investors to purchase and manage income property and/or mortgage loans. Typically, they distribute most earnings directly to shareholders as dividends without taxation at the corporate level.

A Competitive Set (Comp Set) is the group of hotels that a property competes against for business. These hotels are typically located in the same geographic area and offer similar services and amenities. By analyzing a Competitive Set, a hotel can better understand its position in the market and adjust its pricing and marketing strategies accordingly. Competitive Set analysis is a vital tool for revenue managers and can help a hotel maximize its revenue and market share.

Click here to read more about Comp Sets. 

In the hospitality world, complimentary services refer to any amenity that is provided to a guest free of charge. Common complimentary services include Wi-Fi, breakfast, parking, fitness centers, toiletries, and more. Hotels use these services to attract guests and retain loyalty by providing added value and convenience.

An aggregate of multiple, anonymous properties that acts as one individual property. The hotels that make up this Composite Property are anonymized and chosen automatically by STR’s proprietary methodology that weighs objective criteria such as location, performance, class, property size and mix of business.

Within STR Benchmark, Composite Properties can be added to Comp Sets at the discretion of the Comp Set’s owner. Within CoStar Properties Analytics, a Composite Property is added automatically to every search to ensure the confidentiality of data providers.  

Individually and wholly owned condominium unit. Inventory is included in a rental pool operated and serviced by a management company.

A consistent block of rooms committed at a stipulated contract rate for an extended period over 30 days with payment guaranteed regardless of use, such as for airline crews and permanent guests. Transient, Group and Contract comprise the three demand types within Segmentation reporting.

Property with a minimum of 300 rooms and large meeting facilities (minimum of 20,000 square feet) and not part of the Conference Center Group (CCG).

Rooms added to a chain's inventory from another brand or independent hotel.

Rooms removed from a chain's inventory and added to another brand or independent hotel.

The nation where a property is located.

In the U.S., a county is a geographic subdivision of a state (or federal territory).

Comparison of daily performance by actual calendar date (1st of January this year vs. 1st of January last year).

Comparison of daily performance by day of week (Monday this year vs. Monday last year).

The number of rooms sold in a specified period (excludes complimentary rooms). Refer to Data Reporting Guidelines for more specific application.

See Room Nights Sold and Rooms Sold (Room Demand)

Property that appeals to leisure travelers, typically located in resort markets, and considered a destination in and of itself with extensive amenity offerings. These properties are typically larger and full-service.

 A company that prepares a site and builds a lodging facility for commercial use.

Determined by subtracting the Total Non-Operating Income and EBITDA. The EBITDA percentage is calculated by dividing the dollar amount for EBITDA by Total Operating Revenue.

The value of one currency for the purpose of one conversion to another. For STR reporting purposes, this is the factor used to convert U.S. dollar revenue to local currency and vice versa. STR obtains exchange rate data from Morningstar.

CoStar product and the STR Benchmark feature use four different methodologies when calculating exchange rates, which users can configure based on their reporting needs:  

1. Constant Current: Uses the most recent daily exchange rate. The rate remains constant from one period to the next.
2. Constant Average: Uses the 20-year average exchange rate. The rate remains constant from one period to the next.
3. Historical: Uses the historical exchange rate for each period. The rate changes from one period to the next.
4. Fixed Constant: Uses the exchange rate as of 31 January of the current year. The rate remains fixed for the remainder of the calendar year. 

Buildings that have been completed and are ready for occupancy. Excluded from this status are buildings that are functionally obsolete (i.e. Abandoned), demolished or that have been converted to a new Property Type (i.e. Converted).

Properties typically focused on attracting guests for extended periods. These properties quote weekly rates. The typical length of stay average for guests is 4 to 7 nights.

An even distribution of supply, demand and revenue among all properties in a selected group. An index of 100 indicates a property has achieved its fair share.  

Example: If a hotel’s ADR is $50, and the ADR of its Competitive Set is $50, the subject hotel’s ARI totals 100. If the subject hotel’s ADR totals $60, its ARI would be 120, indicating that the hotel captured more than its expected share. If the subject hotel’s ADR totals $40, its ARI would be 80, indicating that the hotel has captured less than its expected share.

An exchange rate that eliminates the effects of exchange rate fluctuations. Uses the exchange rate as of 31 January of the current year. The rate remains fixed for the remainder of the calendar year.

The term “flow through” is used when revenues increase relative to budget or the previous year and can be defined as the percentage of incremental profit that “flows” to the bottom-line from each incremental dollar of topline revenue.  

Flow Through % = (Change in GOP ÷ Change in Total Revenue) * 100

The term “flex” is used when revenues decrease relative to budget or the previous year and can be defined as the amount of profit that is “flexed” or saved as revenue declines.

Flex % = (1 − (Change in GOP ÷ Change in Total Revenue)) × 100 

Click here to learn more about Flow Through and Flex.

Revenue derived from the sale of food, beverage and non-consumable goods and services sold by a hotel’s food and beverage department.  Refer to Data Reporting Guidelines for more specific application.

A group of independently-owned operations that have been issued a contract to use a specific name and logo, purchased for an annual fee plus “royalties” – usually based on a percentage of sales. Members share benefits like brand-name identity, corporate image advertising, centralized reservation systems, corporate training programs and volume purchasing.

A sample reporting methodology in which performance data is based on the full physical capacity for the subject property, Competitive Set and industry segment.

See Adjusted Availability, Sample Availability and STAR Availability. 

Typically Upscale, Upper Upscale and Luxury properties with a wide variety of onsite amenities, such as restaurants, meeting spaces, exercise rooms or spas. Defined in STR Benchmark as hotels with more than 5% of Total Revenue attributed to Food and Beverage Revenues.  

Full-Time Equivalent Employees (FTE)

The number of full-time employees calculated to include part-time employees.  

A full-time equivalent employee works 2,080 hours in one year (in the U.S. = 40 hr. workweek), so the number of employee hours worked divided by 2,080 hours is the full-time equivalent employees

Example: 21,840 employee hours / 2,080 hours per FTE = 10.5 FTEs

FF&E stands for Furniture, Fixtures, and Equipment. This acronym refers to the movable items in a hotel room that are not part of the building's structure. This includes items like beds, chairs, curtains, and lamps. FF&E is an important aspect of hotel design and can greatly impact the guest experience.

Property with a major focus on casino operations.

A Global Distribution System (GDS) is a computerized network that provides travel-related information and booking services to travel agents, travel management companies, and other travel professionals. A GDS consolidates information from various travel suppliers and enables users to compare and book flights, hotels, rental cars, and other travel products. The three main global distribution systems are Amadeus, Sabre, and Travelport. Global distribution systems play an important role in the travel industry, facilitating the booking process and connecting travelers with a wide range of travel options.

Property that includes a golf course amenity as part of its operations. A property does not qualify if it only has privileges on a nearby course.

GOPPAR measures management’s ability to produce profits by generating sales and controlling the operating expenses over which they have the most direct control.  

Calculated by dividing gross operating profit by the rooms available in the hotel:  

GOPPAR = Gross Operating Profit / Number of Rooms Available  

Click here to learn more about GOPPAR.  

Typically defined as 10 or more rooms per night, sold pursuant to a signed agreement. Transient, Group and Contract comprise the three demand types within Segmentation reporting.

A property is voluntarily closed for a period (less than one month), typically due to a holiday.

A standard hotel or motel operation.

Hotel classifications are driven primarily by building structure and, secondarily, by service level. Hotel types include:

• All-Inclusive: Property with rooms sold only as a complete package, bundling overnight accommodation and value-added amenities and services (i.e., food, beverage, activities and gratuities, etc.)
• All-Suite: Property with guestroom inventory that exclusively consists of rooms offering more space and furniture than a typical hotel room, including a designated living area or multiple rooms.
• Bed & Breakfast (B&B) Inn: Independently owned and operated properties that typically include breakfast in the room rates, 20 rooms or fewer and a resident/owner innkeeper.
• Boutique: Property that appeals to guests because of its atypical amenity and room configurations. Boutiques are normally independent (with fewer than 200 rooms), have a high average rate and offer high levels of service. Boutique hotels often provide authentic cultural, historic experiences and interesting guest services.
• Condo: Individually and wholly owned condominium units. Inventory is included in a rental pool operated and serviced by a management company.
• Convention Center: Property with a minimum of 300 rooms and large meeting facilities (minimum of 20,000 square feet) and not part of the Conference Center Group (CCG). 
• Destination Resort: Property that appeals to leisure travelers, typically located in resort markets, and considered a destination in and of itself with extensive amenity offerings. These properties are typically larger and full-service.
• Extended Stay: Properties typically focused on attracting guests for extended periods. These properties quote weekly rates. The typical length of stay average for guests is 4 to 7 nights. 
• Full Service: Typically Upscale, Upper Upscale and Luxury properties with a wide variety of onsite amenities, such as restaurants, meeting spaces, exercise rooms or spas. Defined in STR Benchmark as hotels with more than 5% of Total Revenue attributed to Food and Beverage Revenues.
• Gaming / Casino: Property with a major focus on casino operations.
• Golf: Property that includes a golf course amenity as part of its operations. A property does not qualify if it only has privileges on a nearby course.
• Hotel / Motel: Standard hotel or motel operation.
• Limited Service: Property that offers limited facilities and amenities, typically without a full-service restaurant. These hotels are often in the Economy, Midscale or Upper Midscale class. Defined in STR Benchmark as hotels with less than 5% of Total Revenue attributed to Food and Beverage Revenues.
• Lifestyle Brand: Group of hotels operating under the same brand that is adapted to reflect current trends. Select lifestyle brand hotels include AC Hotels by Marriott International, Radisson Red by Carlson and W Hotels by Marriott International. See Boutique, Soft Brand.
• New Build: Property built from the ground up, not a conversion or building that was not previously a hotel.
• Ski: Property with onsite access to ski slopes.
• Soft Brand: Collection of properties that allows owners and operators to affiliate with a major chain while retaining their unique name, design and orientation. Select soft brand hotels include Ascend Hotel Collection by Choice Hotels International and Autograph Collection by Marriott International. See Boutique, Lifestyle Brand.
• Spa: Property with an onsite spa facility and full-time staff offering spa treatments.
• Timeshare: Property that typically is a resort condominium unit, in which multiple parties hold property use rights, and each timeshare owner is allotted a period when the property may be used.
• Waterpark: An indoor or outdoor waterpark resort with a lodging establishment containing an aquatic facility (minimum of 10,000 square feet of waterpark space) and inclusive of amenities (slides, tubes and a variety of water play features).

Measures a hotel’s performance relative to an aggregated grouping of hotels (i.e., Competitive Set, market or submarket).

An index of 100 means a hotel is capturing a fair share compared to the aggregated group of hotels. An index greater than 100 represents more than a fair share of the aggregated group’s performance. Conversely, an index below 100 reflects less than a fair share of the aggregated group’s performance.

Denotes whether the property has interior or exterior corridors.

A count of open and temporarily closed hotel buildings.

The number of nights that a guest stays in a hotel. LOS is an important metric for hotels because it can impact revenue management and staffing decisions. By understanding LOS trends, hotels can adjust their pricing and marketing strategies accordingly to optimize occupancy and revenue.

Limited-service hotels are properties that offer select or focused facilities and amenities, typically without a full-service restaurant. These hotels are often in the Economy, Midscale or Upper Midscale segments. Limited-service hotels are often labeled “budget-friendly” and, because of their focused level of services and amenities, require smaller operational staffs.

Defined in STR Benchmark as hotels with less than 5% of Total Revenue attributed to Food and Beverage Revenues. 

Property classification driven by physical location. Chain management provides STR with location classifications for a significant number of hotels. 

Property classification driven by physical location regardless of amenities or services offered. 
Location Segments and Types include:

• Urban: Densely populated location in a large metropolitan area. (e.g., Atlanta, Boston, San Francisco, London, Tokyo).
• Suburban: Suburbs of metropolitan markets. Examples are Sag Harbor and White Plains, NY (near New York City) and Croydon and Wimbledon (near London). Distance from city center varies based on population and market orientation.
• Airport: Hotel near an airport that primarily serves demand from airport traffic. Distance may vary.
• Interstate/Motorway: Property near major highway, motorway or other major roads with the primary source of business via passerby travel. Hotels located in suburban areas have suburban classification.
• Resort: Property located in a resort area or market where a significant source of business is derived from leisure/destination travel. Examples: Orlando, Lake Tahoe, Daytona Beach, Hilton Head Island, Virginia Beach.
• Small Metro/Town: Area with either a smaller population or remote locations with limited services. Size varies by market orientation. Suburban locations do not exist in proximity to these areas. In North America, metropolitan small-town areas are populated with less than 150,000 people.

Lodging is an umbrella term that refers to a temporary place to stay, such as a hotel, motel, or hostel. It can also refer to a vacation rental, short-term rental, bed and breakfast, or any other type of accommodation that provides sleeping quarters for travelers. The term is often used in the hospitality industry to describe the act of providing accommodation to guests.

In the U.S., a market is a geographic area typically made up of a Metropolitan Statistical Area (e.g., Atlanta), a group of Metropolitan Statistical Areas (i.e., South Central Pennsylvania) or a group of postal codes (i.e., Texas North). Outside the U.S., a market is defined as a city, region or country with at least 30 participating hotels. A market can be further divided into submarkets. See Submarket.

A combination of market and class for data reporting purposes. See Market, Class.

Properties located in a specific market and STR collapsed class segment (i.e., Nashville Luxury / Upper Upscale class).

Properties located in a specific market and STR collapsed scale segment (i.e., Nashville Upscale includes Luxury, Upper Upscale and Upscale chain scales).

Measures a hotel’s performance in occupancy (Occ) relative to an aggregated grouping of hotels (i.e., Competitive Set, market, submarket). If all things are equal, a property's Occ Index or MPI is 100 compared to the aggregated group of hotels (historically described as "fair share"). 

An MPI greater than 100 represents more than the expected share of the aggregated group’s occupancy. Conversely, an MPI below 100 reflects less than the expected share of the aggregated group’s occupancy.

To calculate MPI: (Subject hotel Occ / Aggregated group of hotels’ Occ) x 100 = Occ Index/MPI 

Example: If a subject hotel’s Occ is 80%, and the Occ of its competitive set is 80%, the subject hotel’s MPI is 100. If the subject hotel’s Occ is 96%, its MPI is 120, indicating the hotel has captured more than its expected share. If the subject hotel’s Occ is 64%, its index is 80, indicating the hotel has captured less than its expected share.

See Occupancy Index. 

Properties located in a specified market and chain scale segment (i.e., Waikiki Luxury Chains).

The highest performance possible for a period, assuming a property operated at the highest point of the bandwidth during the period. 

Space designed for catering and banquet events, used for meal functions and meeting room sets, and physically located on the property. Public convention center, pre-function space (i.e., lobby), outdoor areas (i.e., lanai or terrace, etc.) and extra restaurant rooms are not included.

This tourism segment represents a significant portion of global business travel as well as hotel demand on the days of the week that typically cater to business travelers. Bookings from the MICE segment are usually made well in advance of an event.

Company in which independently owned and operated lodging properties operate under a single membership affiliation while sharing a global reservations system, marketing, advertising, purchasing, training and quality standards with fewer constraints than a traditional franchise company. Each company member has a voice in company operations.

In the U.S. only, an MSA is a geographic entity defined by the Office of Management and Budget (OMB) for use by federal statistical agencies in the collection, tabulation and publishing of federal statistics. For further details, refer to the U.S. Census Bureau at Census.gov.

The lowest performance possible for a period, assuming a property operated at the lowest point of the bandwidth during the period.

All revenue not included in rooms, F&B or other operated departments—this revenue is not associated with any expense or is reported net of expenses. This typically includes income from rentals or leases, resort fees and cancellation fees but does not include investment income.

Period that starts at the beginning of the current month and ends at the current date.

Net gain or loss of rooms during a period.

Total profit remaining after subtracting all expenses—including taxes, interest, depreciation, and operating costs—from a company's total revenue.

Often referred to as the “bottom line.” 

Property built from the ground up, not a conversion or building that was not previously a hotel.

The number of floors or stories in the property.

Total number of rentable rooms for overnight accommodation.

Percentage of available rooms sold during a specified period. Occupancy is calculated by dividing the number of rooms sold by rooms available.

Occupancy = Rooms Sold / Rooms Available

Click here to learn more about occupancy rate.

Measures a hotel’s performance in occupancy (Occ) relative to an aggregated grouping of hotels (i.e., Competitive Set, market, submarket). If all things are equal, a property's Occ Index or MPI is 100 compared to the aggregated group of hotels (historically described as "fair share"). 

An MPI greater than 100 represents more than the expected share of the aggregated group’s Occupancy performance. Conversely, an MPI below 100 reflects less than the expected share of the aggregated group’s Occupancy performance. 

To calculate MPI: (Subject hotel Occ / Aggregated group of hotels’ Occ) x 100 = Occ Index/MPI

Example: If a subject hotel’s Occ is 80%, and the Occ of its competitive set is 80%, the subject hotel’s MPI is 100. If the subject hotel’s Occ is 96%, its MPI is 120, indicating the hotel has captured more than its expected share. If the subject hotel’s Occ is 64%, its index is 80, indicating the hotel has captured less than its expected share.

See Market Penetration Index (MPI).

Year and month a property opened as a lodging establishment for the first time.

Hotels typically fall under one of three operation types:

1. Chain Managed: Properties are branded and operated by the chain.
2. Franchised: Branded properties operated by a third party that pays franchise fees or royalties to the chain for the use of its brand name, marketing and reservation services, etc.
3. Independent: Properties not affiliated with a chain and are independently operated, including all non-branded hotels and select brands that are membership-based.

Company that manages a property’s operations for owners, typically in return for fees and/or revenue share.

Typically includes revenue outside of rooms and F&B departments.

Person or company that primarily owns, rather than franchises or manages, lodging properties. Properties can have more than one owner; multiple owners are listed by share of ownership, with the entity owning the largest share listed first.

Company that owns one or more brands. Examples include Accor, Choice Hotels International, InterContinental Hotels Group, and Marriott International.

The amount of change—positive, or negative—expressed as a percentage comparing a period versus the same period last year. Calculated as ((This Year — Last Year)/Last Year)*100.

Subject property's percent change ranked in comparison to the percent change of each hotel in the competitive set.

Data that details existing global hotel supply and projected growth with development data gathered from the major chains and management companies, as well as data provided by convention and visitors bureaus (CVB), periodicals, consultant reviews and developers.

The hotel development lifecycle comprises the following phases:

• Existing: Buildings that have been completed and are ready for occupancy. Excluded from this status are buildings that are functionally obsolete (i.e. Abandoned), demolished or that have been converted to a new Property Type (i.e. Converted).
• Under Construction: Vertical construction on the physical building has begun. This does not include construction on any sub-grade structures including, but not limited to, parking garages, underground supports/footers or any other type of sub-grade construction.
• Final Planning: Confirmed, Under Contract projects where construction will begin within the next 12 months.
• Proposed: Confirmed, Under Contract projects where construction will begin in more than 13 months.
• Note: The availability of financing, issuance of building permits, owner commitment and many other factors can alter anticipated completion dates, number of rooms to be constructed or project viability. The number of projects and number of rooms in the construction pipeline are subject to change. Projects in early development stages are less likely to be completed than projects in later stages.

STR defines a property (hotel) based on three exclusionary criteria:

• Typically 10 or more rooms
• Open to the public (excludes properties requiring membership, affiliation or club status)
• Generates nightly revenue

Note: A property with fewer than 10 rooms may participate. Floating hotels (boats) are allowed only if permanently moored and stationary while also allowing guests to depart at any time.

CoStar’s proprietary numbering system. Each hotel in the CoStar database has a unique Property ID.

Subject property's key performance indicators (KPIs) — occupancy, ADR and RevPAR — ranked in comparison to the respective KPI of each Competitive Set property. 

Example: “2 of 6” ADR ranking means the subject hotel’s absolute ADR is the second highest of the 6 competitors.

Corporation or trust that uses the pooled capital of many investors to purchase and manage income property and/or mortgage loans. Typically, they distribute the majority of earnings directly to shareholders as dividends without taxation at the corporate level.

STR groups the U.S. into nine regions:

• New England (Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island) 
• Middle Atlantic (New York, Pennsylvania, New Jersey)
• South Atlantic (Maryland, Delaware, West Virginia, Virginia, North Carolina, South Carolina, Georgia, Florida)
• East North Central (Michigan, Wisconsin, Illinois, Indiana, Ohio)
• East South Central (Kentucky, Tennessee, Alabama, Mississippi)
• West North Central (Minnesota, North Dakota, South Dakota, Iowa, Nebraska, Missouri, Kansas)
• West South Central (Arkansas, Oklahoma, Texas, Louisiana)
• Mountain (Montana, Idaho, Wyoming, Colorado, Utah, Nevada, Arizona, New Mexico)
• Pacific (Alaska, Washington, Oregon, California, Hawaii)

STR defines a restaurant as a full-service venue offering more than breakfast.

Room revenue generated from guestroom rentals or sales. Refer to Data Reporting Guidelines for more specific application.

Day-of-Week Revenue Opportunity measures the revenue gap, if any, for each day of the week between a property and the relative performance of the highest-performing property in a Comp Set.

Total room revenue divided by the total number of available rooms. See Room Revenue, Rooms Available. 

Room Revenue/Rooms Available = RevPAR

Profitability reporting includes the following revenue categories:  

• Rooms: Revenues derived from the rental of sleeping rooms at a hotel, net of any rebates and discounts. Subcategories include: Transient, Group, Contract, Service Charges, Other and Executive Lounge.  
• Food & Beverage: Revenues derived from the sale of food, beverage and associated services. Subcategories include:  Venues, In-Room Dining, Banquet / Conference / Catering, Other, Function Room and Setup Charges, Audiovisual, Surcharges and Service Charges, Miscellaneous.  
• Golf: Revenues derived from the sale of on-site golf rentals. Subcategories include: Green Fees, Cart Rentals, Retail, Membership Fees and Other.  
• Spa: Revenues derived from the sale of on-site spa service. Subcategories include: Treatments, Salon, Retail and Other.  
• Other Departments: Revenues derived from the sale of other services on property. Subcategories include: Transportation / Garage / Parking, Guest Communications, Mini Bar and Other.  
• Miscellaneous Income: Income from rentals of space for business purposes, including concessions in any of the departments mentioned under other operated departments. Includes Resort Fees, Cancellation Fees, and Other.  

Measures a hotel’s performance in RevPAR relative to an aggregated grouping of hotels (i.e., Competitive Set, market or submarket, etc.). If all things are equal, a property's RevPAR Index, or RGI, is 100, compared to the aggregated group of hotels. Historically, this also is described as "fair share."

An RGI greater than 100 represents more than the expected share of the aggregated group’s RevPAR. Conversely, an RGI below 100 reflects less than the expected share of the aggregated group’s RevPAR. 

To calculate RGI: (Subject hotel RevPAR / Aggregated group of hotels’ RevPAR) x 100 = RevPAR Index

Example: If a subject hotel’s RevPAR is $50, and the RevPAR of its competitive set is $50, the subject hotel’s RGI is 100. If the subject hotel’s RevPAR is $60, its index is 120, indicating the hotel has captured more than its expected share. If the subject hotel’s RevPAR is $40, its RGI is 80, indicating the hotel has captured less than its expected share.

Rooms added to inventory through expansion, repurposing or reopening after renovation.

A room block is a group of hotel rooms that have been reserved for a specific purpose, such as a conference, wedding, or other event. Room blocks are typically booked in advance and can be held for a certain period, after which any unreserved rooms are released back to the hotel's inventory. 

Room blocks often come with special rates and amenities, and the hotel may require a deposit or other guarantee to secure the reservation.

The number of rooms sold in a specified period (excluding complimentary rooms).  Refer to Data Reporting Guidelines for more specific application.

See: Rooms Sold (Room Demand) and Demand.

The number of rooms in a hotel or set of hotels multiplied by the number of days in a specified period. Refer to Data Reporting Guidelines for more specific application. See Supply.

Example: 100 rooms in subject hotel x 31 days in the month = Room Supply of 3,100 for the month.

Rooms removed from inventory due to being repurposed, part of a full property renovation or no longer available in the rental pool.

The number of rooms sold in a specified period (excludes complimentary rooms). Refer to Data Reporting Guidelines for more specific application.

See: Demand and Room Nights Sold

The number of properties and rooms that submit performance data to STR.

A sample reporting methodology in which performance data is based on the reported sample of the subject property, Competitive Set and industry segment.

See Adjusted Availability, Full Availability and STAR Availability.  

The period when a property is closed for at least one calendar month around the same time each year.

Example: A ski lodge is closed during summer or a beach resort is closed during winter.

Rooms sold and revenue data broken down by customer type (Transient, Group, Contract). Refer to Data Reporting Guidelines for more specific application.

Room count of the property.

Property with onsite access to ski slopes.

SMERF stands for Social, Military, Educational, Religious, and Fraternal groups. In the hospitality industry, these groups are considered a key market segment for group bookings. Hotels and event venues often offer specialized services and amenities to cater to the unique needs and preferences of SMERF groups, such as meeting spaces, banquet facilities, and discounted rates. SMERF groups are an important source of business for the hospitality industry, particularly for midweek and off-season bookings.

A spa is a facility within a hotel that offers various wellness and beauty treatments to guests. These treatments may include massages, facials, body wraps, and other therapeutic services. The spa is designed to provide a relaxing and rejuvenating experience for guests, with features such as saunas, steam rooms, and hot tubs. Many hotels offer spa packages that include a combination of services to enhance the guest's overall experience. Spas are often found in higher-end hotels and resorts, where they are a popular amenity for those seeking a luxurious and indulgent experience.

A sample reporting methodology that applies Sample Availability methodology to a subject hotel and Full Availability to the Comp Set and industry. (The subject property performance data is based off reported sample, while Comp Set and industry data is based off inventory sample.)    

See Adjusted Availability, Full Availability and Sample Availability.  

STR's proprietary numbering system. Each hotel in the STR database has a unique STR Number. This also is known as an STR Code or Census ID.

Geographic area that is a subset of a market (i.e., Waikiki in the Oahu Island market). 

See Market.

Properties located in a specific submarket and STR class segment (i.e., Waikiki Upper Upscale Class).

Properties located in a specific submarket and STR collapsed class segment (i.e., Waikiki Upscale / Upper Midscale classes).

Properties located in a specified submarket and STR collapsed scale segment (i.e., Waikiki Midscale includes Upper Midscale & Midscale chain scales).

A suite is a type of hotel room that offers more space and amenities than a standard guest room. Suites typically consist of a bedroom and a separate living area, which may include a sofa, armchairs, and a dining table. The bedroom area may feature a king-size bed and high-quality linens, while the living area may include a mini-fridge, microwave, and flat-screen TV. Suites may also offer additional perks such as complimentary breakfast, access to a private lounge, or personalized concierge services.

Number of rooms in a hotel or set of hotels multiplied by the number of days in a specified period. Refer to Data Reporting Guidelines for more specific application. 

Example: 100 rooms in subject hotel x 31 days in the month = Room Supply of 3,100 for the month. See rooms available.

Amount of change — positive or negative — this period vs. the last reporting month. Calculated as ((TM-LM)/LM)*100.

Amount of change — positive or negative — this period vs. the same period last year. Calculated as ((TY-LY)/LY)*100.

Property that typically is a resort condominium unit, in which multiple parties hold property use rights, and each timeshare owner is allotted a period when the property may be used.

Revenue from all hotel operations — including rooms, F&B, other revenue departments (i.e., spa, golf, parking) and miscellaneous revenue (i.e., rentals, leases, resort fees and cancellation fees).

A measure of Total Operating Revenue Per Available Room divided by total available rooms.

Total Revenue/Total Available Rooms= TRevPAR

A measure of Total Operating Revenue Per Occupied Room divided by total rooms sold. 

Total Revenue/Rooms Sold= TrevPOR

Includes rooms sold to individuals or groups occupying less than 10 rooms per night. Transient, Group and Contract comprise the three demand types within Segmentation reporting.

An indoor or outdoor waterpark resort with a lodging establishment containing an aquatic facility (minimum of 10,000 square feet of waterpark space) and inclusive of amenities (slides, tubes and a variety of water play features).

STR groups the world into four regions and 15 subcontinents: 

• Americas (North America, South America, Central America, Caribbean)
• Asia Pacific (Central & South Asia, Northeastern Asia, Southeastern Asia, Australia and Oceania)
• Europe (Northern Europe, Southern Europe, Eastern Europe, Western Europe)
• Middle East/Africa (Middle East, Northern Africa, Southern Africa)

Period starting at the beginning of the current year (or fiscal year) and ending on the current date.

Calculations reference 1 January as the default start date. Individual companies may specify a different fiscal year start date (e.g. 1 April), which will affect subsequent YTD calculations.