Educational

Performance benchmarking is paramount in the hospitality industry, and whether measuring success against yourself, the competition or a specific segment of the market, the process involves foundational historical metrics. 

Hotel competitive sets, commonly known as “comp sets,” are a core element of STR’s performance benchmarking program. Without a comp set, and the marketplace intel that comes along with it, you’re left guessing as to where you can improve the performance of your property or portfolio.

Key to understanding your hotel’s profitability, your P&L statement outlines your profits or losses over a given time period—as the name suggests.

Our Custom Forecasts provide hotel owners, operators, investors, revenue managers and industry stakeholders with an approachable way to obtain top-line hotel market projections. Launched as an affordable alternative to major consultancies, they offer price points intended to be digestible even at the property level. While Custom Forecasts have grown exponentially year-over-year since their 2014 launch, many industry participants are still unaware that STR offers such a product.

Hotel owners and operators are best positioned for success when they measure their business from every angle. That is why no benchmarking experience can be considered comprehensive without frequent insight into the bottom line.  

Tracking hotel operating expenses is vital in understanding your property's financial performance and better managing costs, which is part of the equation for increasing your profit margins. Given that gross operating profit is calculated by subtracting total operating expenses from total operating revenues, minimizing expenses and maximizing revenue is the obvious approach to boosting profits.

• How to calculate RevPAR (Formula and Examples)
• What is the relationship between ADR and RevPAR?
• How to use RevPAR
• The Role of RevPAR in Profitability
• RevPAR Alternatives

What is Revenue per Available Room (RevPAR)?

How P&L statements help you understand your hotel profitability

Understanding your hotel’s financial performance involves thorough analysis of your balance sheet and what is often called your income statement – more commonly referred to as your

In a previous post, we discussed the vital role of RevPAR when measuring hotel performance.

If you’re familiar with the hotel revenue management discipline, you probably know that its strategic cycle comprises four main stages—analyze, identify, develop and monitor. You’re probably also familiar with the STAR Report and the dSTAR platform, which empower you with the data intelligence needed to navigate each of those stages and measure your property’s performance on an ongoing basis.