What is a hotel star report?
February 3, 2020|Hotel Marketing
Believe it or not, there are still a lot of property owners out there who invest millions of dollars into a hotel but do not know what a STAR Report is.
The Smith Travel Accommodations Report, or STAR Report for short, is a benchmarking tool used to evaluate a hotel's performance against its competitive set. It allows a hotel to compare its performance against properties in the same geographical area, market segment and customer base.
For example, if you own a limited-service hotel in Philadelphia, you can pick five similar properties in the market and you will be able to see in the STAR Report how your occupancy rate, average room rate or revenue per available room is doing in comparison to your competition.
While you cannot see the rankings of each property, you are able to see the overall average of the competition and where your property stands in relation to them.
There is no way for us to know how well we are doing if we cannot see how the rest of the market is doing. We might think that our property is doing well if we see an upward trend in our revenues for the current and previous years when in truth, our competitors’ profits are increasing at a much faster and higher rate.
Finally, once we know how we compare to our competition, we can adjust our hotel’s strategy to help us meet our occupancy and revenue goals.
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