Orientation to Data Terms and Measures used in the Lodging Industry Governmentwide Travel Advisory Committee Washington DC, July 30-31 Steve Hood Senior VP Research, STR

STR (Smith Travel Research) The recognized leader in hotel research, STR provides a benchmarking service to the industry. STR obtains performance data from over 70% of US hotels (and 50% of WW hotels), including 95% of chain hotels and most significant independent properties. STR provides monthly and weekly STAR Reports to nearly 50K hotels. STR maintains a Census database of over 150,000 hotels throughout the world.

Benchmarking 101: my hotel vs. the competition Which manager gets the bonus? (first in a “data vacuum”, and then with competitive set data)

Who does STR serve? Hotel Companies and Hotels (independents, survey program) Convention & Visitor Bureaus, Tourism and travel organiza- tions, Hotel associations (AHLA, US Travel, 600+ CVBs, non-US also) Developers, Consultants, Appraisers (all use STR data) Wall Street, Accounting, Financial firms (all hotel-related orgs) Media (Wall St Journal, USA Today, Washington Post, Financial Times) International hotel conferences (presentations) Hotel vendors (HBO, Starbucks, Google, Expedia, TripAdvisor) Governments (US: GSA, FEMA, Commerce, BLS, NPS; non-US also) Academia (universities, professors, students)

Types of Hotel Data Performance Data Additional Data Rooms Available, Rooms Sold, Revenue, Occupancy, ADR Monthly and Daily data 30,000 hotels in the US, with data starting in 1987 Segmentation = Group, Transient, Contract Additional Data Hotel Attribute Info Additional Revenue Pipeline (under con- struction, in planning) Forecast Non-US Performance (20K hotels throughout world) Profit and Loss

Flow of Hotel Data STR maintains a thorough Hotel Census database 50+ K hotels in the US (100+ K non-US) STR maintains the official hotel database for AH&LA, … Hundreds of fields of detailed attribute and historic info Staff of 25+ perform daily adds and updates STR Obtains raw performance data on daily basis From multiple companies and hotels Data files/exports straight from systems of hotels Also web-based user interface for independents

Methodologies and Processes Confidentiality rules Protect the identity of specific hotel or company Isolation checks Sufficiency checks Percentage checks Procedures to ensure/increase accuracy Comprehensive error checks are performed at loading All exceptions are verified with data providers Extensive QA checks performed during processing

Hotel Industry Metrics Raw Data Supply = Rooms Available Demand = Rooms Sold Revenue = Room Revenue Key Performance Indicators (used by GSA) Occupancy = Demand / Supply ADR = Revenue / Demand Percent Change (this year compared to last year) Weekday (Sun-Thu) versus Weekend (Fri-Sat)

Hotel-related Categorizations Geographic STR Markets and Tracts Non-geographic Scale – 7 groups based upon average ADR of brand Luxury – Four Seasons, Ritz Carlton Upper Upscale – Marriott, Hilton Upscale – Courtyard, Hilton Garden Inn Upper Midscale – Hampton, Holiday Inn Midscale – Best Western, Comfort Inn Economy – Super 8, Motel 6

Standard Reports and Data Files Property Level STAR Reports Monthly Weekly Ad-Hoc Performance Reports Trend Reports Pipeline Reports HOST Reports Forecasts Industry Publications Monthly/weekly US/Global Also wide range of different types of special reports and data files for GSA

STR Benchmarking and Performance Reports and Data Files Type of Report Customer Delivery Type of Performance Data Comparative Type WW Subscrip -tion Ad-hoc Month -ly Daily/ Weekly Segment -ation Additional Revenue Other Data STAR Reports hotel yes yes, one-time run indexes, ranking, bandwidth, RPM subject vs. comp set(s) and industry segments Trend Reports hotel or 3rd party   raw data, run 12, WD/WE, DOW, Group 1 vs. Group 2 HOST Reports yes  P&L data: revenues, expenses, profits participant version is Census Database company or 3rd party hotel attribute info, 100 fields, … Pipeline Report hotels UC & in planning, more Forecasts projections, top markets DataCast 3rd party projections, user-defined groups Property & Room Counts hotel counts, multiple subtotals Industry Data File  yes special analyses, multiple segments Transaction Report hotel sales-related info Corporate Reports hotel company special analyses, user-defined brand vs. comp sets, scale, corp comp sets Destination Reports CVB or company can include comparable markets Publications Hotel Reviews, Pipeline version Directory hotel company info: chains, mgtcos, …

Total US Occupancy and ADR Percent Change Running 12-month Occupancy and ADR % Change from January 1990 to June 2013 7.5% 6.8% 4.0% -6.7% -9.7%

Total US Actual ADR Running 12-month ADR from January 1998 to June 2013 $107.94 May 13 $107.75 Sep 08 57 months to recover $97.01 Apr 10

Steve Hood, steve@str.com +1 615 824 8664, extension 3315