1. Hotel Industry Research – an STR Perspective
The SHARE Center
Supporting Hotel-related Academic Research and Education

2. Table of Contents Brief intro to STR How do we work with others?
SHARE Center, Products and Services
What data does STR track?
How do we look at hotel data?
Types, metrics, and perspectives
How do we work with others?
Past research, future possibilities

3. Who is Smith Travel Research?
The recognized leader in hotel benchmarking
STR samples (obtains performance data from) over 70% of total U.S. room supply (99% of chain hotels and most significant independent hotels) and nearly 50% of total global (non-US) room supply
STR provides monthly, weekly, and daily STAR reports to over 42,000 hotels
Impartial, timely, confidential, and accurate

4. Who does STR serve? Hotel Companies and Hotels (most GM’s bonuses)
Convention & Visitor Bureaus, Tourism and travel organizations, Hotel associations (endorsed by AHLA)
Developers, Consultants, Appraisers (most bank loans)
Wall Street/Accounting firms, Financial institutions
Media (Wall St Journal, USA Today, …)
National & international hotel conferences (keynotes)
Hotel vendors (HBO, Sealy, Starbucks, …)
Educators
Government (GSA, FEMA, BLS, DOE/HS, NPS, Commerce, …)
Main customers are hotel companies, enabling us to serve many third parties including universities

5. A Little History of STR
1985 – founded, started collecting hotel attribute info
1987 – started collecting monthly sales data
1992 – started collecting data outside US, NA then WW
1999 – started collecting daily data
2008 – launched STR Global (offices in London, Singapore, Tokyo, Beijing, Dubai, Australia, Italy, Brazil, …)
2008 – launched Hotel News Now (offices in Cleveland)
2009 – RRC and STR Analytics (offices in Boulder)
2009 – launched Hotel Data Conference
2011 – launched the SHARE Center

6. The SHARE Center The Mission: A Global Partnership:
Provide thorough and timely data for academic research
Provide comprehensive and relevant training materials for the classroom
A Global Partnership:
STR, ICHRIE, and others (AHLEI, industry)
Launched in 2011, over 80 schools now involved around the world

7. Resources from the SHARE Center
Ability to order ad-hoc reports: Trends, HOST (P&L), Pipeline, Census data, Forecasts, others
Ability to generate Destination reports
Training programs, Train the Trainer sessions
Comprehensive set of sample reports
Publications, access to articles and presentations
STR Census database, hotel company database
Help with research, hotel industry reference info
Campus visits, webinars, updates, forums
Student certification in Hotel Industry Analytics

8.
Free electronic news service. Click “Join” and you’ll get an every morning with headlines. Click to read
Focus on data/performance, latest issues, conferences; global topics
User-friendly search cap- ability, 3 years of past articles
Great for current events, staying connected to Industry

9. What data does STR track?
Hotel census data – attribute information
Name, address, phone, number of rooms
Geographic & non-geographic categorization, lat/longs
Amenities, physical info, affiliations, & history (changes)
US & WW hotels
Pipeline data
Hotels under construction
Projects in planning stage
Rooms sales data – performance information
Rooms available, rooms sold, & room revenue
Monthly & daily

10. Other types of data: Segmented sales data Additional Revenue data
Group, Transient, & Contract
Rooms sold & Room revenue
Additional Revenue data
Food & Beverage Revenue
Other Revenue
Total Revenue
Profit & Loss data - HOST=Hotel Operating STatistics
Multiple revenue & expense accounts
Also payroll, fees, taxes, profit
Collected annually
Channel data – rooms & revenue by booking source

11. Data Participation & History
Type of Data US
WW (non-US)
# Hotels
Back Data
Census/Attribute
52K
1985*
95K
1992*
STAR - monthly
29K
1987
13K
varies
STAR - daily
28.5K
1998
2000
Group/Transient
4K**
2002 1K
2007+
Additional Revenue 3K
HOST (annual P&L) 6K
1991 2K
1997
Pipeline
4K***
2008
* Started tracking data/changes in this year, hotels open back to 1750,
** 95% of Luxury and Upper Upscale hotels, *** # of current projects

12. Overview of Products and Services
Contract Reports:
Hotels: STAR Property Report
Hotel Companies: Corporate Reports & Data
CVBs/Tourism Orgs: Destination Reports
Ad-hoc Reports
Publications
Industry presentations
Additional Services

13. STAR Property Reports
ed to hotel on monthly, weekly, and daily basis
Compare subject hotel to comp set(s) and industry segments
Displays performance metrics for different time periods
New: Spa STAR, Casino STAR

14. Monthly STAR Report - Competitive Set Tab

15. Weekly STAR Report - Perspective Pages

16. Bandwidth Analysis Report

17. Corporate Reports & Data Files
Various reports and raw data files for corporate and regional staff
Used by headquarters of hotel companies, correlate with internal data
Lots of different types of data, comparison options, methodologies

18. Destination Reports
Monthly and weekly reports generated for nearly 600 CVBs, DMOs, and Local Tourism Organizations
Variety of templates/ pages and different industry segments or user-defined groups
Provide additional help for for CVBs

19. Ad-Hoc Reports Trends Pipeline
Select industry segment or user-defined set of hotels
Displays monthly data for 5, 10, or 20 years, also daily, group/transient, running 12
Pipeline
Display hotels under con- struction, projects in planning, existing hotels, and conversion activity

20. Ad-Hoc Reports HOST Reports Census Database
Select industry segment or user-defined set of hotels
Displays revenue and expense detail, including profitability
Census Database
Nearly 100 fields of hotel information, attributes, affiliations, history, …

21. Publications US Hotel Reviews Forecasts Monthly & Weekly
Provide overview of industry performance (US, Scales, Locations, Regions, Top 25 Markets)
Forecasts
Project future performance
Available for 25 US and 44 WW markets

22. WW Publications Global Hotel Reviews WW Country Reports
Versions for Americas, Europe, Asia/Pacific, and Mideast/Africa
Overview of industry performance
WW Country Reports
Available for 13 countries and country groups including Canada, UK, Germany, China, India, …
Detailed performance within a country

23. Occupancy back to 2008 level, ADR ½ way, RevPAR ⅔ way
Industry Presentations Total US - Key Performance Indicators Annual 2007, 2008, 2009, 2010, and 2011
Occupancy back to 2008 level, ADR ½ way, RevPAR ⅔ way

24. STR Special Projects Projects such as Distribution Channel Study
Assisting the GSA for Per Diem Rates
User-defined analyses based on STR data, i.e.: Gulf Oil Spill Impact, Katrina
Special research for hotel companies, i.e: ramp-up analysis
Surveys such as Travel Intention Survey and AHLA Hotel Survey
Work with third parties

25. How do we look at hotel data?

26. Running 12-Month Performance Data
Actual Values and/or Percent Changes
Running 12-month data removes seasonal variation
Historic data allows you to compare performance in different economic cycles
Look at “peaks” and “troughs”, rates of decline and rebound
Compare multiple metrics to see relationships

27. Total US - Supply and Demand Percent Change
Twelve Month Moving Average, Jan 1989 to Dec 2011
Supply:
3.0% (Sep 09)
0.6% (Dec 11)
-0.9%
Demand:
7.0% (Aug 09)
7.8% (Feb 11)
5.0% (Dec 11)
- 4.6%
2010 saw strongest Demand increase in history and sharp Supply decrease

28. Occupancy leveling, ADR returning, very different recovery than 2002!
Total US – Occupancy and ADR Percent Change
Twelve Month Moving Average, Jan 1989 to Dec 2011
ADR:
-8.9% (Jan 10)
3.7% (Dec 11)
-4.5%
0.0%
Occupancy:
-9.7% (Sep 09)
6.3% (Apr 11)
4.5% (Dec 11)
-3.4%
-6.7%
Occupancy leveling, ADR returning, very different recovery than 2002!

29. Major challenge for the industry – making up the lost ADR!
Total US - Occupancy & ADR Actual Values Twelve Month Moving Average – Jan 1997 to Dec 2011
Major challenge for the industry – making up the lost ADR!

30. ADR Discounting at Twice the Speed of ADR Recovery Total US Actual ADR, 12 Month Moving Average,
Sept ‘08
$108
Dec ‘11
$102
-10%
+4.6%
19 Months
19 Months
Apr ‘10
$97

31. Seasonally Adjusted Data
Seasonally adjusted data shows more volatility (quicker response) than Running 12-month data.
Seasonally adjusted data is calculated using a few simple steps to remove reoccurring seasonal patterns from a time series to better show the underlying trend line.  A twelve month moving average is computed and then centered to the middle of the yearly cycle. These averages are then used to calculate “seasonal factors” for each month, which are then applied to the original time series.

32. Total US Occupancy – Seasonally Adjusted and 12-month
Moving Average, January 1989 to August 2011

33. Demand at record high level for most of 2011!
Total US - Actual Monthly Room Demand
Millions of Room Nights, Seasonally Adjusted, Jan 1998 to Dec 2011
Demand at record high level for most of 2011!

34. Raw Monthly Data Actual Values and/or Percent Changes
Shows monthly detail
Valuable to look at percent changes over time
Shows seasonal affects of metrics like Occupancy, ADR, or RevPAR
Interesting perspective to show January to December and graph separate years

35. Close up of monthly Supply percent changes for last couple of years
Total US - Monthly Supply Percent Change
January 2005 to December 2011
Stuck around 3% for almost a year
Close up of monthly Supply percent changes for last couple of years

36. Total US - Historic ADRs for last three years Monthly Numbers, January 2007 – September 2009
2008 Smith Travel Research, Inc.

37. Daily Data Types of daily data: Running 28-day data
Weekday/Weekend data
Day of Week data
Weekly data
Shows performance as of last week
Shows closer affects of holidays and special events
Can correlate to business vs. leisure travel

38. Total US – Daily Demand & ADR Percent Change Running 28 Day Daily Data - January 1 to October 31, 2009
Labor Day
Start of
Summer

39. Total US – Occupancy by Day of Week Annual 2008, 2009, 2010, and 2011
2011 Occ above 2008 level on Friday, Saturday, and Sunday

40. Total US - ADR by Day of Week Annual 2008, 2009, 2010, and 2011
Day of Week 2011 vs ADR diffs: weekdays - $6-7, weekends - $4

41. Segmentation Data
Compare Group versus Transient actual metrics and percent changes
You can look at monthly, daily, or weekday/weekend data
Shows relationships between the different segments
Group Demand can be affected more during downturns than Transient Demand
Group ADR decreases and recovers more slowly than Transient ADR

42. Transient Occupancy breaks records … Total US Monthly Transient Occupancy – January 2007 to December 2011
Group/Transient data for upper end hotels (Lux, Upper Up, top ⅓ indeps)

43. Above 2009 & 2010 levels, but not above 2007 & 2008
But Transient ADR is not Total US Monthly Transient ADR – January 2007 to December 2011
Above 2009 & 2010 levels, but not above 2007 & 2008

44. Above 2009 & 2010 levels, closing in on 2007 & 2008 levels
Group Occupancy above 2010, but below 2007 levels Total US Monthly Group Occupancy – January 2007 to December 2011
Above 2009 & 2010 levels, closing in on 2007 & 2008 levels

45. Above 2009 & 2010 levels, still below 2007 & 2008
Group ADR improving, but below 2007 & 2008 levels Total US Monthly Group ADR – January 2007 to December 2011
Above 2009 & 2010 levels, still below 2007 & 2008

46. Total US - Group & Transient Demand % Change Running 28 Day – January 31, 2008 to March 28, 2010
10%
July 2009
Oct 2008
-20%

47. Total US - Group & Transient Absolute ADR Running 28 Day - January 31, 2008 – August 15, 2009
Group ADR
surpasses
Transient ADR

48. Total US - Transient Occupancy & ADR % Change Weekday / Weekend (without Sundays) – September 26, YTD
ADR almost
the same?
Transient occupancy
much less impacted
on weekends
2009 Smith Travel Research, Inc.

49. Total US - Group Occupancy & ADR % Change Weekday / Weekend (without Sundays) – September 26, YTD
ADR almost
the same?
Group occupancy less impacted on weekend
2009 Smith Travel Research, Inc.

50. Pipeline Data Types of data: Hotel openings and closings
Hotels under construction and in planning over time; or by scale, brand, or market
Attrition, abandonment, deferrals, and duration
Changes to existing supply, conversion activity chain to indep, scale to scale, or brand to brand
Provides critical perspective on the future and better understanding of the past

51. Total US - Closed Hotels Annual 2004 through 2011
65,242 rooms in 2005 to 14,265 rooms in 2010
Huge decrease in closed hotels leading up to 2010, small resurge in 2011

52. Total US - Opened Hotels Annual 2004 through 2011
153,623 rooms in ,667 rooms in 2010
Continued decrease in new development in 2011
Significant drop in number of new opens in 2010 and 2011

53. “Accelerated Deceleration” On All Counts
Source: STR / TWR / Dodge Construction Pipeline

54. Top 10 Markets – Rooms Under Construction February 2009 – in Thousands

55. Top 10 Brands – Rooms Under Construction February 2009 – in Thousands

56. STR Pipeline Attrition Rate Long Term Average (2002 – 2009)

57. Total United States - Abandoned Rooms by Month
Total United States - Abandoned Rooms by Month February 2008 – February 2009

58. Total US - Hotel Conversions: Chain → Independent 1990 through 2008
2009 Smith Travel Research, Inc.

59. HOST (Profit & Loss) Data
Types of P&L data:
Additional revenue accounts, total revenue, F&B
Expense accounts, i.e. payroll, marketing, A&G, …
Profitability measures: GOPPAR, TRevPAR
Metrics:
Total Dollars
Ratio to Sales
Amount per Occupied or Available Room
Compare over years or different types of hotels

60. Total US - Estimated Total Revenue and Profitability Annual Numbers from 2001 to 2010
Total Revenue and Profit in Billions

61. Additional Data & Perspectives
Hotel Census statistics - property and room counts by various attributes
Mapping data - location of hotels or performance
Distributions – numbers of properties in ranges
“Winners & Losers” – based upon multiple metrics
Peaks, valleys, and change – high, low & difference
Sellout nights – number of props at occupancy levels
Compare hotel performance to economic data
Booking channel data

62. Maryland Hotel Census Statistics by Brand, July 2009 YTD
Chain
Census Props
Census Rooms
Sample Props
Sample Rooms
Marriott 10
3823
Holiday Inn 15
3038
Comfort Inn 27
2925
Courtyard 18
2649 17
2558
Hampton Inn 22
2555
Hilton 8
2464
Sheraton Hotel
2376
Days Inn
2270
Best Western
2059 13
1600
Gaylord Entertainment 1
2000
Residence Inn
1861
Holiday Inn Express Hotel
1675
Hilton Garden Inn 11
1519
Quality Inn 12
1515
Red Roof Inn
1312
Hyatt 3
1278

63. Destination Resorts - Properties: 321 & Rooms: 158,429

64. Lesser participation in Africa and parts of S. America and Mideast
WW STAR Participation
Lesser participation in Africa and parts of S. America and Mideast

65. Total United States ADR Percent Change Number of Properties - June 2009 YTD
Industry average: - 8.7

66. Total United States – Occupancy/ADR Winners & Losers Year End 2007 – Quarterly 2008
2008 Smith Travel Research, Inc.

67. Recent ADR Compression by Scale : Threat or Opportunity?
US Chain Scales, Actual ADRs, Peak (2008) vs. Valley ( )
Compression especially at top end, differences narrowed, trade-up easier

68. Average Number of Days Sold Out Total US, Annual Numbers by Day of Week, 2000-2005
2008 Smith Travel Research, Inc.

69. Inflation Adjusted ADRs Currently Well Out Of Reach
$117
2007 ADR Grown By CPI
$107
$101
2000 ADR Grown By CPI
$85
$85
$104
$107
$109
Total US Actual ADRs and Inflation Adjusted ADR, 2000 – 2013F
2000–2010 CPI from bls.gov, 2011–2013 CPI from Blue Chip Econ Inds

70. Demand Share by Channel for Total US Annual 2009 & 2010 (Percent of Total Room Nights)
Small YOY increases in OTA, Brand.com, GDS
Small YOY decreases in CRS/Voice, Prop Direct/Other

71. Comparative Analyses Compare various geographic segments:
Continents - Sub-continents - Countries
Regions - States - Markets
Tracts - Counties - Zips
Compare various non-geographic segments for a specific area:
Scale - Class - Location
Compare performance for various points in time, i.e.: downturns and recoveries

72. Americas – Occupancy Percent Change
Twelve Month Moving Average – Jan 1999 to Feb 2010
2010 Smith Travel Research, Inc.

73. Selected European Cities
Occupancy & ADR % Change Year End 2009
OCC %
Copenhagen
Berlin
Helsinki
Paris
Brussels
Rome
Budapest
Zurich
Amsterdam
Stockholm
London
ADR %
Madrid
Prague
Athens
Moscow

74. US Regions – Occupancy, ADR, & RevPAR % Chg Annual 2009
TOTAL US
Occupancy: ▼ -8.7%
ADR: ▼ -8.8%
RevPAR: ▼ %
2008 Smith Travel Research, Inc.

75. Comparative Gatlinburg Tracts - RevPAR %Chg December 2009 YTD
the best!
2008 Smith Travel Research, Inc.

76. Total United States by Scale Year To Date April 2009
Properties
Room Supply
Room Revenue
2009 Smith Travel Research, Inc.

77. Total US Upper vs Lower End Demand % Change

78. Locations – Demand Percent Change Annual 2008, 2009, 2010, and 2011
Urban, Suburban, and Airport big winners in 2010

79. Top 25 Markets - ADR Percent Change, Annual 2011
Wide disparity between top 25 markets

80. Top 25 Markets vs. Rest of US - Quarterly RevPar % Change 1st Quarter 2007 – 2nd Quarter 2009
Top 25 rise faster but
also fall farther

81. Three very different economic cycles
Total US – Post-Recession Demand Percent Change 12 Month Moving Average - From Start of Recession, by Month
Three very different economic cycles

82. How do others use STR data?

83. STR provides a great deal of data for academic research A partial list follows …

84. Examples Relationship Between Product Quality and RevPAR (1999)
Acquisitions, Openings, and Promotions (1999)
Developing the Fill Picture on Hotel Industry Averages (2001)
The Influence of Gasoline-price Fluctuations on US Lodging Demand (2002)
A Case Study of Virginia Beach Hotels (2002)
Impact of NFL Games on Lodging Industry Revenue (2003)
Hotel Pricing in a Networked World (2003)
A Comparison of Forecasting Methods for Hotel Revenue Management (2003)

85. More examples
The Role of Brand Affiliation in Hotel Market Value (2006)
Revenue Management with Limited Demand Information (2008)
Relationship of Sales and Marketing Expense to Hotel Performance (2008)
Competitive Hotel Pricing in Uncertain Times (2009)
Falling Industry Profits (2009)
Lodging Demand for Urban Hotels in Major Metropolitan Markets
Why Discounting Doesn’t Work
An Examination of Revenue Management in Relation to Hotels’ Pricing Strategies

86. Even more examples
The Agglomeration Conundrum: How Co-location Helps Some Hotels and Hurts Others
Why Discounting Still Doesn’t Work: A Hotel Pricing Update
Revenue Management in US Hotels:
Pricing for Revenue Enhancement in Asian and Pacific Region Hotels: A Study of Relative Pricing Strategies
Product Tiers and ADR Clusters: Integrating Two Methods for Determining Hotel Competitive Sets
Hotel Rebranding and Rescaling
Strategic Hotel Development and Positioning: the Effects of Revenue Drivers on Profitability

87. Performance of Groups of Hotels Over Time
Could be some sort of impact analysis, such as weather related or a special event (hurricane, oil spill, Red Tide, Occupy movement)
Could be one or more sets of hotels, also possibly a “control” group
Possible to define groups by standard industry fields (single or combinations) or based upon specific hotels. You may need a file to define the groups.
STR can produce monthly or daily data for each group

88. Correlating STR data with 3rd parties
There are many situations where people want to correlate the STR performance or P&L data to the data from another organizations
Here are a few examples of the 3rd party data:
Sustainability/green certification
Customer satisfaction or review data
Researchers would like to compare the third party data to a metric such as RevPAR or profitability
Talk to us more about the options and steps

89. We look forward to working together!
Steve Hood
, ext. 3315