Beyond the Hotel Performance, How to Identify a Correct Hotel Competitive Set?

Revenue Your Hotel | June 1, 2015

by Ahmed Mahmoud Accurately identifying a competitive set is important for a hotel market study because the data provide both a more accurate perspective on a hotel's historical operating performance and a basis for projecting a hotel's future performance. The competitive set provides a context for understanding a hotel's relative occupancy, average daily rate (ADR) and the revenue per available rooms (RevPar) performance and also establishes a baseline for and constraints on the projection of a hotel's future operating potential. In essence, the determination of a competitive set allows for supply and demand trends in the market to be ...