CHIA Competitive Intelligence & Benchmarking 3

Question 1

A hotel's competitive set ADR is $150 and the hotel's own ADR is $165. What is the hotel's ARI?

Accepted Answer

110

Answer

ARI = (Hotel ADR ÷ Competitive Set ADR) × 100 = ($165 ÷ $150) × 100 = 110, indicating the hotel charges 10% more than its comp set average.

Question 2

Why might a hotel manager dispute the composition of their STR competitive set?

Accepted Answer

To ensure the set accurately reflects properties competing for the same guests

Answer

The comp set should represent actual market competitors; managers may challenge the set to remove non-competing properties or add true rivals that distort benchmark accuracy.

Question 3

In STR benchmarking, what does a 'pipeline' report track?

Accepted Answer

Future room supply entering the market through new construction and conversions

Answer

STR's pipeline report tracks hotels under construction, final planning, or in planning stages, helping analysts anticipate future supply changes in a market.

Question 4

A market's RevPAR Index (comparing market RevPAR to a national baseline) is 115. What does this tell a hotel investor?

Accepted Answer

The market outperforms national averages by 15% on RevPAR

Answer

A market index of 115 versus a national baseline means that market generates 15% more RevPAR than the national average, indicating stronger revenue performance.

Question 5

Which factor would most likely cause a hotel's MPI to increase without any change in its own occupancy?

Accepted Answer

A competitor in the comp set closes for renovation, reducing comp set supply

Answer

If a competitor removes rooms from the comp set (e.g., for renovation), the comp set's total available rooms decrease, raising the average occupancy metric, but the subject hotel's MPI changes because its fair share and relative index recalculate.

CHIA - Certified in Hotel Industry Analytics Practice Test

CHIA - Certified in Hotel Industry Analytics Practice Test

CHIA Competitive Intelligence & Benchmarking 3