Having Comp Sets Improves RevPAR: STR

　　STR’s U.S. Comp Set Study, which analyzes 30,000 comp sets in the United States, found there is a direct correlation between the number of comp sets a property has and their revenue-per-available-room performance.

　　“Comp sets are a vital component in helping properties understand how they stack up to their competitors,” said Carter Wilson, director at STR Analytics. “Your RevPAR index is a direct reflection of not just the performance of your competition but also how relevant that competition is to you. Therefore, it’s critical for hoteliers to understand their own comp set and strive to optimize it.”

　　The study also revealed that higher-tier classes and properties with higher rates are more likely to have multiple comp sets. These types of hotels are generally more complex in nature. Having multiple comp sets allows these hotels to identify more specific opportunities for growth within their competitive environments.

　　Other key findings from the study include:

　　Nationally, only 45.1% of the properties in your primary comp set name your hotel in their primary comp set

　　Room rate is one of the most accurate indicators of true competition

　　Luxury, upper upscale, upscale and upper midscale segments generally name comp sets that have average daily rates below their own ADR, while the midscale and economy segment properties generally name competitors with higher ADRs than their own

　　Only 45% of all hotels reviewed had a RevPAR index of more than 100%

　　Properties with two or more comp sets are more likely to have higher RevPAR indexes in their primary comp set, with the highest average index of 109%, primarily driven by rate, recorded by hotels with three comp sets