str global 2014 importance of hotel data congreso nacional de hoteleros de chile thomas emanuel...

STR Global 2014 www.strglobal.comwww.strglobal.com

Importance of Hotel DataCongreso Nacional de Hoteleros de ChileThomas Emanuel

Director of Business Development

Valdivia

28th September 2014

STR Global 2014 www.strglobal.com

Agenda

- Who are STR Global?- Why Benchmark?- STAR Report- Global Hotel Performance- Regional Hotel Performance- Chilean Hotel Performance- Questions


Who are we?

• STR in North America and STR Global internationally

• Privately held with 27 years of experience we have long-established credibility and integrity– Confidentiality of data assured– Meticulous quality control processes– No individual, brand or company data ever disclosed

• Largest source of independently collected global performance data– 49,700 hotels, 6.7 million hotel rooms globally– 9,710 hotels, 1.37 million rooms across EMEA– 6,100 hotels, 1.2 million rooms across ASPAC– 760 hotels, 122,000 rooms across CSA

• Unparalleled depth and breadth of market coverage

– 461 markets, 1442 submarkets in 168 countries across 6 continents– Historic data on most markets back to 1996

• Supported by majority major international and national hotel chains and independent hotels


Global offices

Beijing, Dubai, Guangzhou, Jakarta, London, Milan, Nashville, Sao Paolo, Singapore, Sydney, Mumbai & Tokyo


Why should hotels benchmark?


‘In the business world, the rear view mirror is always clearer than the windshield’

Warren Buffett


‘Bad news is not like a fine wine, it doesn’t improve with age.’

Colin Powell


‘Benchmarking is simply about making comparisons with other organisations and then learning the lessons that those comparisons throw up.’

European Benchmarking Code of Conduct


What is benchmarking?

oThe continuous process of measuring your products, services and business practices against your toughest competitors or against industry leaders

oTool to enable a company to perform at ‘best-in-class’ level in any given business process

oIdentify, quantify and prioritise improvement opportunities offering the greatest potential return, plus highlight areas of risk


Who’s performing better?

Series1-20%

-10%

0%

10%

20%

7%

15%

Manager A

A's Competitors

YO

Y C

ha

ng

e

Series1-20%

-10%

0%

10%

20%

-3%

-10%

Manager B

B's Competitors

YO

Y C

ha

ng

e

Benchmarking your hotel against the competition


The Value of Benchmarking – Property Level

Rooms• Are my occupancy levels any good?• How do my average rates compare to my competitors?• How is my week versus weekend business?• Am I growing my share of the market?• Am I going to get my bonus• Is my revenue strategy right?• Does my Sales & Marketing effort need changing?Other operating departments• Do my F&B outlets generate as much revenue as my competitors?• How efficient is the hotel at converting revenue to profit?• How does my payroll compare with the industry norm?Guest service• How did our guests rate their experience?• Could our service standards be improved?


Why Benchmark ?

• Identify and maximise revenue opportunities

• Make informed business decisions – based on facts

• Assist with Budgeting process

• Plan marketing and sales activities

• Fine-tune your pricing strategies

• Analyse competitive markets specific to your hotel

• Spot trends and be alerted to changes in market conditions

• Be profitable during a downturn

• Forecast changes in demand and supply


Measurements of Performance

• Occupancy No. of rooms sold %No. of rooms available

• ADR Net Room RevenueRooms sold

• RevPAR Net Room Revenue OR Occupancy X ADRNo. of rooms available

• Market Indices MPI, ARI, RGI

subject hotel divided by comp set

• Financial GOPPAR, TrevPAR


STAR vs Hotel Survey

Rooms sold, rooms revenue & available rooms

We send our reportsvia email or our online tool @ www.strglobal.com

Free programme for participants

Your performance vs. the geographical market

Hotel Survey

Annual subscription

Your performance vs. Competitive set of your choice

STAR Report

http://www.strglobal.com/


Report: Hotel Survey

Information about the market

FREE


STAR Report

Information about a specific group of competitors

FREE$

Information about the market


The STAR Report

Simply submit:

• Rooms sold

• Rooms available

• Rooms revenue


Why Benchmark?

Key features of the STAR report

• Glance tab (tab 1)

• A snapshot of recent performance

• Three main KPI’s

• Trends; YTD, running 3, running 12

• Index; market share


Why Benchmark?


• Monthly Comp Set Comparison (tab 2)

• Monthly performance (last 18 months)


• Index; market share

• Rank

• Percentage change

• Visuals


Why Benchmark?


• Day of Week Comparison (tab 6)

• 3 KPI’s

• Establish strong and weak

nights of the week

• Implement and monitor

sales/revenue strategies

• Weekend/Weekday

comparison


Why Benchmark?


• Daily data by month (tab 8)

• Daily data shown by date


• Use historical data to forecast for annual

events etc.


Why Benchmark?

STAR & Survey Lite – available in Spanish

Ocupación (Occ)

Mes en curso (%) cambio Acumulado 3 meses (%) cambio año hasta la fecha (%) cambio

Mi Propiedad 68.9 26.8 p 78.5 13.0 p 72.5 8.1 p

Set Competitivo 37.8 -3.4 q 54.6 7.1 p 49.9 10.9 p

clase de submercado 54.8 3.0 p 69.7 3.2 p 65.5 3.6 p

Índice del Set Competitivo (MPI) 175.8 31.2 p 145.9 5.5 p 147.6 -2.6 q

clase de submercado Índice (MPI) 123.5 23.0 p 112.5 9.5 p 111.5 4.4 p

Puesto de la propiedad dentro del Set Competitivo 2 of 5 1 of 5 p 2 of 5 1 of 5 p 2 of 5 3 of 5 p

Tarifa Promedio (ADR)


Mi Propiedad 181.50 -3.9 q 208.50 -3.3 q 208.60 3.9 p


clase de submercado 108.75 -1.6 q 122.56 -1.3 q 117.50 1.6 p

Índice del Set Competitivo (ARI) 95.40 2.4 p 94.15 -3.5 q 95.50 3.5 p

clase de submercado Índice (ARI) 167.89 -2.4 q 175.62 -2.0 q 178.58 2.2 p


Revenue Per Available Room (RevPAR)


Mi Propiedad 118.56 21.8 p 156.80 9.3 p 149.52 12.3 p


clase de submercado 59.64 1.4 p 82.45 1.8 p 76.15 5.3 p

Índice del Set Competitivo (RGI) 167.50 34.3 p 134.52 1.8 p 138.25 0.9 p

clase de submercado Índice (RGI) 202.56 20.1 p 190.36 7.4 p 196.54 6.7 p



STR Competitive Set Guidelines

1. Minimum 4 reporting hotels (excluding my property)

2. Single hotel or chain can’t have more than 40% of the room supply

3. Single company can’t have more than 60% of the room supply

Your competitors have one or several similarities with you this could be:

• Geographic - Location

• Services – Amenities

• Target market

May have multiple competitive sets & include/ exclude your own hotel.

Individual data is confidential and will never be isolated/published


Confidentiality & security

• Our business is your business – it’s in our best interest to ensure confidentiality and security of data

• Trustworthy, third party provider• Aggregated data – your individual performance is never

isolated• Never report on less than 4 properties – to eliminate

potential isolation• Strict data reporting guidelines• Data checks• GIGO – Garbage In Garbage Out


The STAR Report Options

• Analyse your hotel’s performance:

• Daily / Weekly / Monthly

• ‘Push’ Reports delivered automatically via e-mail

• ‘Pull’ Reports 24/7 – via our Online Tool

• SPECIAL OFFER FOR CONGRESO NACIONAL DE HOTELEROS DE CHILE!


Global Performance


Our Coverage

+49,700 Hotels & +6.7 Million Hotel Rooms


Our Coverage

Hotels & Hotel Rooms

+8.5K

+1.1M

+6.1K

+1.2M+650

+118K+760

+122K

+33K

+3.9M

+560

+147K

Hotels

Rooms


Census Global Picture

Branded vs. Unbranded rooms – July 2014

41%

59%

50%

50%

42%

58%

65%

35%

58%

42%

Branded

Unbranded

38%

62%


Global Picture

Pipeline % increase # of rooms

3%

41%

14%8%

15%

7%


Global picture Supply & Demand

North A

meric

a

Central &

South

Am

erica

Europe

Mid

dle E

ast

Africa

Asia

Austra

lia &

Oce

ania-2

0

2

4

6

8

10

Supply Demand

Supply & Demand % Change, July 2014 YTD

STR Global 2014 www.strglobal.comSTR Global 2014 www.strglobal.com

Global RevPAR Map

July 2014 YTD RevPAR % change, in Constant Currency USD, Europe in EUR

+7.7% +4.4%€ +5.5%

+1%

+6.3%-3.0%

+17.1%

+3.5%


Regional Performance


Spotlight Americas

Market performance – Occ %, ADR $ and RevPAR $, July 2014 YTD, CC$

Central America

Occ 59.2% -1.8%

ADR $ 123 +5.4%

RevPAR $ 73 +3.5%

North America

Occ 65.1% +3.4%

ADR $ 115 +4.2%

RevPAR $ 75 +7.7%

Caribbean

Occ 71.8% +0.2%

ADR $ 208 +8.9%

RevPAR $ 149 +9.2%

South America

Occ 61.1% -1.6%

ADR $ 144 +19.0%

RevPAR $ 88 +17.1%


Central & South America Room Supply/Demand % Change

12 months moving average Jan 2006 to July 2014

2006 2007 2008 2009 2010 2011 2012 2013 2014-10

-5

0

5

10

15

Supply % Chg Demand % Chg


Central & South America Occ/ADR % Change

12 month moving average Jan 2006 to July 2014, in USD

2006 2007 2008 2009 2010 2011 2012 2013 2014-15

-10

-5

0

5

10

15

20

25

Occ % Chg ADR % Chg


Central & South America Classes Occ and ADR

Luxury Upper Upscale Upscale Upper Midscale0%

10%

20%

30%

40%

50%

60%

70%

80%

$0

$50

$100

$150

$200

$250

$300

$350

$400

Occ 13 Occ 14 ADR 13 ADR 14+21.9%

+0.7%+8.8%

-6.2%

-2.0% -2.8%-3.5% +3.4%

July 2013 & 2014 YTD, in USD


Central / South Americas Countries Occ, ADR

Argentina Brazil Chile Colombia Costa Rica

Ecuador Peru Uruguay Venezuela40%

45%

50%

55%

60%

65%

70%

$0

$100

$200

$300

$400

$500

$600

Occupancy ADR

July 2014 YTD, in USD


Central / South America (excl. Venezuela) Countries Occ, ADR

Argentina Brazil Chile Colombia Costa Rica Ecuador Peru Uruguay40%

45%

50%

55%

60%

65%

70%

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Occupancy ADR



Central / South America Countries Occ, ADR % Chg

July 2014 YTD, in local currency

Argentin

a

Brazil

Chile

Colom

bia

Costa R

ica

Ecuador

Peru

Uruguay

Venezuela

-30%

-10%

10%

30%

50%

70%

90%

110%

130%Occupancy ADR


Central / South America (Excl. Venezuela) Countries Occ, ADR % Chg


Argentina Brazil Chile Colombia Costa Rica

Ecuador Peru Uruguay-10%

0%

10%

20%

30%

40%

50%Occupancy ADR


Central & South America Markets Occ, ADR

40%

50%

60%

70%

80%

$0

$50

$100

$150

$200

$250

$300

Occupancy ADR



Central & South America Markets Occ, ADR % Chg


Bogota

Buenos Aire

s City

Cusco

Lima

Manaus

Mendoza

Monte

video

Panama C

ity

Rio d

e Janeiro

San Jose

San Salva

dor

Santiago

Sao Paulo

City

-10%

0%

10%

20%

30%

40%

50%

60%

Occupancy ADR


Chilean Performance


Santiago Room Supply/Demand % Change

12 months moving average Jan 2006 to July 2014

2006 2007 2008 2009 2010 2011 2012 2013 2014-20

-15

-10

-5

0

5

10

15

20

25

Supply % Chg Demand % Chg


Santiago Occ/ADR % Change

12 month moving average Jan 2006 to July 2014, in CLP

2006 2007 2008 2009 2010 2011 2012 2013 2014-30

-20

-10

0

10

20

30

40

Occ % Chg ADR % Chg


Santiago Performance Jan 13 – Jul 14 Occ, ADR

Jan 13

Feb 13

Mar 13

Apr 13

May 13

Jun 13

Jul 13

Aug 13

Sep 13

Oct 13

Nov 13

Dec 13

Jan 14

Feb 14

Mar 14

Apr 14

May 14

Jun 14

Jul 14

50%

60%

70%

80%

CLP 70,000

CLP 75,000

CLP 80,000

CLP 85,000

CLP 90,000

CLP 95,000

CLP 100,000

CLP 105,000

CLP 110,000

CLP 115,000

CLP 120,000

Occupancy ADR

July 2014 YTD, in CLP


Regional Chile Performance Jan 13 – Jul 14 Occ, ADR

Jan 13

Feb 13

Mar 13

Apr 13

May 13

Jun 13

Jul 13

Aug 13

Sep 13

Oct 13

Nov 13

Dec 13

Jan 14

Feb 14

Mar 14

Apr 14

May 14

Jun 14

Jul 14

40%

50%

60%

70%

80%

CLP 50,000

CLP 55,000

CLP 60,000

CLP 65,000

CLP 70,000

CLP 75,000

CLP 80,000

CLP 85,000

CLP 90,000

Occupancy ADR

July 2014 YTD, in CLP


Jan

13

Mar

13

May

13

Jul 1

3

Sep 1

3

Nov 1

3

Jan

14

Mar

14

May

14

Jul 1

4 0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Occ WDOcc WE

How is the weekend business in Santiago? Occupancy, local currency, weekday vs. weekend performance


60,000.00

70,000.00

80,000.00

90,000.00

100,000.00

110,000.00

120,000.00 ADR WDADR WE

How is the weekend business in Santiago? ADR, local currency, weekday vs. weekend performance


Pipeline


Central & South America Pipeline by Chain Scale

As of August 01, 2014, Pipeline by Room Count

6%

9%

24%

22%

22%

11%

6%

Luxury Chains

Upper Upscale Chains

Upscale Chains

Upper Midscale Chains

Midscale Chains

Economy Chains

Unaffiliated


Central & South America – Pipeline, Top 10

Bolivia

Uruguay

Paraguay

Peru

Costa Rica

Chile

Argentina

Panama

Colombia

Brazil

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

Pipeline

Pipeline

# Rooms, as of August 01, 2014


Central & South America – Pipeline, Top 10

Bolivia

Uruguay

Paraguay

Peru

Costa Rica

Chile

Argentina

Panama

Colombia

Brazil

0 1,000 2,000 3,000 4,000 5,000 6,000

Pipeline

Pipeline

# Rooms, as of August 01, 2014 (excl. Brazil)


STR Global

www.strglobal.comYou can follow us on LinkedIn,Twitter, Facebook

STR Global, Ltd is the exclusive owner of all rights in this presentation and its content. Reproduction of all or a portion of this presentation for any purpose without prior approval of STR Global is strictly prohibited.

This presentation is based on information compiled by STR Global Ltd. No strategic or marketing recommendations or advice are intended or implied.

Importance of Hotel Data

Thomas Emanuel

0044 (0) 20 7922 1949

str global 2014 importance of hotel data congreso nacional de hoteleros de chile thomas emanuel...

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