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Market Class Collapsed

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If a single class segment is insufficient for reporting, classes are collapsed into the following segments:

 

Luxury and Upper Upscale

Upscale and Midscale w/F & B

Midscale w/o F & B and Economy

 

Market Price Segments (U.S. Only)

The five categories of a metro STR market which are defined by actual or estimated average room rate. The five price categories are shown below:

 

Luxury - top 15% average room rates

Upscale - next 15% average room rates

Mid-Price - middle 30% average room rates

Economy - next 20% average room rates

Budget - lowest 20% average room rates

 

In rural or non-metro STR markets, the luxury and upscale segments collapse into the upscale and form four price segment categories:

 

Upscale - top 30% average room rates

Mid-Price - next 30% average room rates

Economy - next 20% average room rates

Budget - lowest 20% average room rates

 

Market Scale

Hotels located in the same market and classified in the same chain scale segment as the subject hotel are grouped with the subject hotel into one of seven Market Scale groups:

 

Luxury

Upper Upscale

Upscale

Midscale with F & B

Midscale without F & B

Economy

Independent

 

Market Scale Collapsed

Hotels located in the same market and classified in the same chain scale segment as the subject hotel. There are two market scale (collapsed) groups:

 

Upscale (includes Luxury, Upper Upscale, Upscale and Independent)

Midscale/Economy (includes Midscale with F & B, Midscale without F & B and Economy)

 

Market Tract

See Submarket

 

Market Tract Scale

See Submarket Scale

 

O

OCC (Penetration) Index

An index designed to measure a hotel's share of the segment's (comp set, market, tract, etc.) demand (demand = rooms sold).

 

(Hotel Occupancy / Segment Occupancy) x 100 = Occupancy Index

 

Fair share can be thought of as the subject hotel's 'piece of the pie' in the market. For example, if there are 1,000 rooms in the competitive set and the subject hotel has 100 rooms, the subject hotel's fair share is 10.00 percent. If the subject hotel accounts for 10.00 percent of the room nights generated within the competitive set in a given time period, the subject hotel's actual share equals its fair share, giving it an occupancy index of 100 percent.

 

Occupancy (Occ)

Occupancy is the percentage of available rooms that were sold during a specified period of time. Occupancy is calculated by dividing the number of rooms sold by rooms available.

 

Occupancy = Rooms Sold / Rooms Available

 


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