CHIA hotel math fundamentals

index percent change

(index this year - index last year) / index last year x 100

percent change

(this year - last year) / last year x 100

- Sunday through Saturday - Sunday through Thursday - Friday and Saturday

- a week is considered _________ through _________ - a weekday is considered _________ through _________ - a weekend is considered _________ through _________

- up - down

- if supply remains the same and demand goes up, then occupancy will go ________ - if supply goes and and demand remains the same, then occupancy will go _______

month-to-date (MTD)

1st through current day of the month (daily time period)

sufficiency

whether or not enough of the hotels in the comp set have participated/submitted data

supply (rooms available)

rooms in a hotel multiplied by the days

RevPAR percent change

roughly the combination of occupancy and ADR percent change

current week

seven days starting Sunday and ending Saturday (daily time period)

index

subject value / comp set value x 100

full availability

supply number is the number of rooms in the property times the days in the month

running 28-day

the current day plus the prior 27 (daily time period)

economic conditions, calendar holidays, special events, and hotel related situations

what 4 things are taken into consideration when analyzing percent changes?

average room rate for each hotel / average room rate total c. 1.7%

Based on the information above, the ADR Index percent change for November (I4) is _____. a. -3.4% b. -1.6% c. 1.7% d. 3.4%

c. 1.5%

Based on the information above, the Average Daily Rate percent change for April (G5) is ______. a. -2.1% b. 1.4% c. 1.5% d. 2.1%

c. 63.2%

Based on the information above, the March YTD Occupancy (E5) is _______ . a. 60.5% b. 62% c. 63.2% d. 65%

RevPAR for subject property / RevPAR for competitive set 103.90 / 88.51 = 117.4

Based on the information above, the RevPAR Index for November (J3) is ______. a. 85.2 b. 96.2 c. 117.4 d. 122.7

d. 16%

Based on the information above, the RevPAR Index percent change for November (J4) is ______. a. -16% b. -13.8 c. 14.3% d. 16%

total demand / total supply 15,801 / 21,762 = 72.6%

Based on the information above, the competitive set Occupancy (E6) for July is _____. a. 60.9% b. 61.9% c. 72.6% d. 74.3%

total revenue / total supply 2,609,090 / 21,762 = $119.89

Based on the information above, the competitive set RevPAR (G6) for July is _____. a. $119.89 b. $143.42 c. $155.16 d. $165.12

occupant % / occupancy market total 98.2% / 82.4% = 119.2

Based on the information above, the occupancy Index for November (H3) is _____. a. 83.9 b. 90.3 c. 104.6 d. 119.2

b. The exchange rate for each individual month, specifically the last day of that month, is used

How are exchange rates handled when it comes to multiple time periods (i.e YTD, running 3-month, or running 12-month) a. The exchange rate on the first day of the year is used for all months b. The exchange rate for each individual month, specifically the last day of that month, is used c. The exchange rate for each day is used d. The exchange rate for the last month is used

a. Supply decreases 5% and demand increase 10%

In which of the following situations will occupancy increase? a. Supply decreases 5% and demand increase 10% b. Supply increases 5% and demand decreases 5% c. Supply increases 10% and demand increases 5% d. None of these situations will result in an occupancy increase

year-to-date (YTD)

January through the current month (monthly time period)

c. Always based upon the aggregated raw data of each member of the competitive set.

Key Performance Indicators (KPI) for the Competitive Set (for example the average Occupancy) are: a. The comp set methodology can differs by hotel company. b. The comp set methodology differs inside and outside of North America. c. Always based upon the aggregated raw data of each member of the competitive set. d. Always based upon a straight average of the metrics, for example the Occupancies, of each member of the competitive set.

b. US

Modeled data is used in which country? a. UK b. US c. China d. All of the above

Oanda

STR obtains daily exchange rates for all currencies in the world from __________

local currency

STR requests that hotel companies and hotels submit their revenue data in __________

d. Uniform System of Accounts for the Lodging Industry

The definitions for Supply, Demand and Revenue used by STR and others in the lodging industry are taken from what source? a. Lodging Industry Accounting Fundamentals Guide b. Hotel Book Keeping for Dummies c. Modern Hotel Industry Accounting d. Uniform System of Accounts for the Lodging Industry

collapsing

when scale or class industry segments are not sufficient, they can be combined

a. New hotel openings, Hotel closings, Hotel room additions, and Hotel room drops

The number of Rooms Available in a total market can change over time due to what four factors? a. New hotel openings, Hotel closings, Hotel room additions, and Hotel room drops b. New hotel openings, Brand Conversions, Hotel room additions, and Hotel room drops c. New hotel openings, Hotel closings, Brand conversions, and Renovations d. Hotel closings, Brand conversions Hotel Room additions, and Hotel Room drops

a. The comp set average is calculated based upon the reporting hotels.

What happens when there is a non-reporting hotel in a competitive set? a. The comp set average is calculated based upon the reporting hotels. b. Prior year data for the non-reporting hotel is used. c. Modeled data is used for the non-reporting hotel. d. Market data is used for the non-reporting hotel.

c. Four

What is the minimum number of reporting hotels for an industry segment to be considered "sufficient"? a. Two b. Three c. Four d. Five

b. One months or longer

What is the period of time a hotel must close completely due to renovation in order to be considered a Close and Reopen? a. Two weeks or longer b. One months or longer c. Six months or longer d. Twelve months or longer

c. Modeled Data is derived by using actual data from reporting hotels to estimate performance for non-reporting hotels

When talking about U.S. Industry Data, which is an accurate explanation of "modeled data"? a. U.S Industry Data is based only on the actual data from reporting hotels. b. Modeled Data does not help compensate for the non-participating low-end independent hotels in the U.S. c. Modeled Data is derived by using actual data from reporting hotels to estimate performance for non-reporting hotels. d. Modeled Data does not help increase the accuracy of U.S. Industry data.

b. Your hotel has the 3rd highest ADR among the members of your competitive set

When you receive your STAR report you see that your ADR Rank of the current month is "3 of 7". What do you know? a. The ADR for your hotel is higher than the competitive set ADR b. Your hotel has the 3rd highest ADR among the members of your competitive set c. Your hotel had an ADR higher than 3 other members of your competitive set d. The ADR for your hotel was higher than the competitive set ADR for 3 of the last 7 months

b. The RevPAR index will be in the neighborhood of 100.

When you receive your STAR report your ADR index was 110 and your Occupancy index was 90. What do you know? a. The RevPAR index will be in the neighborhood of 85. b. The RevPAR index will be in the neighborhood of 100. c. The RevPAR index will be in the neighborhood of 105. d. The RevPAR index will be in the neighborhood of 115.

a. Your hotel will have a positive RevPAR Index Percent Change.

When you receive your STAR report, you see that your RevPAR index was 90 this year compared to 80 last year. What do you know for sure? a. Your hotel will have a positive RevPAR Index Percent Change. b. Your hotel would have a positive RevPAR Percent Change. c. Your hotel outperformed the comp set this year when it comes to RevPAR, but not last year. d. Your hotel outperformed the competitive set when it comes to RevPAR both years.

d. Your ADR was $10 higher than the average of all of the members of the competitive set .

When you receive your STAR report, your ADR for the month was $100 and the competitive set ADR was $90. What can you tell? a. You had the highest ADR of all of the members of the competitive set. b. Your RevPAR will be higher than the RevPAR of the competitive set. c. There was one hotel that had a higher ADR than you. d. Your ADR was $10 higher than the average of all of the members of the competitive set .

b. Daily and monthly only

Which is true regarding the type of performance data (Supply, Demand, Revenue) that STR receives? a. Daily only b. Daily and monthly only c. Daily, weekly, and monthly d. Daily, weekly, monthly and quarterly

c. The sufficiency rules are in place to protect the confidentiality of the data.

Which one of the following statements is accurate regarding "Sufficiency" as it related to competitive set data? a. If a competitive set is not sufficient for three consecutive months, you will no longer receive a STAR Report. b. Percent Change number for a single month will appear on the STAR report if either the "This Year" or "Last Year" data is sufficient. c. The sufficiency rules are in place to protect the confidentiality of the data. d. If a competitive set number for just a single month is not sufficient, it will still be displayed on the STAR Report.

b. It can be thought of as a combination of Occupancy and ADR.

Which statement is true regarding RevPAR? a. It is almost always higher than ADR. b. It can be thought of as a combination of Occupancy and ADR. c. It can be thought of as a combination of Supply and Demand. d. When a hotel or GM is evaluated, the RevPAR metric is rarely considered.

c. The majority of data is exported from the hotel company systems.

Which statement is true regarding raw data that is submitted to STR? a. There are limited error check programs. b. A small amount comes in the form of raw data files. c. The majority of data is exported from the hotel company systems. d. Most data is entered online.

b. Sunday thru Thursday

You receive your monthly STAR and find that it includes weekday and weekend performance, what days are included in "weekday"? a. Friday and Saturday b. Sunday thru Thursday c. Monday through Friday d. Sunday thru Saturday

running 12-month

current month plus the prior 11 (monthly time period)

running 3-month

current month plus the prior 2 (monthly time period)

the comparable day last year (not the same date)

daily percent changes compare the day this year to what?

occupancy %

demand / supply rooms sold / rooms available

revenue

generated from the sale of rooms, not including taxes or F&B , includes service charges not resort fees

the same month last year

monthly percent changes compare the month this year to what?

demand (rooms sold)

number of rooms sold, not including complimentary rooms or no shows

ADR $

revenue / demand

RevPAR $

revenue / supply