Choose hotels competing for the same stay occasions and customers, not simply the properties with the most attractive published rates. Document why each property belongs—and what makes it imperfect.
STR/CoStar’s methodology recognizes dimensions including location, class, property size and business mix in competitive analysis. Its RevPAR index compares the subject’s RevPAR with the aggregated comparison group, so the group’s construction matters to the interpretation. (costar.com)
Recommended comp-set audit
| Dimension | Question to answer |
|---|---|
| Micro-location | Would the same guest realistically substitute this hotel? |
| Demand | Are weekday business, leisure, wedding and group patterns similar? |
| Product | Are room quality, size, views and amenities comparable? |
| Service | Does the comparison require materially different staffing? |
| Distribution | Does loyalty or group sales create a different demand base? |
| Timing | Are both hotels operating normally in the measured period? |
Keep two lists when necessary:
- Operating comparables: relevant to current trading.
- Positioning references: useful for the proposed concept but not yet evidence of attainable performance.
Our recommended rule is to avoid letting a future renovation case borrow the rates of a superior hotel while retaining the staffing and capital costs of the existing property.
A public rate-shopping exercise can inform positioning. Do not treat it as a substitute for authorized achieved-revenue data.