Performance & revenue
STR report
Also written: STAR report
What STR report means
A standardized monthly, weekly, or daily benchmarking tool generated by Smith Travel Research that compares a hotel's performance metrics—specifically Occupancy, ADR, and RevPAR—against an aggregated competitive set of directly competing properties.
Formula
MPI = (Hotel Occupancy / Comp Set Occupancy) × 100
How it is used
Operators and revenue managers use the report to determine market share and evaluate pricing strategy effectiveness. Achieving an index score above 100 indicates outperforming the market average, while scores below 100 trigger operational adjustments. Investors and lenders require these reports during asset acquisition, refinancing, or performance reviews to verify market positioning and evaluate management competence.
Worked example
A hotel achieves an ADR of $180 while its competitive set averages $150. Its Average Rate Index (ARI) is ($180 / $150) × 100 = 120, demonstrating a 20% pricing premium over the local market.
Common mistake
Selecting an improper or overly weak competitive set artificially inflates performance indices, masking underlying operational failure.