CHIA Competitive Intelligence & Benchmarking 3

Question 1

A hotel's competitive set ADR is $150 and the hotel's own ADR is $165. What is the hotel's ARI?

Accepted Answer

110

Answer

90.9

Answer

115

Answer

165

Question 2

Why might a hotel manager dispute the composition of their STR competitive set?

Accepted Answer

To ensure the set accurately reflects properties competing for the same guests

Answer

To increase the number of properties and lower the comp set's average metrics

Answer

To include only luxury properties that make the hotel look underperfoming

Answer

To align the comp set with the hotel's brand family standards

Question 3

In STR benchmarking, what does a 'pipeline' report track?

Accepted Answer

Future room supply entering the market through new construction and conversions

Answer

The booking pace of group business for future dates

Answer

Revenue projections based on current booking pace

Answer

The sequence of revenue management decisions made by a hotel

Question 4

A market's RevPAR Index (comparing market RevPAR to a national baseline) is 115. What does this tell a hotel investor?

Accepted Answer

The market outperforms national averages by 15% on RevPAR

Answer

The market underperforms national averages by 15%

Answer

Hotels in the market charge 15% more than competitors in adjacent markets

Answer

The market's RevPAR has grown by 15% year over year

Question 5

Which factor would most likely cause a hotel's MPI to increase without any change in its own occupancy?

Accepted Answer

A competitor in the comp set closes for renovation, reducing comp set supply

Answer

The hotel raises its ADR significantly

Answer

The hotel adds a new food and beverage outlet

Answer

The hotel switches to a new property management system

Question 6

What is the primary limitation of using only RevPAR as a benchmarking metric?

Accepted Answer

RevPAR ignores ancillary revenues such as F&B, spa, and parking

Answer

RevPAR does not account for differences in hotel size

Answer

RevPAR cannot be compared across different geographic markets

Answer

RevPAR fluctuates too rapidly for meaningful trend analysis

Question 7

When interpreting year-over-year index changes, a hotel's RGI improves from 98 to 103. The most accurate conclusion is:

Accepted Answer

The hotel moved from underperforming to outperforming its competitive set

Answer

The hotel's RevPAR grew by 5%

Answer

The hotel's RevPAR is now $5 higher than the competitive set average

Answer

The competitive set's RevPAR declined by 5%