How to calculate adr index

CHIA PRACITES EXSAM

1. Most of the entities below are classified as “Parent Companies”. Which one is a “Chain” that is a member of a Larger Parent Company?

A) Accor

B) Holiday Inn

C) Choice

D) Starwood

2. Which one of the following statements about management companies is accurate?

A) Parent companies will always use a management company to manage their corporate owned hotels.

B) A management company can only manage hotels for a single chain.

C) A management company and an asset management company provide the same service.

D) A management company has a contract where it receives payment and/or some portion of profits.

3. Which one of the following statements regarding the Scale and Class categories is accurate?

A) STAR Reports compare the subject hotel to the competitive set, not to Scale or Class groups.

B) The Class category is used to combine independent hotels with chain hotels at similar ADR levels.

C) There are 6 Scale groups and 7 Class groups.

D) The Class category is most popular in the US and the Scale category is most popular outside the US.

4. Which one of the following statements regarding Scale and Class groups and a single chain is accurate?

A) It is possible for the Holiday Inn Chain to switch from one Scale group to another in the middle of the year if their average ADR changes dramatically.

B) A holiday Inn hotel in the US can be one Scale group and a Holiday Inn hotel in Germany can be in a different Scale group

C) A holiday Inn hotel in the US can be one Class group and a Holiday Inn hotel in Germany can be in a different Class group

D) A Holiday Inn Hotel will always be in the same Scale and Class groups in every country throughout the world.

5. Which one of the following is a non-geographic category used by the hotel industry?

A) Extended Stay

B) Location

C) Scale

D) All of the above categories are used

6. Which one of the following is NOT a good reason for a hotel to have an additional competitive set?

A) The hotel has one set that it can easily beat and another that is a realistic target.

B) A hotel is located between two cities so they have one competitive set related to one city and another related to the second city.

C) The hotel has a local competitive set based upon geography and another based upon a special feature or niche, i.e. waterpark, boutique, or conference.

D) The hotel has different sets for weekday/Weekend or group. Transient mix

7.

8. Compare

9. Which one of the following statements regarding the importance of the RevPAR metric is NOT accurate?

A) RevPAR is important since it is a combination of Occupancy and ADR.

B) REvPAR is calculated by dividing Room Revenue by Demand.

C) If a hotel has a very high Occupancy with a low ADR or a very high ADR with a low occupancy, the RevPAR would not reflect that unusual situation.

D) A general manager of a hotel might receive a bonus related to the RevPAR metric.

10. Which one of the following is NOT an accurate statement related to Full Availability?

A) The Full Availability methodologies are in place to ensure the most accurate and consistent comparisons possible.

B) When a hotel reports a Supply number it should be the number of rooms in the hotel times the number of days in the time period, e.g..: month.

C) If a hotel converts a guest room to another function, for example a meeting room, it cannot change their number of rooms until January of the next year.

D) When competitive set numbers are calculated, the methodologies assume full availability.

11. Which one of the following is an accurate statement regarding the methodology used to calculate KPIs for multiple time periods?

A) KPIs for multiple time periods are derived by aggregating the raw data for each time period then applying the KPI formulas to the aggregated raw data.

B) Companies can decide on which methodology to use.

C) KPIs for multiple time periods are derived by calculating the KPI for each individual time period, then adding up the KPIs and dividing by the number of time periods to obtain an average KPI.

D) The methodology differs when it comes to monthly and daily data.

12. If your hotels has an Occupancy Percent Change of 10% and an ADR Percent Change of -10%, the REvPAR Percent Change will be:

A) Close to 20

B) Close to 0

C) Close to -20

D) There is no way to tell.

13. On the last week during a month, you check the MTD number for your competitive set on your weekly STAR report. Weeks later when the Monthly STAR Report arrives, you notice that the number is different than what you expected. Which one of the following is NOT a possible explanation for the change?

A) The hotel may specify one competitive set for their Weekly STAR Report and a different competitive set for their Monthly STAR Report.

B) The daily data for one or more of the hotels in the comp set may not add up to the monthly data. Sometimes the daily data for a hotel may not add up to the monthly data to things like adjustments.

C) One or more of the hotels in your competitive set may have submitted a revision to their daily data between the time of your last Weekly report and the Monthly report.

D) The subject hotel may have one or more hotels in their comp set that reports monthly data, but does not reports daily data.

14. Which one of the following is NOT an accurate statement regarding comparable time periods?

A) Weekend days in a month this year are compared to weekend days in the same month last year regardless of the dates.

B) Monthly numbers this year are compared to the same month last year.

C) The months included in the Year-to –Date data this year are compared to the same months included in the Year-to-Date period last year.

D) With daily data, the date this year is always compared to the same date last year.

Use the spreadsheet below to answer question 15-16.

A

B

C

D

E

F

G

1

2013

Supply

Demand

Revenue

Occupancy

ADR

RevPAR

2

Jan

6200

3875

697500

3

Feb

5600

3360

590016

4

Mar

6200

4030

719758

5

April

6000

3804

698034

15. The occupancy for February (E3) is _______.

A) 50%

B) 55%

C) 60%

D) 65%

16. The ADR for March (F4) is ______.

A) $173.21

B) 175.30

C) $178.60

D) $183.50

Use the spread sheet below to answer questions 17-18,

A

B

C

D

E

F

G

1

2013

Supply

Demand

Revenue

Occupancy

ADR

RevPAR

2

Jan

6200

3875

697500

3

Feb

5600

3360

590016

4

Mar

6200

4030

719758

5

Mar YTD

17. The March YTD Occupancy (E5) is_______.

A) 60%

B) 62.6%

C) 72.5%

D) 75%

18. The March YTD RevPAR (G5) is_______.

A) $111.52

B) $137.17

C) $148.50

D) $155.48

Use the spreadsheet below to answer question 19-20

A

B

C

D

E

F

G

1

2013

Occupancy

This Year

ADR

This Year

Occupancy

Last Year

ADR

Last Year

Occupancy

% Change

ADR

% Change

2

Jan

60.5

$175.52

60.0

$172.70

3

Feb

62.7

$170.10

61.2

$168.44

4

Mar

63.4

$176.80

64.5

$177.30

5

April

63.8

$180.63

62.7

$179.83

19. The ADR percent change for January (G2) is _____.

A) 0.0% 0,6 5 8

B) 1.0%

C) 1.6%

D) 2.5%

20. The occupancy percent change for March (F4) _______

A) 1.7%

B) 1.1%

C) -1.1%

D) -1.7%

Use the table to answer the questions below.

A

B

C

D

E

F

G

1

2

3

4

5

6

21. The competitive set Occupancy for April is______

A) 54.97%

B) 63.7%

C) 61.9%

D) 72.7%

22. The competitive set RevPAR (G6) for Apr is________.

A) $100.93

B) 61.7%

C) 61.9%

D) 72.7%

A

B

C

D

E

F

G

1

2013

Occupancy index this year

ADR index this year

Occupancy index last year

ADR index last year

Occupancy index change %

ADR index change %

2

Jan

102,4

98,4

101,7

101,3

3

Feb

101,8

99,7

105,6

99,9

4

Mar

103,6

97,3

103,9

96,4

5

April

100,2

96,6

98,4

103,7

6

23. The occupancy Index % change for February (F3) is_______.

A) 3.8%

B) 3.6%

C) -3.6%

D) -3.8%

24. The ADR Index % change for April (G5) is _________?

A) -5.3%

B) -6.6%

C) -6.8%

D) -7.1%

25. Which one of the following statements regarding Index numbers and Index Percent Changes is true?

A) Index Percent Change numbers are derived using the Index number this year, the Index number last year and the standard PERCENT Change formula.

B) The STAR Reports will show index number for occupancy, ADR, and RevPAR, comparing your performance to the performance of the competitive set.

C) The Index Percent Change number are important since they show relative improvement of the subject compared to the competitive set.

D) All of the above statements are true.

26. Which of the following statement is accurate regarding sufficiency as it relates to competitive set data.

A) If you have five hotels in your compititeve set and only for reported for a month the monthly compititve set number would not be sufficient.

B) When it comes to apercent change number for a single month one of the current month number ethier the (this year) or the (last year) number must be sufficient.

C) The sufficinenty rules are implaies to protect the confidentiality of the data.

D) If the competitive set number for a single month is not sufficient it will still be displayed on the start report.

27. Suppose you are looking at the Number of Rooms Available for a market at the beginning of a time period and compare that to the Number of Rooms Available for the market at the end of a time period. Which of the following would NOT factor into the supply difference between the starting date and the ending date?

A) Hotels that closed within the market.

B) Room addition or room drops to hotels within the market.

C) Hotels that converted from one chain to another chain within the market.

D) New hotels that opened within the market.

28. Which one of the following is not an accurate statement regarding the STAR reports?

A) STAR reports display the following types of data: KPIs (Occupancy, ADR, and RevPAR), Percent Changes, Index numbers, and Profit and Loss numbers.

B) The STAR Report compares the subject hotel to the competitive set and one or more industry segments.

C) STAR reports will contain additional pages if the subject hotel has more than one competitive set, submits Segmentation (Group, Contract, Transient) data, or submits Additional Revenue data.

D) STAR Reports are generated on a monthly and weekly basis.

29. Which one of the following is an accurate statement regarding Segmentation and Additional Revenue data on the STAR Reports?

A) Group Rooms and Revenue are defined as business sold in blocks of 25 rooms or more.

B) The most common example of Contract Rooms and Revenue is airline crew business.

C) The majority of Economy and Midscale chain hotels submit Segmentation and/or Additional Revenue data.

D) Additional Revenue categories include “Telecommunications” and “Rentals” in addition to Room Revenue.

Use the sample “At a Glance” page from your Monthly STAR Report to answer the questions that follows.

August 2013

Occupancy %

ADR

RevPAR

My Prop

Comp set

Index

(MPI)

My

Prop

Comp

set

Index

(ARI)

My

Prop

Comp

set

Index

(RGI)

Current

Month

73.7

66.2

111.4

100.55

124.93

80.5

74.08

82.65

89. 6

Year To

Date

78.9

79.6

99.1

140.33

176.49

79.5

110.70

140.45

78.8

Running 3 Month

74.1

73.6

100.7

104.40

131.95

79.1

77.38

97.09

79.7

Running 12 Month

72.3

74.1

97.5

136.30

171.34

79.6

98.51

127.04

77.5

30. Based on the information above, which one of the following statements regarding the performance of your hotel is accurate?

A) Your Occupancy Index has surpassed 100 during two of the four different time periods.

B) Your REvPAR index has remained in the 70s for all four of the different time periods.

C) Your ADR index has varied dramatically during the four different time periods.

D) Your Current Month ADR was almost exactly the same as the Competitive Set’s ADR.

31. Which one of the following questions can be answered by checking the Response tab of the STAR Report?

A) Hotels in your competitive set that recently completed a renovation?

B) Have new hotels opened in your market?

C) Were there hotels in your competitive set that did not submit monthly data?

D) Were there any hotels in your competitive set that had a change in ownership?

32. You take over a Manger of a hotel where your YTD occupancy index is 105 and your YTD ADR index is 105 you star to analize the performance of your hotel. What would not be part of your plan?

A) Compare the compitive set data to the industry data and check to be sure that your comietive set is an accurate comparable group.

B) Take a look at the day of week data to see if there are specific days where there are opproutintes for improvement

C) See if segmntation data is available to see how your group and transient numbers compare

D) All of the above would be important to analayze

Three months ago, you took over as the General Manger for a hotel whose performance has been struggling. Use the sample excerpt from the “Competitive set” Page of your Monthly STAR Report to answer questions 33-35.

Occupancy (%)

Year To date

Apr

May

Jun

Jul

Aug

2011

2012

2013

My property

78.9

70.2

67.4

81.1

73.7

68.7

70.9

78.9

Competitive Set

83.1

71.3

74.5

80.1

66.2

69.6

73.6

79.6

Index(MPI)

94.9

98.4

90.4

101.2

111.4

98.7

96.4

99.1

Rank

4 of 6

4 of 6

5 of 6

4 of 6

3 of 6

3 0f 6

4 of 6

5 of 6

%Chg

My property

4.3

2.1

19.0

9.0

21.0

-1.2

3.2

11.2

Competitive Set

-0.7

1.4

8.8

11.2

12.6

6.2

5.7

8.2

Index (MPI)

5.1

0.7

9.4

-2.0

7.4

-7.0

-2.3

2.8

Rank

2 of 6

4 of 6

2 0f 6

4 of 6

2 of 6

5 of 6

5 of 6

2 of 6

33. Based upon the graph above, which of the following statements best describes the historic performance of your hotel during the prior 18 months?

A) Your occupancy, ADR, and RevPAR have always been below the competitive set average.

B) Your occupancy has generally been above the competitive set average .However, your ADR and therefore your RevPAR is just slightly below the competitive set average.

C) Both your occupancy and your ADR have generally been below the competitive set average; however there are months where both the occupancy and the ADR have surpassed the competitive set average.

D) Although your occupancy has generally been below the competitive set average, there have been months where the occupancy surpassed the competitive set. However, your ADR and therefore your RevPAR has consistently been well below the competitive set average.

34. Based on the graph above, which of the following statements best describes the results from the strategy that you have implemented over the last three months?

A) Focus on Occupancy. Try to increase Occupancy significantly and that will have a positive effect on RevPAR. Keep ADR consistent, but do not let it drop .Later, you can increase ADR.

B) Lower ADR significantly and try to increase Occupancy. Then later you can increase rates.

C) Focus on ADR. Increase rate significantly and therefore increase REvPAR. Later you can increase Occupancy.

D) Focus on Occupancy and ADR simultaneously. Try to increase both significantly at the same time.

35. Based upon the table above, which one of the following statements regarding the performance of your hotel is accurate?

A) Your hotel has achieved a positive Occupancy Index Percent Change for the last three months.

B) In August, your hotel had the lowest Occupancy Index number over the last 18 months.

C) Your hotel had a higher Occupancy Percent Change number than your Competitive Set four of the last five months.

D) In August, your hotel had the 2nd highest Occupancy value and the 3rd highest Occupancy Percent Change.

Use the sample “Day of Week and Weekday/Weekend Report” page from your Monthly STAR Report to answer the following question.

Average Daily Rate

My property

Competitive set

Index (ARI)

Weekday/Weekend

Weekday

Current Month

99.06

-2.8

123.59

-2.0

80.2

-0.7

(Sun-Thu)

Year to date

138.63

5.5

174.56

-3.1

79.4

8.9

Running 3 Month

102.85

1.1

130.05

-2.3

79.1

3.5

Running 12 Month

134.29

8.7

169.41

-2.9

79.3

11.9

Weekend

(Fri-sat)

Current Month

103.18

1.7

127.64

-1.7

80.8

3.4

Year to Date

143.73

12.2

180.81

1.9

79.5

10.1

Running 3 Months

107.16

2.2

135.78

0.5

78.9

1.7

Running 12 Months

140.00

12.7

175.40

2.2

79.8

10.3

Total

Current Month

100.55

-1.2

124.93

-1.9

80.5

0.7

Year To Date

140.33

7.7

176.49

-1.6

79.5

9.5

Running 3 Month

104.40

1.5

131.95

-1.4

79.1

2.9

Running 12 Month

136.30

10.1

171.34

-1.3

79.6

11.5

36. Based on the information provided above, which one of the following is an accurate statement?

A) The Weekend ADR Percent Changes for your hotel are consistently higher than your competitive set.

B) For the total week, the current month and Running 3-month ADR values for both your hotel and the competitive set are greater than the YTD and Running 12-month ADRs.

C) The Weekday ADRs for both your hotel and the competitive set are consistently above the Weekend ADRs for all time periods.

D) Weekday ADRs this year for the competitive set are increasing in all four time periods compared to last year.

table

37. Based on the information provided above, which one of the following is an accurate statement regarding August Segmentation Occupancy performance

A) Your Transient Occupancy decreased significantly this year over last year.

B) Your hotel’s Transient and Contract Occupancy were lower than the competitive set average.

C) Your Group Occupancy decreased significantly this year over last year.

D) Your Contract Occupancy Percent Change was lower than the competitive sets.

38. Based on the information provided above, which one of the following is an accurate statement regarding August ADR performance?

A) The Contract ADR Percent Changes for your hotel and for the competitive set were very similar.

B) Your Contract ADR was lower than the competitive set average.

C) The Transient and Group ADR Percent Changes for your hotel and for the competitive set were all negative.

D) Your hotel’s Transient ADR is significantly higher than the competitive set average.

39. Which one of the following is an accurate statement regarding the Weekly STAR Reports?

A) If a hotel has additional competitive set or submits Segmentation (Group/Transient) data, the Weekly STAR report will not include additional pages.

B) Weekly STAR Reports include Year –to-Date data.

C) Weekly “Perspective” pages display 28 days of daily data and graph 4 weeks of weekly data.

D) There are separate Weekly Perspective pages for Occupancy, ADR, and RevPAR.

Sunday

Monday

Friday

Saturday

Total

%Chg

%Chg

%Chg

%Chg

%Chg

Occupancy

My property

45.2%

-4.2

29.9%

-15.6

21.6%

-7.2

24.4%

-19.6

23.5

16.9

Comp Set

42.3%

5.7

54.5%

55.3

62.8%

16.8

64.0%

25.9

49.9

33.5

Index(MPI)

106.0

-9.4

54.8%

-46.3

34.6%

-20.5

37.6%

-36.1

47.0

-37.9

ADR

My property

67.65

-2.6

103.66%

-5.6

73.36%

2.9

70.21

1.4

84.54

-0.2

Comp set

85.86

-3.6

94.49%

-20,7

86.66

-0.4

79.57

6 or8.4

64.71

-9.0

Index (ARI)

102.1

1.1

109.9

19.1

84.4

3.3

66.2

8.3

99.9

9.7

RevPAR

My property

39.61

-6.8

31.03

-21.2

16.01

-4.5

17.11

-18.4

19.58

-17.1

Comp set

36.33

2.2

51.46

23.1

54.52

16.3

61.60

17.9

42.35

21.7

Index(RGI)

109.0

-8.3

60.3

-36.0

29.4

-17.9

33.2

-30.8

47.0

-31.9

40. Based on the information above, which of the following most likely cause your hotel’s low RevPAR index number for the week?

A) Your ADR general is very weak.

B) The competitive set’s ADR in general is very strong.

C) Sunday performance is weak.

D) Your Occupancy in general is weak compared to the competitive set.

41. Which of the following is a rule related to requesting Trend report(s)?

A) A single hotel may account for maximum of 40 percent in the U.S. or 50 percent outside the U.S. of the participating room supply.

B) If you request multiple Trend reports, the hotels you have selected must differ by two or more participating hotels on subsequent Trend requests.

C) You must select four or more participating hotels.

D) All of the above are rules related to requesting a Trend report.

42. What is the best explanation of why Twelve Month Moving average data is useful on a Trend Reports?

A) By including Twelve Month Moving average data you have the opportunity to see additional industry segments.

B) The Twelve Month Moving Average data removes the radical peak and trough (high and low) year over year changes found in monthly data and it is great for graphing performance over time.

C) The Twelve Month Moving Average data includes other KPIs not shown with monthly performance data.

D) There isn’t a good reason to include Twelve Month Moving Average data in a Trend report.

43. Which one of the following in NOT a good reason to include daily data on a Trend reports?

A) To compare performance on holidays from one year to the next

B) To study Day of Week performance differences over a long period of time.

C) To analyze special events and their impact upon daily performance

D) To determine the identity of new hotels that opened in market place over time.

Use the sample “Classic” page from a Trend to answer questions 44-45.

Data

Occupancy

ADR

RevPAR

This year

%Chg

This Year

% Chg

This Year

%chg

Jan 12

46.2

-8.7

88.55

-4.7

40.92

-13.0

Feb 12

51.955.0

-13.3

93.43

-4.0

48.52

-16.8

Mar 12

55.0

-14.0

92.14

-3.6

50.70

-17.1

April 12

56.4

-15.6

93.34

-6.2

52.65

-20.8

May 12

54.4

-9.3

90.85

-4.3

49.40

-13.2

Jun 12

63.0

-8.9

93.97

-3.9

59.17

-12.5

Jul 12

60.1

-9.6

85.78

-8.4

51.56

-17.2

Aug 12

52.3

-13.7

85.39

-5.9

44.66

-18.8

Sept 12

54.2

-4.8

88.28

-7.2

47.84

-11.7

Oct 12

59.5

-5.1

92.90

-7.1

55.28

-11.8

Nov 12

53.3

-5.3

90.08

-7.5

48.06

-12.4

Dec 12

47.2

-0.7

87.91

-5.0

41.50

-5.7

Sep YTD 2012

54.9

-10.9

90.19

-5.4

49.47

-15.8

Total 2012

54.5

-9.3

90.27

-5.7

49.17

-14.5

Jan 13

43.0

-6.9

84.36

-4.7

36.31

-11.3

Feb 13

53.0

2.0

86.72

-7.2

45.93

-5.4

Mar 13

60.5

9.9

91.61

-0.6

55.41

9.3

Apr 13

58.7

4.1

90.72

-2.8

53.29

1.2

May 13

67.8

24.6

82.90

-8.7

56.17

13.7

Jun 13

68.8

9.3

88.88

-5.4

61.15

3.3

Jul 13

67.8

12.8

83.04

-3.2

56.33

9.2

Aug 13

57.3

9.6

80.39

-5.8

46.10

3.2

Sept 13

60.0

10.7

85.10

-3.6

51.04

6.7

Sep YTD 2013

59.5

8.5

86.05

-4.6

51.19

3.5

44. Based on the information above, which one of the following is an accurate statement?

A) The ADR in every month of 2012 was greater than the same months in 2011.

B) The occupancy for the year-to date period ending September 2012 is up from the same period in 2011.

C) The RevPAR for the first two months of 2013 was down from the same two periods in 2012.

D) The occupancy in very month of 2013 was less than the same months in 2012.

45. Which one of the following can be determined from the 2013 monthly percent changes presented above?

A) Both the occupancy and the ADR improved year-over-year.

B) The 2013 percent changes were very similar to the 2012 percent changes

C) The occupancy and the ADR year-over-year changes balanced each other out, yielding no RevPAR change.

D) The occupancy improved year-over-year, while the ADR declined.

46. Which one of the following is NOT an accurate statement regarding the data displayed on a Pipeline Report?

A) A feasibility study would often include Pipeline information.

B) Pipeline Reports show number of properties and rooms under construction and in planning by Scale and Chain.

C) Pipeline Reports show hotel performance information (Occupancy, ADR, RevPAR).

D) Pipeline Reports show information about Supply changes in an area over time

Use the sample “Supply Summary” page from a Pipeline Reports to answer question 47-48

Rooms

Historic Supply

Pipeline Projects

Sep-08

Sep-09

Sep-10

Sep-11

Sep-12

Sep-13

In Constr.

Final Planning

Planning

Pre Planning

Luxury

462

462

462

462

462

462

410

Upper Upscale

7654

7654

7654

7937

7937

5056

100

Upscale

2823

2823

2934

3329

3,904

4,121

350

314

120

Upper Midscale

3162

2887

3075

3099

3,034

3,034

310

Midscale

7372

7315

7790

8098

8,362

8,511

344

63

489

83

Economy

7212

7068

7456

7350

7,379

7,378

Independent

4338

4541

3953

4162

4,333

4,333

200

Total

33,023

32,750

33,324

34 437

35,411

32,895

2,113

613

47. Based on the information above, which one of the following is an accurate statement regarding Supply growth over the last 5 years?

A) The Upper Upscale group experienced a significant decrease between 2012 and 2013.

B) The Upper Midscale group experienced a small increase in Supply.

C) The Economy Scale experienced no Supply growth.

D) The Luxury Scale group experienced a significant decrease in Supply.

48. Based on the information above, which two chain scales will probably experience the largest Supply growth in near future?

A) Upper Midscale and Midscale

B) Luxury and Independent

C) Upscale and Midscale

D) Upper Upscale and Midscale

49. HOST and profitability Reports include all but this type of Profit and Loss account?

A) Revenues

B) Expenses

C) Profit

D) Assets

50. What metrics do HOST and Profitably Reports display?

A) Amount per Occupied Room

B) Ratio to Sales

C) Amount per Available Room

D) All of the above

ACR Index Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 70 76 67 68 77 77 76 76 76 86 80 80 78 76 76 67 74 80 RevPAR Index Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 86 86 96 77 96 96 84 96 86 96 98 100 94 95 96 86 96 116 Occupancy index Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 66 75 67 56 77 77 66 76 66 86 80 80 76 74 76 66 70 76