HM 480 CHIA FINAL UPDATED ACTUAL Exam Questions and
CORRECT Answers
What is Benchmarking? - (ANSWERS)-Property !@#$%%%%%
-Corporate %%%%%%
-Tourism Organizations
Competitive Sets - (ANSWERS)What?, Why?, Who?, When?, Rules
My hotel vs. The competition - (ANSWERS)each hotel has to compare themselves to the
competition
Benchmarking in the Hotel Industry - (ANSWERS)-compare performance to comp set
-compare performance to hotels in pre-defined industry segments near their hotel
(market/tract)
-can compare their own properties to variety of comparative groups of hotels to gauge
performance of their portfolio
-tourism orgs can also compare their local area to "comparable" markets
What is a Comp Set? - (ANSWERS)a group of hotels used primarily for comparison against
subject property for performance benchmarking purposes
-properties in a comp set are competitive in nature--> could be competing for the same guests
-Nittany Lion Inn will not compare to Roadway Inn because they are not going to have the same
type of guests
How are Comp Sets Used? - (ANSWERS)-compare to subject property for performance
benchmarking purposed
-aid sales and marketing team
-use in management contracts for performance requirements
-internal and external analysis
Why are Comp Sets Needed? - (ANSWERS)-the information is valuable
-started in 1980s
Aggregating - (ANSWERS)finding the averages based on the data from a group of hotels so that
each individual hotel is protected from exploitation of their specific data
-from a STAR report, can only see how everyone as a whole is doing
When are Comp Sets Created? - (ANSWERS)-by the time the hotel opens
-sometimes long before the hotel opens/while the hotel is under construction--> "under
construction" STAR report
Why would a hotel want to put together a comp set before they open? - (ANSWERS)want to
make sure their price point is good or maybe see if the hotel is even worth building
,HM 480 CHIA FINAL UPDATED ACTUAL Exam Questions and
CORRECT Answers
!@#$%%%%%
Who chooses the Comp Set? - (ANSWERS)-management company %%%%%%
-GM
-Chain Company
-Sales and Marketing Team
All might have different goals or agendas
Choosing the comp set/ setting chain standards - (ANSWERS)-including/excluding specific
chains
-including/excluding different properties of the same chain
-choosing properties within specific radial distance
-choosing properties within specific chain scales
4 P's - (ANSWERS)-Participation--> do they send STR their data?
-Proximity--> are competitors in the same town, state, region, country?
-Pricing--> competitors will have similar prices to your hotel
-Product--> competitors will generally be similar to your hotel with amenities and features
Participation - (ANSWERS)Monthly- usually default
Daily- most hotels submit info daily or each week
Segmentation-many submit rooms sold, revenue broken down by transient, group, contract
Additional Revenue- F&B and other revenue
Proximity - (ANSWERS)Distance- how many miles away?
Market/Tract (Submarket)- will help you identify hotels that are geographically close to the
subject hotel, can also look at city, zip code, county
Location- airport, downtown area, beach/resort area
Pricing - (ANSWERS)Scale- if a chain hotel
Class- help you to identify independent hotels
-can also be found on the Internet
Product - (ANSWERS)Number of rooms- should be similar to you
Open Date- around same age, different occ% for new vs. Old hotels
Hotel Type- Boutique, Extended Stay, Convention, etc.
Meeting Space- compare
Amenities- check (restaurant, spa, waterpark, etc.)
Rules to Creating a Comp Set - (ANSWERS)-Sufficiency--> in North America, comp sets MUST
include 3+ hotels in addition to yours, but encouraged to have 4+
-outside of North America, comp sets must include 4+ hotels in addition to theirs
, HM 480 CHIA FINAL UPDATED ACTUAL Exam Questions and
CORRECT Answers
!@#$%%%%%
%%%%%%
Rules : Percentage Checks - (ANSWERS)-No single property or chain can account for more than
40% of total participating room supply of a comp set
-No single company (Starwood) can account for more than 60% of the total participating room
supply of a comp set
Avg # of Properties in a Comp Set - (ANSWERS)Luxury- 5.91
Upper Upscale- 5.58
Upscale- 5.62
Upper Midscale- 5.52
Midscale- 5.51
Economy-5.60
Avg= 5.6
Reverse Comp Set - (ANSWERS)specific properties that name your hotel in their comp set
-possible to obtain members of this for your hotel from STR
When are Comp Sets Changed? - (ANSWERS)-changes in subject hotel (renovation,
conversion, new management or owner company, contract changes)
-changes in the market (new hotels open)
-strategic changes (repositioning, improving comp set strength)
-possible to change at any time, most people wait until the beginning of the year
-don't want to change too often, because then you won't be getting very good data
Rules to changing comp sets - (ANSWERS)-have to do so by a net change of 2+ properties (can
add two or remove two, add one remove one, add two drop one, drop two add one)
-if making a change with only 2 properties, both must be in a different chain, parent company,
and management company from the subject hotel
Exception: can add a brand new property which has been open LESS than 6 MONTHS OR a hotel
can remove a property from its comp set that has stopped participating after 3 months
(INACTIVE)
Additional Comp Sets - (ANSWERS)-pay extra for each comp set that you have
-when they change, can elect to keep the old for a period of time to provide perspective
Reasons for Additional Comp Sets - (ANSWERS)-local vs. Regional
-subject hotel is between two markets/cities
-aspirational
-focusing on different chains
-different set for special niche (water park, boutique)
CORRECT Answers
What is Benchmarking? - (ANSWERS)-Property !@#$%%%%%
-Corporate %%%%%%
-Tourism Organizations
Competitive Sets - (ANSWERS)What?, Why?, Who?, When?, Rules
My hotel vs. The competition - (ANSWERS)each hotel has to compare themselves to the
competition
Benchmarking in the Hotel Industry - (ANSWERS)-compare performance to comp set
-compare performance to hotels in pre-defined industry segments near their hotel
(market/tract)
-can compare their own properties to variety of comparative groups of hotels to gauge
performance of their portfolio
-tourism orgs can also compare their local area to "comparable" markets
What is a Comp Set? - (ANSWERS)a group of hotels used primarily for comparison against
subject property for performance benchmarking purposes
-properties in a comp set are competitive in nature--> could be competing for the same guests
-Nittany Lion Inn will not compare to Roadway Inn because they are not going to have the same
type of guests
How are Comp Sets Used? - (ANSWERS)-compare to subject property for performance
benchmarking purposed
-aid sales and marketing team
-use in management contracts for performance requirements
-internal and external analysis
Why are Comp Sets Needed? - (ANSWERS)-the information is valuable
-started in 1980s
Aggregating - (ANSWERS)finding the averages based on the data from a group of hotels so that
each individual hotel is protected from exploitation of their specific data
-from a STAR report, can only see how everyone as a whole is doing
When are Comp Sets Created? - (ANSWERS)-by the time the hotel opens
-sometimes long before the hotel opens/while the hotel is under construction--> "under
construction" STAR report
Why would a hotel want to put together a comp set before they open? - (ANSWERS)want to
make sure their price point is good or maybe see if the hotel is even worth building
,HM 480 CHIA FINAL UPDATED ACTUAL Exam Questions and
CORRECT Answers
!@#$%%%%%
Who chooses the Comp Set? - (ANSWERS)-management company %%%%%%
-GM
-Chain Company
-Sales and Marketing Team
All might have different goals or agendas
Choosing the comp set/ setting chain standards - (ANSWERS)-including/excluding specific
chains
-including/excluding different properties of the same chain
-choosing properties within specific radial distance
-choosing properties within specific chain scales
4 P's - (ANSWERS)-Participation--> do they send STR their data?
-Proximity--> are competitors in the same town, state, region, country?
-Pricing--> competitors will have similar prices to your hotel
-Product--> competitors will generally be similar to your hotel with amenities and features
Participation - (ANSWERS)Monthly- usually default
Daily- most hotels submit info daily or each week
Segmentation-many submit rooms sold, revenue broken down by transient, group, contract
Additional Revenue- F&B and other revenue
Proximity - (ANSWERS)Distance- how many miles away?
Market/Tract (Submarket)- will help you identify hotels that are geographically close to the
subject hotel, can also look at city, zip code, county
Location- airport, downtown area, beach/resort area
Pricing - (ANSWERS)Scale- if a chain hotel
Class- help you to identify independent hotels
-can also be found on the Internet
Product - (ANSWERS)Number of rooms- should be similar to you
Open Date- around same age, different occ% for new vs. Old hotels
Hotel Type- Boutique, Extended Stay, Convention, etc.
Meeting Space- compare
Amenities- check (restaurant, spa, waterpark, etc.)
Rules to Creating a Comp Set - (ANSWERS)-Sufficiency--> in North America, comp sets MUST
include 3+ hotels in addition to yours, but encouraged to have 4+
-outside of North America, comp sets must include 4+ hotels in addition to theirs
, HM 480 CHIA FINAL UPDATED ACTUAL Exam Questions and
CORRECT Answers
!@#$%%%%%
%%%%%%
Rules : Percentage Checks - (ANSWERS)-No single property or chain can account for more than
40% of total participating room supply of a comp set
-No single company (Starwood) can account for more than 60% of the total participating room
supply of a comp set
Avg # of Properties in a Comp Set - (ANSWERS)Luxury- 5.91
Upper Upscale- 5.58
Upscale- 5.62
Upper Midscale- 5.52
Midscale- 5.51
Economy-5.60
Avg= 5.6
Reverse Comp Set - (ANSWERS)specific properties that name your hotel in their comp set
-possible to obtain members of this for your hotel from STR
When are Comp Sets Changed? - (ANSWERS)-changes in subject hotel (renovation,
conversion, new management or owner company, contract changes)
-changes in the market (new hotels open)
-strategic changes (repositioning, improving comp set strength)
-possible to change at any time, most people wait until the beginning of the year
-don't want to change too often, because then you won't be getting very good data
Rules to changing comp sets - (ANSWERS)-have to do so by a net change of 2+ properties (can
add two or remove two, add one remove one, add two drop one, drop two add one)
-if making a change with only 2 properties, both must be in a different chain, parent company,
and management company from the subject hotel
Exception: can add a brand new property which has been open LESS than 6 MONTHS OR a hotel
can remove a property from its comp set that has stopped participating after 3 months
(INACTIVE)
Additional Comp Sets - (ANSWERS)-pay extra for each comp set that you have
-when they change, can elect to keep the old for a period of time to provide perspective
Reasons for Additional Comp Sets - (ANSWERS)-local vs. Regional
-subject hotel is between two markets/cities
-aspirational
-focusing on different chains
-different set for special niche (water park, boutique)
