How to Use STR Data for ANZ Hotel Growth

STR data helps hotels in Australia and New Zealand (ANZ) improve revenue, track performance, and stay competitive. It provides key metrics like Occupancy, ADR (Average Daily Rate), and RevPAR (Revenue per Available Room) to guide pricing, market analysis, and operational decisions.

Key Takeaways:

• Core Metrics: Measure Occupancy, ADR, and RevPAR to assess and improve hotel performance.
• Market Insights: Track trends like corporate travel growth, weekend occupancy, and regional performance.
• Competitive Analysis: Use RevPAR Index (RGI) to compare against competitors and identify areas for improvement.
• Revenue Strategies: Implement dynamic pricing and demand-based adjustments for better profitability.
• Operational Efficiency: Optimize staffing and resources using STR data insights.

By monitoring daily metrics, benchmarking against competitors, and analyzing trends, ANZ hotels can make smarter decisions to maximize revenue and improve operations.

Getting Started with STR Data

Accessing STR Reports

STR, a part of CoStar, delivers tailored data solutions for the accommodation sector in Australia and New Zealand through its partnership with Austrade.

To get started with STR data:

• Request a demo to explore the platform.
• Choose your reporting frequency: daily, weekly, or monthly.
• Set up automated data submission for seamless updates.
• Log in to the CoStar platform to access your reports.

The STAR Report includes tools designed to simplify your workflow:

Key Performance Metrics

STR’s trusted benchmarks help guide important decisions through these core metrics:

With data from over 86,000 hotels across 2,744 locations ^[2], STR enables highly detailed market analysis. For example, during New Year’s Eve 2023, Sydney achieved an ADR of AUD$709.10 and an occupancy rate of 90.2% ^[3], showcasing the value of STR’s insights.

These metrics, combined with STR’s tools for visualization and automation, give hotels in Australia and New Zealand the resources they need for effective market analysis and planning.

Market Comparison Analysis

Competitor Analysis

STR data helps hotels measure their performance against competitors by using detailed insights. The foundation of this analysis is defining a Competitive Set (Comp Set) – a group of similar properties based on factors like class, room count, and meeting space, not just location.

A key metric to watch is the RevPAR Index (RGI), which compares your hotel’s revenue per available room (RevPAR) to your Comp Set. An RGI above 100 means your hotel is outperforming competitors, while anything below 100 signals areas to improve.

Here are the main areas to evaluate when analyzing your competitive position:

Once you’ve reviewed your competitive set, zoom out to examine broader market trends. This can help you identify untapped growth opportunities.

Market Pattern Analysis

Recent STR data sheds light on trends in the ANZ hotel market, offering insights for strategic planning. In Australia, capital cities are bouncing back strongly, with demand surpassing 2019 levels in most areas – Darwin being a notable exception ^[4].

Key trends to watch:

Occupancy:

• Sydney has seen 25 nights with occupancy above 90% so far in 2024, compared to 49 such nights in all of 2019 ^[4].
• Corporate travel and group meetings are driving midweek occupancy growth.
• Weekend occupancy remains steady, though winter saw a slight dip ^[4].

Rate Performance:

• Sydney hit a record ADR of AUD$709.10 with 90.2% occupancy during New Year’s Eve ^[3].
• Hotels in lower price categories have performed slightly better overall this year ^[3].

Regional Variations:

• Sydney and Melbourne are catching up to other capital cities in performance ^[3].
• New Zealand faces challenges, with RevPAR down 3.8% year to date. This is due to increased supply (+2.7%) and softer demand (+1.4%) ^[4].

“When you are evaluating performance of a hotel in a market, it’s the single source of truth at the moment.” – Dana Cariss, VP of Revenue Strategy and Distribution, Coral Tree Hospitality ^[2]

To identify growth opportunities, focus on historical data and keep an eye on future trends like corporate travel patterns, seasonal fluctuations, and major events.

Applying STR Data Insights

Revenue Management Tips

STR data plays a crucial role in refining pricing and revenue strategies. For instance, InterContinental Hotels Group (IHG) managed to generate an extra $145 million in revenue through price optimization, with projections indicating an annual potential of $400 million upon full implementation ^[5].

Key strategies for boosting revenue include:

• Dynamic Rate Adjustment
  Stay on top of daily metrics to make quick pricing decisions. Caroline Thissen from Radisson Hotel Group explains:

  “Key for me is the daily RGI reports so I can actually see how the hotels have done overnight, how they’re tracking in the months, so that we can make quick decisions and if we need to change strategy” ^[2].

• Demand-Based Pricing
  Adjust rates based on historical data: charge higher prices during peak periods and offer competitive rates during slower times.

These approaches not only enhance revenue but also set the stage for operational improvements.

Operations Improvement

STR data also reveals areas where operations can improve. In ANZ hotels, this includes optimizing staffing based on occupancy forecasts, better resource allocation, and identifying service gaps through competitive benchmarking. Additionally, automated tools can streamline guest communication, making operations more efficient.

When combined with expert insights, these operational changes can significantly boost hotel performance.

Professional Support Options

Expert guidance helps turn STR data into actionable strategies. Companies like Switch Hotel Solutions offer tailored services in revenue management, sales, marketing, and operational consulting specifically for the ANZ market.

Andrew Rubinacci, Chief Advisory Officer at FLYR Hospitality, emphasizes the importance of applying data effectively:

“Data’s data: it’s what you do with it and how you incorporate it into your everyday tactics and strategies. [STR] allows us to do that, they present the information in a really digestible format, and it allows us to go ahead and do the things we need to with it” ^[2].

A great example of this is Prosper Hotels. In early 2021, they implemented data-driven strategies for one of their properties, resulting in a $12.97 increase in RevPAR within two months, a 22% improvement during high-demand events, and an extra $3,590 in monthly revenue through strategic rate adjustments ^[6].

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Data Implementation Guide

Implementation Steps

To get started, join STR’s data collection program. Austrade has partnered with STR to oversee the collection of accommodation data across Australia ^[1].

1. Data Collection Setup
   • Configure automated data reporting systems.
   • Submit data on a daily basis.
   • Ensure data meets high-quality standards.
2. Metric Integration

   Focus on incorporating these performance indicators into your analysis:

   • Total revenue per available room (TRevPAR)
   • Gross operating profit per available room (GOPPAR)
   • Labor costs per available room (LPAR)
   • EBITDA benchmarks ^[7]
3. Structured Application

   Establish a clear plan for using STR insights that aligns with your property’s goals and market position. With this framework in place, tracking and maintaining progress becomes critical for long-term success.

Progress Tracking

Once your implementation strategy is underway, consistent monitoring is key to making the most of your STR data.

Daily Monitoring
Evaluate daily metrics to adapt quickly to market shifts and optimize your strategies.

Performance Metrics Table

Adjustment Strategy

• Analyze competitive insights every month.
• Review forward booking trends quarterly.
• Explore market opportunities on an annual basis.
• Refine strategies using P&L benchmarking data ^[7].

If your property requires extra guidance, consultants like Switch Hotel Solutions can assist in interpreting STR data and crafting targeted strategies tailored for the ANZ market.

Demystifying the STR Report: A Comprehensive Guide for the Hotel Industry

Conclusion

STR data plays a key role in supporting hotel growth across the ANZ region as market conditions stabilize ^[1]. Its insights are designed for practical, daily use, making it a valuable tool for accommodation providers.

With Austrade backing STR’s data collection efforts, ANZ hotels now have access to detailed market insights that help them make smarter decisions ^[1]. Using this data regularly not only helps maintain strong performance but also paves the way for future advancements.

“We use STR every day, and it is extremely valuable, and I think it is a competitive advantage for the people and the expertise we have. Data’s data: it’s what you do with it and how you incorporate it into your everyday tactics and strategies. [STR] allows us to do that, they present the information in a really digestible format, and it allows us to go ahead and do the things we need to with it.” ^[2]

To get the most out of STR data, focus on these key actions:

• Monitor performance metrics daily
• Benchmark your results against competitors
• Analyze market trends regularly
• Adjust revenue strategies based on data insights

The post How to Use STR Data for ANZ Hotel Growth first appeared on Switch Hotel Solutions.