In competitive sets, what is frequently excluded when calculating metrics?

When calculating metrics in competitive sets, it is common practice to exclude the rooms of the subject hotel and those belonging to the same chain. This approach allows for a clearer comparison among competing properties within the market. The rationale behind this is to prevent any inherent bias in the data that might artificially inflate or deflate performance metrics. By excluding the subject hotel, analysts can focus solely on how similar hotels are performing without the influence of the subject hotel's own results.

This practice is essential in competitive set analysis, as it aims to provide a fair benchmark, allowing hotel managers to evaluate performance against true competitors rather than including potentially skewed data from their own operations or those of their chain. For example, if a hotel were to include its metrics, it might mask the performance trends of its direct competitors, leading to less informed strategic decisions.