In North America and Asia Pacific, how many hotels must be included in a competitive set in addition to the subject?

The correct answer is based on industry standards for determining a competitive set in hotel performance analysis, which is crucial for benchmarking and market analysis. In both North America and Asia Pacific, it is standard practice to include a minimum of four additional hotels in a competitive set alongside the subject hotel.

The rationale behind this standard is to provide a more comprehensive analysis of market positioning and to ensure that the subject hotel is being compared against a varied and relevant group of direct competitors. This allows for a clearer understanding of market dynamics, guest expectations, and potential pricing strategies.

Including four other hotels helps to account for variations in service levels, pricing strategies, location, and amenity offerings, thus equipping hotel operators and managers with better insights to make informed operational and marketing decisions. This number strikes a balance between having enough data points for meaningful analysis while ensuring the competitive set remains manageable and relevant.