What is considered the key to benchmarking at the property level?

The key to benchmarking at the property level is the competitive set. A competitive set is a group of similar hotels that provides a relevant comparison for a specific property. This benchmarking is vital because it allows hotel operators to assess their performance in relation to their peers in the market. By analyzing key performance indicators such as average daily rate, occupancy rates, and revenue per available room against the competitive set, a hotel can determine its market position, identify strengths and weaknesses, and make informed strategic decisions.

Using a competitive set ensures that the comparisons are meaningful and contextualized within the same market segment, thereby providing insights that are more applicable than comparisons against dissimilar properties.