What percentage limit is set for any single property or chain within a competitive set?

In the context of analyzing a competitive set within the hotel industry, the percentage limit set for any single property or chain is important for ensuring that no single entity dominates the market segment being examined. A limit of 40% of total rooms serves as a threshold to maintain competitive integrity among properties.

This 40% rule ensures that the competitive set reflects a diverse collection of hotel options, enabling more accurate benchmarking. If one property were to exceed this percentage, it may skew the performance metrics, making it difficult to assess the performance of other properties in the set. This standard promotes fair competition and helps stakeholders make informed decisions based on a well-rounded view of the market environment.

In contrast, other options indicate higher thresholds, which could lead to a scenario where one property overly influences performance metrics, reducing the effectiveness of the competitive analysis. Therefore, the 40% limit is specifically designed to foster a balanced comparative landscape.