Which is an accurate statement regarding Class groups for hotels?

The statement regarding independent hotels' Class groups depending on their Average Daily Rate (ADR) relative to chain hotels is correct because Class groups categorize hotels based on their pricing structure and market segmentation. ADR serves as a key metric in this classification; it helps determine where an independent hotel fits within the competitive landscape compared to chain hotels. Typically, a hotel’s positioning within a Class group reflects its pricing strategy, amenities, and overall guest experience compared with other properties.

For independent hotels, this is particularly significant because they often strive to establish themselves within a particular market niche that aligns with their pricing. By measuring their ADR against that of comparable chain hotels, independent properties can accurately assess their competitive stance, leading to more informed marketing and operational decisions.

Understanding this classification helps both consumers and hotel operators make better choices regarding pricing, branding, and positioning within the market.