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Modern hotels fill daytime occupancy by offering day rooms. Day rooms are booked in a block of hours typically between 8 am and 5 pm, [7] before the typical night shift. For example, the Four Points, a Sheraton hotel in Los Angeles, began offering day rooms. [7]
Only when something goes wrong with a room or a stay does the issue of what law applies and who is responsible for the possible damage caused arise. When that situation ocurs, suddenly the questions of characterization of the accommodation can be critical.
The average daily rate (ADR) represents the average rental income earned for an occupied room per day. In 2022, the ADR of the United States hotel industry was forecast to reach 145 U.S. dollars....
- Data Reporting Guidelines
- Regarding including or excluding service charges when reporting rooms/other revenue:
- Reporting Rooms Available
- Package Revenues
- Marketing Promotions
- Pet and Smoking Rooms
- Reporting Rooms Revenue
- Include in Rooms Revenue Figures:
- Regarding including or exluding service charges when reporting rooms/other revenue:
- Wholesalers, eChannel, online travel agencies (OTAs) and/or internet rates
- Package rates:
- Loyalty program redemptions and rewards:
- Marketing Promotions
- Reporting Rooms Sold
- Complimentary rooms
- “No-shows”
- Owner occupied condominiums
- Reporting Rooms Available
- Mixed-ownership properties (i.e. hotels including timeshare/condo inventory)
- Property assumes the predominant economic risk long term (Scenario 1)
- Group Rooms Revenue
- Food and Beverage Revenue
- Other Revenue
- Total Revenue
- Other Data Reporting Notes
The STR data reporting guidelines were developed and evolved to align with the Uniform System of Accounts for the Lodging Industry (USALI), currently in its eleventh edition. The guidelines conform to USALI, where possible, with the spirit and intent to uphold benchmarking best practices and performance data consistency. In the current version, ST...
When acting as a principal, the full amount of services charges are only to be included in revenue if: The fees/charges are mandatory, customary, non-discretionary and automatically added to a customer account and the customer has no discretion or the ability to “opt out”, and The hotel is able to collect the charges for its own benefit (i.e. it is...
Enhanced clarity for reporting full available, renovation closed, extended closed, and mixed ownership rooms.
Additional clarity regarding properties providing gratis food and/or beverages to guests where the guest cannot opt out of the food/beverage portion.
Guidance provided for handling rooms revenue generated from “Buy Two Nights, Get One Free” and similar marketing promotions.
Guidance provided for reporting as room revenue/ADR (“room type”) versus Miscellaneous Income as cleaning or penalty fee/s. Details are provided for each of these areas within the STR data reporting guidelines sections below.
Only revenue generated from guestroom rental should be included in Rooms Revenue figures reported to STR. Revenue produced from food and beverage or other sources, including the “non-room revenue” components of package rates, should be excluded from Rooms Revenue reported to STR. Rooms Revenue reported to STR should be net of rebates, refunds, allo...
“No-shows” Revenue derived from a transient or group guest who has individually guaranteed payment to reserve a room, but has failed either to occupy the room or cancel the reservation within the prescribed time frame. For clarity, revenue from group attrition (cancellation) and transient guest cancellation after the cuto date are included in Att...
When acting as a principal, the full amount of services charges are only to be included in revenue if: The fees/charges are mandatory, customary, non-discretionary and automatically added to a customer account and the customer has no discretion or the ability to “opt-out”, and The hotel is able to collect the charges for its own benefit (i.e. it is...
Net (not gross) Rooms Revenue from wholesale and “pay when booked” internet rates should be reported to STR. Gross (not net) Rooms Revenue should be reported to STR for “pay later” internet rates, similar to traditional travel agencies. Commissions on these gross revenues are recorded as an expense to the rooms department.
Only the room revenue portion of package rates should be reported to STR. To identify the room revenue component in package rates, the Fair Market Value (FMV) of each package item should be determined. The FMV room revenue percentage should then be applied to the package rate to determine the Rooms Revenue figure reported to STR.
The conservative average of prevailing rates for similar accommodations in the hotel or as set forth by rate standards established by brand/chain. Two best practices options exist for recording loyalty redemption or rewards: Only record redemption/reward revenue in the month end total (e.g. January monthly total). Care should be given when report...
Rooms revenue generated from “buy two nights, get one free” and similar marketing promotions should be spread evenly over the nights generated by the promotion.
Only revenue generating guestrooms should be reported to STR as rooms sold. Complimentary rooms should be excluded in the rooms sold figures. Specifics of what should be included and excluded from rooms sold reported to STR are provided below:
Not associated with a promotion or contract (e.g. gratis rooms provided to employees, owners and familiarization tours).
No room nights sold are to be recorded for a no-show.
Owner occupied rooms should be treated as complimentary rooms.
Full room night availability (i.e. number of rooms at the property multiplied by the days in the period) must be reported for each hotel. There should be NO adjustment in room availability re-ported to STR if rooms are temporarily out of service for renovation. If rooms are permanently removed from inventory, hotel management should contact STR to...
Properties of all types are building or converting rooms into residential units creating “mixed-ownership” entities. These facilities may be timeshare, strata, fractional use or whole ownership. Merely operating these mixed-own-ership properties as a lodging operation does not in and of itself qualify the revenue stream to be recorded in the Rooms...
The property enters into an agreement with the third-par-ty unit owner that extends one year or beyond and the units are included in the hotel room inventory for the full year. Under the terms of the agreement, the property assumes the economic risk associated with operating the third-party-owned units pursuant to the contractual relationship. The...
Includes revenue derived from renting blocks of rooms or suites to a group. A group is typically defined as 10 or more rooms per night sold pursuant to a contract. Group Rooms Revenue is recorded net of discounts to wholesalers for selling large blocks of rooms. Rebates or subsidies granted directly to a group should be recorded as contra revenue. ...
Revenues derived from the sale of food, including co ee, milk, tea and soft drinks. Revenues derived from the sale of beverages including, beer, wine, liquors and ale, including banquet beverage revenues. Revenues derived from other sources such as meeting room rentals, audiovisual equipment rentals, cover or service charges or other revenues wit...
Includes all revenues collected by the property that are not defined above as Rooms Revenue or Food and Beverage Revenue (e.g. parking, spa, telecommunications).
Includes all revenues generated from hotel operations listed above as Rooms, F&B and Other Revenue (e.g. parking, spa, telecommunications).
Partial Month Data: Monthly data for hotels new to a company’s portfolio (i.e. new construction, acquisitions, conversions) should be reported to STR only if the property was open 15 or more days in the initial month of operation. Hotel “Soft Openings”: Management of newly constructed hotels should provide STR the correct physical room inventory a...
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Dec 18, 2023 · Forecast average daily rate of hotels in the United States from 2022 to 2024 (in U.S. dollars)
hotel room night demand and room revenue are projected to nearly return to 2019 levels in 2022. Room revenues are projected to reach $168 billion, within 1% of 2019 figures and an increase of 19% compared to 2021. Occupancy is projected to hit 63.4%, nearing the 66.0% rate achieved in 2019 and far above the 44% and 57.6% reached in 2020 and 2021,
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