Mark Lomanno explains how hotel benchmarking is quickly changing. Historically, the way the industry has evaluated success is viewing a subject hotel or sub-market against an aggregate, whether that be a comp set, or a chain scale catagory in a certain market. There has been a movement from average to optimal, where hotels are less focused on the average of a localized grouping of hotels and more tuned into the best they can acheive, based on real market data.
Hotels don't compete with each hotel in their comp set for 100% of their business. Kalibri Labs has introduced the Optimal Business Mix algorithm that enables hotels to see what hotels they compete with for each segment of their business and rate categories there is captureable opportunity for the subject hotel to go after. This paradigm shift moves hotels from striving for average, to optimal.
Hotel operators, asset managers and revenue managers, learn more about Hummingbird PXM, our hotel revenue strategy platform or contact us.
Brokers, underwriters, and those in the hotel investment community, learn how Optimal Business Mix can be applied to hotel real estate reports.
Read the featured article on HotelMarketing.com.