Hotel STAR report: how to read STR reports and benchmark performance

Key takeaways

• A hotel STAR report benchmarks your occupancy, average daily rate (ADR) and revenue per available room (RevPAR) against a self-selected competitive set so that you can measure relative performance.
• Index numbers above 100 show you're outperforming your compset, while numbers below 100 signal underperformance in that metric.
• Weekly or monthly STR report reviews help you identify pricing opportunities, staffing needs and market shifts before they impact revenue.

Hotel performance numbers tell only half the story. Metrics like occupancy, ADR and RevPAR matter, but without competitive context, you can’t know whether those figures reflect strong execution or missed opportunity.

That’s where a hotel STAR report becomes essential.

A STAR report benchmarks your property against a defined competitive set, transforming internal performance data into market intelligence. It shows whether you’re gaining share, losing pricing power or outperforming similar hotels in your segment.

In this article, we'll explain what a hotel STAR report is, how STR benchmarking works and how to translate index scores into practical revenue and operational decisions.

What is a hotel STAR report?

A hotel STAR report is a standardized benchmarking tool from Smith Travel Research (STR) that compares your property's occupancy, ADR and RevPAR against hotels you compete with directly.

You select a competitive set of properties similar to yours in location, size or service level. STR then aggregates anonymized data from all participating hotels and delivers reports showing where you rank within that group.

These reports present your metrics alongside your competitive set averages and the broader market. You see raw numbers, percentage changes from prior periods, index scores and your rank within the compset.

This combination tells you not just how you're performing but also whether you're gaining or losing ground relative to hotels competing for the same guests.

What does STR stand for in the hotel industry?

STR originally stood for Smith Travel Research, the company that created these benchmarking reports decades ago. The company now operates as STR under CoStar Group, and the acronym has become the industry standard term for hotel performance benchmarking.

When hoteliers mention an STR report, they refer to the data platform and methodology created by STR to track and compare hotel metrics across various markets.

What can a STAR report help hotels understand?

A STAR report answers questions your internal data can't address on its own. You may know that your occupancy hit 75% last month, but was that strong for your market? Your ADR may have increased8%, but did your competitors raise rates even higher? These reports show you whether your performance reflects smart decisions or missed opportunities.

The reports reveal pricing power. If your ADR index sits at 95 while your occupancy index hits 105, you're filling rooms but leaving rate potential on the table. This gap suggests guests see value in your property, which means you can test higher rates without sacrificing volume. On the other hand, high ADR with weak occupancy points to a rate resistance problem worth investigating.

You can also spot operational trends. Consistent weekday underperformance in occupancy might signal a need for stronger corporate partnerships. Weekend strength, with lagging weekday numbers, suggests your leisure marketing works, but your business travel mix needs attention.

Segmentation data within the report breaks down performance by guest type, showing you which revenue streams drive results and which need support.

Which hotels benefit the most from STR reports?

Hotels in established markets with clear peer sets benefit the most from STR reports, as they provide consistent, comparable performance benchmarks.

For example, a 150-room select-service hotel near an airport can compare its performance to nearby competitors. This comparison helps identify specific opportunities for improvement, such as securing better group rates or capturing more transient business.

Similarly, independent hotels gain value by understanding how branded competitors price and perform. With this insight, they can position themselves more strategically without the large marketing budgets or loyalty programs.

At a broader level, multi-property operators use STR reports to assess performance across their portfolio, enabling more informed, data-driven decisions about resource allocation.

How STR reports work in the hotel industry

STR reports play an important role in the hotel industry by providing valuable insights into a property's performance relative to its competitors and the overall market.

STR collects daily performance data from participating hotels through system integrations or manual submissions, including occupancy, ADR and room revenue. In exchange, hotels gain access to aggregated competitive data, while individual property data remains anonymized.

Updated weekly or monthly, these reports compare your metrics against your competitive set and market averages. Forward STAR reports go a step further by providing future performance data, helping you adjust rates or promotions proactively before gaps lead to revenue losses.

However, to ensure reliable benchmarks, you must submit data accurately and on time. STR enforces quality standards and flags properties with data gaps, so selecting a compset with consistent reporting practices is essential to maximizing the value of your report.

What is a competitive set (compset)?

A competitive set is a group of hotels used for comparison in a STAR report, selected based on shared characteristics such as size, service level, location and market segment.

It typically includes four to eight hotels that directly compete for the same guests. Choosing the right compset is crucial, as it should reflect properties that charge similar rates and attract similar target segments.

Over time, you can adjust your compset as your property evolves, such as after a renovation or when new competitors enter the market. Regular compset reviews ensure your benchmarking stays relevant and accurate.

Key KPIs in a hotel STAR report

Every STAR report centers on three core performance metrics that determine how effectively your hotel captures demand and converts it into revenue.

Each metric includes an index score that compares your performance to your competitive set. An index of 100 indicates parity, above 100 signals outperformance and below 100 reflects underperformance.

1. Occupancy

Occupancy measures the percentage of available rooms sold during the reporting period. A hotel STAR report shows your occupancy alongside your competitive set and market average, plus an index score that tells you whether you're capturing your fair share of demand.

An occupancy index of 98 means you're capturing slightly less demand than your peers, which signals a distribution, pricing or reputation issue worth investigating. Day-of-week breakdowns further reveal where demand concentrates, guiding smarter tactical decisions.

2. Average daily rate (ADR)

ADR represents the average price charged per occupied room, and your ADR index quantifies how your pricing compares to competitors.

As part of key hotel industry KPIs, an index of 102 means you're achieving 2% higher rates than your compset, suggesting strong perceived value. However, if your ADR trails your compset by 10%, you're either deliberately positioning lower or leaving revenue behind due to a weak rate discipline.

3. Revenue per available room (RevPAR)

RevPAR combines occupancy and ADR into a single metric showing how effectively you're monetizing your total inventory. The best RevPAR growth comes from balanced improvements in both rate and occupancy simultaneously, not sacrificing one for the other.

What your index scores reveal

Tracking multiple indices together, such as ADR, occupancy and RevPAR, reveals a more complete picture of your competitive position.

High ADR but low occupancy may indicate overpricing, while high occupancy and low ADR suggest you're undervaluing your product. The ideal position is above 100 across all metrics. Your rank within the compset adds further clarity, with first or second place showing strong performance and bottom ranks signaling issues to address.

How to read and analyze a hotel STAR report

Opening a STAR report for the first time can seem overwhelming with rows of numbers, multiple tabs and index scores. The key is to focus on the metrics that matter most to your current business challenges.

Here's how to break it down:

Step 1: Review overall performance vs. your compset

Begin by checking your occupancy, ADR and RevPAR next to your competitors’ averages. If your indices are above 100, you're outperforming. A score below 100 suggests areas for improvement. Compare ranks to understand if you're winning through volume or rate, or facing distribution or pricing challenges.

Step 2: Analyze trends over time

Look at trailing three-month or year-to-date views for consistent improvement or volatile swings. Year-over-year comparisons provide insights into long-term growth.

For example, a higher RevPAR index this year vs. last year shows progress, while declining indices may indicate lost ground.

Step 3: Compare year-on-year performance

Year-over-year comparisons filter out seasonal noise, helping identify true performance trends. If your occupancy drops but increases year-over-year, you're growing.

Conversely, a decline in occupancy and ADR indicates a larger market shift or internal issues. Pay attention to external factors affecting the entire market.

Step 4: Identify strengths, weaknesses and opportunities

Break down performance by segments and days of the week. Look for high transient occupancy with low ADR, indicating you're underpricing and leaving revenue on the table.

Weak group business or weekday underperformance signals areas where targeted efforts could boost performance.

Step 5: Turn insights into action plans

Once insights are gathered, create actionable plans. If weekday ADR trails competitors, the test rate increases. Track progress against measurable goals and adjust tactics monthly. Then share findings across departments to align teams on performance improvements, ensuring that operational efforts contribute directly to revenue growth.

What are the different sections of a STAR report?

A hotel STAR report is divided into structured sections that break performance into progressively detailed views of your competitive position. Each section answers a different question, from high-level summaries to segmentation and day-of-week analysis.

Here is what each one covers:

The more granular the section, the more precisely you can diagnose performance gaps. Some properties focus primarily on the summary view and RevPAR index, while others dig into segmentation and day-of-week data to refine tactical pricing. Your operational priorities determine which sections deliver the most value.

Common mistakes hotels make when using STAR reports

Many hotels struggle to extract full value from STAR reports by failing to connect insights to operational improvements.

Here are some key mistakes to watch out for when analyzing your STAR data:

1. Treating STAR reports as scorecards, not actionable tools

Reviewing reports monthly without taking action on insights is a common mistake. To improve metrics such as RevPAR, hotels must implement deliberate changes in pricing, distribution, marketing or operations based on the data provided in the report.

2. Choosing the wrong competitive set

Adding aspirational properties to your competitive set skews the analysis, while only including weaker competitors inflates your indices. An honest and realistic compset that reflects the actual competition provides the most actionable insights for improvement.

3. Overlooking underlying metrics (occupancy and ADR indices)

Focusing only on the RevPAR index can mask poor performance in occupancy and ADR. Always analyze the underlying metrics to understand the true drivers of your RevPAR, as these factors shape profitability in different ways.

4. Failing to connect insights with departmental execution

Sharing STAR report insights across departments ensures alignment on performance improvements: front desk teams see competitive positioning, and sales teams gain segment performance insights, helping the property achieve its revenue goals.

5. Not using POS reporting

Not integrating STAR report insights with POS reporting data from food and beverage operations hinders a comprehensive understanding of the property’s overall performance. This connection helps track guest spending patterns and offers a fuller picture of revenue streams across departments.

Turning STAR report insights into revenue action

STAR reports show where you stand, but acting on that intelligence requires a system that responds to market changes without delay.

That's where Atomize, a Mews company, comes in. Atomize RMS integrates competitive benchmarking data with operational execution, turning insights into actionable revenue gains instead of leaving them for monthly review.

When your STAR report flags a gap, Atomize helps you close it through:

• Dynamic pricing: Rates adjust automatically based on demand signals, keeping your pricing competitive as market conditions shift.
• Demand forecasting: Forward-looking data helps you anticipate pickup gaps and act before they affect revenue.
• Data and reporting: Internal KPIs sit alongside benchmarking data so that revenue managers can build rate strategies that account for property performance and competitive dynamics.

This makes benchmark data part of daily operations, not just a periodic exercise.

Turn STAR report insights into measurable revenue growth – book a demo with Mews today.