HotStats BlogStop Guessing—Start Benchmarking Smarter
If your hotel is still using an outdated Comp Set—or worse, none at all—you’re flying blind. The right Comp Set is more than just a list of nearby hotels. It’s a strategic tool that helps you maximize revenue, control costs, and stay ahead of the competition.
The good news? Building a data-driven Comp Set is easier than you think. Here’s how to get started:
Step 1: Identify Your True Competitors
Not all hotels in your area are your competition. A well-crafted Comp Set considers more than just proximity and star rating. Instead, focus on:
- Guest Demographics – Are your guests primarily business travelers, leisure seekers, or group bookings? Your Comp Set should match your audience.
- Facilities & Revenue Streams – If your hotel thrives on F&B, conference spaces, or wellness amenities, compare yourself to properties with similar revenue drivers.
- Market Dynamics – Seasonality, demand patterns, and pricing strategies matter. Benchmark against hotels that operate in the same market conditions as you.
Avoid This Common Mistake: Many hotels stick with outdated Comp Sets for years. If your market or hotel positioning has evolved, your Comp Set should too.
Step 2: Validate Your Selections with Data
Guesswork won’t cut it. Use data to ensure your Comp Set is truly representative. Key performance metrics to analyze include:
- ADR Trends – How do competitors price their rooms compared to your hotel?
- Labor Cost Efficiency – Are you overspending on staffing compared to similar properties?
- F&B Revenue Impact – If your hotel relies on restaurant and bar revenue, make sure your Comp Set includes hotels with strong F&B operations.
By using clean and actionable benchmarking data from HotStats, you’ll create a Comp Set that provides meaningful insights—leading to smarter pricing and operational decisions.
The Importance of a Valid Comp Set
However, not just any group of hotels will suffice. To ensure benchmarking accuracy, confidentiality, and fairness, hotel analytics companies enforce strict Comp Set validity rules. HotStats follows these key guidelines for external custom sets:
Sufficiency Rule: Your Comp Set must include at least four hotels, excluding the subject hotel, to ensure proper external benchmarking and prevent any one hotel from being singled out.
Anonymity Rule: The Comp Set must contain hotels from at least three different operators and at least three different brands, not counting the subject hotel, to protect financial data confidentiality.
Room Count Rule:
- Each operator and brand must not account for more than 50% of the Comp Set’s total room count.
- No brand parent (franchisor) can represent more than 70% of the total room count.
- This prevents one entity from disproportionately influencing the results.
Without these rules, Comp Set data could become skewed, misleading, or even breach confidentiality agreements. Ensuring validity allows hotels to confidently analyze financial and operational performance, optimizing strategies for success.
Step 3: Continuously Refine Your Comp Set
Your Comp Set should evolve as the market changes. New competitors enter, guest behavior shifts, and industry trends fluctuate. That’s why successful hotels review their Comp Sets at least once a year.
Why It Matters: Hotels that fine-tune their Comp Sets consistently outperform those that don’t. They stay competitive with pricing, labor management, and revenue strategies based on real-time insights—not outdated assumptions.
Get Started Today
A customized Comp Set isn’t just a benchmarking tool—it’s a profitability engine. If you’re using outdated comparisons, you’re leaving money on the table.
Want to build a Comp Set that works for you? Let HotStats help you uncover smarter benchmarking insights.
Talk to us today—askus@hotstats.com.
Photo by Daniel Seßler on Unsplash
