In hotel revenue management, a competitive set (comp set) is the defined group of competitor hotels against which a property benchmarks its performance. Selecting the right comp set is one of the most important strategic decisions a hotel makes, as it directly influences how management interprets performance data, sets pricing strategies, and evaluates market positioning. Comp set analysis through STR reports is the industry standard for competitive benchmarking.
A hotel comp set is a curated group of 4-7 competitor properties that most closely match a hotel in key attributes: geographic proximity, room count, star rating or class, service level, amenity offering, and target guest profile. The comp set serves as the baseline for performance comparison through STR's STAR reports, which measure a hotel's occupancy, ADR, and RevPAR relative to its competitive set using index scores. An index of 100 means the hotel is performing at parity with its comp set, above 100 indicates outperformance, and below 100 signals underperformance.
Choosing a comp set requires balancing several criteria. Start with hotels in the same geographic market that compete for the same guests. Match on property class and service level, ensuring a select-service hotel is not compared against luxury resorts. Consider room count, as a 50-room boutique hotel operates differently from a 500-room convention property. Evaluate amenity parity, target market mix (business vs. leisure), and distribution channel presence. Brand affiliation matters as well, since branded hotels in the same tier often compete directly. The best comp sets reflect the properties a guest would realistically consider as alternatives when making a booking decision.
A comp set provides the benchmark for key performance metrics like occupancy index (MPI), rate index (ARI), and revenue index (RGI). Without a well-defined comp set, a hotel has no context for its own numbers. A 75% occupancy rate may look strong in isolation but weak if the comp set averages 85%. Similarly, an ADR of $150 carries different implications depending on whether competitors are charging $120 or $180. Comp set data drives critical decisions including rate positioning, promotional strategy, capital investment priorities, and sales team focus. Hotel ownership groups, brand companies, and management companies all rely on comp set performance as a key measure of management effectiveness.
Hotels should review their comp set at least annually, and more frequently when significant market changes occur. New hotel openings, property renovations, brand conversions, or closures can all shift the competitive landscape. A hotel that has undergone a major renovation or rebranding may need to move to a higher-tier comp set. Seasonal analysis may also reveal that different competitors are more relevant at different times of year. STR allows properties to update their comp set, and managers should work with their revenue management and ownership teams to ensure the comp set remains accurate and strategically relevant.
A: Choose hotels that match your property in location, size, class, amenities, and target market. Typically 4-7 properties that a guest would realistically consider as alternatives. Match on service level, room count, and brand tier. Review with STR and ownership to ensure the set reflects actual competitive dynamics in your market.
A: A comp set provides the benchmark for key performance metrics including occupancy index (MPI), rate index (ARI), and revenue index (RGI). It gives context to a hotel's own numbers and drives pricing, marketing, and investment decisions. Without a comp set, a hotel cannot accurately assess whether it is winning or losing market share.
A: Yes. Hotels should review their comp set annually or whenever significant market changes occur, such as new hotel openings, renovations, brand conversions, or closures. STR allows properties to update their competitive set. Changes should be made carefully with input from revenue management and ownership to maintain benchmarking consistency over time.
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