ADR Average Daily Room Rate Occupancy % Number of rooms occupied in a current month ADR (Rate) Index (Hotel

ADR / Competitive set ADR) x 100 ADR Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Occupancy (%) Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

My property 95.46 83.15 90.65 94.65 92.73 91.27 93.22 89.85 85.58 90.77 94.8 95.38 100.56 91.68 87.6 88.76 86.29 92.7 91.72 92.49 91.41 89.32 85.98 91.18 93.63 91.01 89.09 85.4 90.82 92.85 88

Competitive set ADR (Rate Index) 93.12 102.5 87.96 94.5 92.5 98 93.67 101.1 96.5 96.1 94.56 96.5 96.81 96.3 96.27 93.3 92.47 92.5 99.3 91.4 94.91 99.9 95.26 100.1 92.45 108.8 94.09 97.4 94.59 92.6 93.58 94.8 92.38 93.4 93.69 98.9 95.99 95.6 96.83 95.5 102.49 89.2 95.44 93.6 92.48 93 90.86 100.3 89.7 104.4 92 98.9 94.33 94.5 94.87 90 99.66 91.1 88.98 104.3 91.47 96.2

Occupancy (%) Day Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday

Unique ID 1 Sa 2 Su 3 Mo 4 Tu 5 We 6 Th 7 Fr 8 Sa 9 Su 10 Mo 11 Tu 12 We 13 Th 14 Fr 15 Sa 16 Su 17 Mo 18 Tu 19 We 20 Th 21 Fr 22 Sa 23 Su 24 Mo 25 Tu 26 We 27 Th 28 Fr 29 Sa 30 Su 31 Mo

My property Competitive set Occcupancy (Index) 98.8 86.2 114.6 66.7 68.7 97 100 83.1 120.4 100 91 109.9 98.8 94.4 104.7 95.1 81 117.3 97.5 88.2 110.6 92.6 90.8 102 59.3 57.9 102.3 96.3 90.5 106.4 100 96.9 103.2 98.8 98.5 100.3 98.8 83.8 117.8 76.5 76.9 99.5 64.2 76.4 84 60.5 62.6 96.7 84 73.3 114.5 95.1 91.8 103.6 97.5 91.8 106.2 97.5 85.1 114.6 66.7 68.5 97.4 65.4 59.5 110 54.3 55.4 98.1 97.5 77.7 125.5 100 74.1 134.9 98.8 82.8 119.3 91.4 75.6 120.8 67.9 73 92.3 67.9 62.6 108.5 56.8 34.9 162.9 87.7 54.4 161.3

RevPAR Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Day Unique ID My property Competitive set RevPar (Index) Saturday 1 Sa 94.28 80.23 117.5 Sunday 2 Su 55.43 60.45 91.7 Monday 3 Mo 90.65 76.85 118 Tuesday 4 Tu 94.65 85.26 111 Wednesday5 We 91.58 91.05 100.6 Thursday 6 Th 86.77 76.62 113.2 Friday 7 Fr 90.91 85.39 106.5 Saturday 8 Sa 83.2 87.38 95.2 Sunday 9 Su 50.72 53.59 94.6 Monday 10 Mo 87.41 89.88 97.2 Tuesday 11 Tu 94.8 91.99 103.1 Wednesday12 We 94.2 93.79 100.4 Thursday 13 Th 99.32 77.51 128.1 Friday 14 Fr 70.17 72.88 97 Saturday 15 Sa 56.23 72.28 77.8 Sunday 16 Su 53.69 58.55 91.7 Monday 17 Mo 72.44 67.74 106.9 Tuesday 18 Tu 88.12 86 102.5 Wednesday19 We 89.46 88.12 101.5 Thursday 20 Th 90.21 82.43 109.4 Friday 21 Fr 60.94 70.17 86.8 Saturday 22 Sa 58.44 56.78 102.9 Sunday 23 Su 46.7 51.22 91.2 Monday 24 Mo 88.93 70.59 126 Tuesday 25 Tu 93.63 66.47 140.9 Wednesday26 We 89.89 76.2 118 Thursday 27 Th 81.4 71.35 114.1 Friday 28 Fr 57.99 69.81 83.1 Saturday 29 Sa 61.67 62.35 98.9 Sunday 30 Su 52.73 31.03 169.9 Monday 31 Mo 77.14 49.72 155.1

Day Day 1 Saturday 2 Sunday 3 Monday 4 Tuesday 5Wednesday 6 Thursday 7 Friday 8 Saturday 9 Sunday 10 Monday 11 Tuesday 12Wednesday 13 Thursday 14 Friday 15 Saturday 16 Sunday 17 Monday 18 Tuesday 19Wednesday 20 Thursday 21 Friday 22 Saturday 23 Sunday 24 Monday 25 Tuesday 26Wednesday 27 Thursday 28 Friday 29 Saturday 30 Sunday 31 Monday

Unique ID 1 Sa 2 Su 3 Mo 4 Tu 5 We 6 Th 7 Fr 8 Sa 9 Su 10 Mo 11 Tu 12 We 13 Th 14 Fr 15 Sa 16 Su 17 Mo 18 Tu 19 We 20 Th 21 Fr 22 Sa 23 Su 24 Mo 25 Tu 26 We 27 Th 28 Fr 29 Sa 30 Su 31 Mo

ADR (Rate Index) Occcupancy (Index) RevPar (Index) 102.5 114.6 117.5 94.5 97 91.7 98 120.4 118 101.1 109.9 111 96.1 104.7 100.6 96.5 117.3 113.2 96.3 110.6 106.5 93.3 102 95.2 92.5 102.3 94.6 91.4 106.4 97.2 99.9 103.2 103.1 100.1 100.3 100.4 108.8 117.8 128.1 97.4 99.5 97 92.6 84 77.8 94.8 96.7 91.7 93.4 114.5 106.9 98.9 103.6 102.5 95.6 106.2 101.5 95.5 114.6 109.4 89.2 97.4 86.8 93.6 110 102.9 93 98.1 91.2 100.3 125.5 126 104.4 134.9 140.9 98.9 119.3 118 94.5 120.8 114.1 90 92.3 83.1 91.1 108.5 98.9 104.3 162.9 169.9 96.2 161.3 155.1

Base 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

TARGET MAKET - BUSINESS TRAVELERS As we can clearly see from the chart below, the occupancy rate generally drops considerably during the weekends i.e. Saturd This trend shows that the target customer for the hotel are business travelers, who are very active during the weekdays resul As their number decreases in weekends, the occupany rate of the hotels also falls.

120 100 Occupany rate (%) 80 60 40 20 0 1 Sa 2 Su 3 Mo 4 Tu 5 We 6 Th 7 Fr 8 Sa 9 Su 10 Mo 11 Tu 12 We 13 Th 14 Fr My property

MARKET SEGMENT - MIDSCALE The chart below shows that Hampton Inn's ADR (Index) is very close to 100, and has only in few instances breached the mark Further its RevPar (index) is also high as it is able to maintain higher occupancy rates compared to its competitive set. Looking at the ADR (Rate Index) and RevPar(Index) it is very much clear that it targets the midscale market segment. In case o

180 160 140 Index Value 120 100 80 60 1 Sa 2 Su 3 Mo 4 Tu 5 We 6 Th 7 Fr 8 Sa 9 Su 10 Mo 11 Tu

ADR (Index) vs RevPar (index) vs Occu

12 We

13 Th

14 Fr

ADR (Rate Index)

y during the weekends i.e. Saturday and Sunday. y active during the weekdays resulting in higher occupany rate.

OCCUPANY RATE CHART

14 Fr

15 Sa

16 Su

17 Mo

18 Tu

19 We

20 Th

21 Fr

22 Sa

23 Su

24 Mo

25 Tu

26 We

27 Th

28 Fr

Date and Day My property Competitive set

few instances breached the mark. red to its competitive set. idscale market segment. In case of upscale market segment, the occupancy rate would not have been that higher.

ADR (Index) vs RevPar (index) vs Occupancy (Index)

14 Fr

15 Sa

16 Su

17 Mo

18 Tu

19 We

20 Th

21 Fr

22 Sa

23 Su

24 Mo

25 Tu

26 We

27 Th

28 Fr

Day and date RevPar (Index) Base Occcupancy (Index)

29 Sa

30 Su

31 Mo

29 Sa

30 Su

31 Mo

Hampton Inn Towncity Competitive Set

Occupancy (%) Value % Change 73.4 -2.5 64.6 -1.1 ADR Value % Change 90.17 3.1 91.9 3.5 RevPar Value % Change 66.21 0.5 59.84 2.3

Hampton Inn Towncity Competitive Set

Company performance As we look at the Occupany rates for Ha Majority of this decrease can be attribu ADR or the Average daily room rate has However, the increase in ADR was large Relative performance While both the competive set and Ham Similarly, the competitive set also saw a Thus, better occupacy performance, an After analyzing the numbers, we can co

Hampton Inn Towncity Competitive Set

Occupancy ADR RevPAR

Occupany (%)

76 74 72 in % 70 68 66 64 62 60

Occupancy Rates (%)

Hampton Inn Towncity

Competitive Set

ADR
92.5 92 91.5 inAbsolute figures 91 90.5 90

ADR

inAbsolute figures

90 89.5 89 Hampton Inn Towncity Competitive Set

RevPar
68 66 64 inAbsolute figures 62 60 58 56 Hampton Inn Towncity Competitive Set

RevPar

Company performance As we look at the Occupany rates for Hampton Inn Towncity, it has decreased by 2.5% y-o-y. This is not a good signal for the organization Majority of this decrease can be attributed to the poor economic conditions prevailing at that time. ADR or the Average daily room rate has increased by 3.1% y-o-y. However, the increase in ADR was largely offselt by the decrease in occupancy (%), as a result the RevPar only increased by 0.5% during t Relative performance While both the competive set and Hampton Inn saw a reduction in their occupancy rates, the organization witnessed higher reduction in Similarly, the competitive set also saw a relative increase in its ADR. While the ADR for the competitors increased by 3.5%, Hampton Inn' Thus, better occupacy performance, and increase in ADR saw the competitors witnessing a comparatively higher increase in the RevPar. After analyzing the numbers, we can conclude that Hampton Inn has lost some of its market share to its competitors. Hampton Inn Towncity Competitive Set Absoulte difference Relative Difference 73.4 64.6 8.8 14% 90.17 91.9 -1.73 -2% 66.21 59.84 6.37 11%

Changes in Occupancy Rates (%)

0 -0.5 Hampton Inn Towncity in % -1 -1.5 -2 -2.5 -3

3.6 3.5 3.4 in % 3.3 3.2 3.1

ADR (% change)

3.1 3 2.9 Hampton Inn Towncity

2.5

RevPar (% change)

in %

1.5

0.5

0 Hampton Inn Towncity

a good signal for the organization.

r only increased by 0.5% during the year.

on witnessed higher reduction in its occupancy rates, however was still well above the competitive set. ncreased by 3.5%, Hampton Inn's ADR only increased by 3.1%. Again the competitors performed fairly well. ly higher increase in the RevPar. RevPar for the competitor set increased by 2.3%, while for Hampton Inn it increased by only 0.5%. competitors.

ncy Rates (%)

Competitive Set

Competitive Set

Competitive Set

n it increased by only 0.5%.

Hampton Inn Towncity Competitive Set Occupancy 73.4 64.6 ADR 90.17 91.9 RevPAR 66.21 59.84

Index 113.62 98.12 110.65

Index is calculated as below (Hampton Inn parameter/Comp

Since the RevPar index of Hampton Inn is more that 100 (it is 110.65) it is capturing more than its fair value. Similarily, its occupacy index of 113.62 also reflects that it is well over and above its competitive set, and has capt However, an ADR index of 98.12 shows that Hampton Inn is lagging behind the competitive set.

Index is calculated as below (Hampton Inn parameter/Competitive set parameter)*100

ng more than its fair value. ts competitive set, and has captured more than its fair share. mpetitive set.

Occupancy ADR RevPAR

Hampton Inn Towncity Competitive Set 73.4 64.6 90.17 91.9 66.21 59.84

Index 113.62 98.12 110.65

In order for the RevPar index to increase from 110.65 to 120, the RevPar should be calculated as RevPar Index*Competitive Set/100 =120*59.85/100 = 71.82 RevPar is the product of Occupany rate and ADR if the occupancy rate is assumed to be constant, to increase the RevPar, ADR must be increased substantially. RevPar = 71.82 Occupany = 73.4 ADR = (RevPar*100)/Occupancy = (71.82*100)/73.4 = 97.85 Increase of 9% So in order to increase the RevPar index to 120, the ADR should be increased by 9% or 7.68 to 97.85. Calculation of ADR = Room Income/(No. of rooms sold + Complimentary rooms)

On seeing the above calculation, the ADR can be increased in the following manner: 1. Decreasing the number of complimentary rooms being offered 2. Increasing the price of renting out each room i.e. One bed, two bed, and so on. 3. Increased spending on marketing activities to attract more customers, thus increasing the

Though increasing ADR looks possible theriotically, however, it will be very difficult to increase the ADR and maint Since the competitor set's ADR is 91.9, which means a 6.5% increase would fetch Hampton Inn an ADR of 97.85, w

calculated as

be increased substantially.

or 7.68 to 97.85.

+ Complimentary rooms)

wo bed, and so on. ustomers, thus increasing the number of rooms sold, higher the number of rooms sold, higher will be the ADR.

to increase the ADR and maintain the same levels of occupancy rates. Since the hotel targets the mid segment business travellers, they w ampton Inn an ADR of 97.85, which does not look practically possible.

gment business travellers, they will always look for value for money.

No. Of rooms RevPAR Total Revenue

Hampton Inn Towncity Competitive Set 29565 171915 77.54 46.79 2292470.1 8043902.85

According to the information provided, Hamption Inn currently has 81 rooms which translates into 29565 roomda The entire market has 471 rooms, that translates into 171,915 room rates. Total revenue of the market is 8,043,902, while that of Hampton is 2,292,470 which translates into 22% market sh In order to increase its market share, Hampton needs to increase its number of rooms along with the price it char In order to increase its performance further, the company needs to market its properties well besides provided go

Market share of Hampton Inn

22%

78%

Hampton Inn Towncity

Competitive Set

hich translates into 29565 roomdays.

which translates into 22% market share. rooms along with the price it charges its customers for each of those rooms. properties well besides provided good services.