Lodging Operations

Comp Set

Comp set (competitive set) is the curated group of 5–10 hotels that directly compete with a subject property for the same guests, used as the standard peer benchmark for evaluating occupancy, ADR, and RevPAR performance in hotel revenue management.

A comp set (competitive set) is a curated group of 5–10 hotels that directly compete with a subject property for the same guests — the properties a traveler actively compares before making a booking decision. It is the foundational benchmarking unit in hotel revenue management, giving operators a peer group against which to evaluate occupancy, ADR, and RevPAR performance.

What Makes a Valid Comp Set

A well-constructed comp set reflects true market competition, not aspiration. Hotels selected should share geographic proximity, star rating or hotel class, ADR tier, room count, amenity parity (meeting space, F&B, pool, parking), target guest segment (leisure, corporate, group), and brand affiliation.

Two common mistakes undermine comp set accuracy: including aspirational properties that don’t actually compete for the same guests, and selecting weaker properties to inflate index scores. Both produce misleading benchmarks that distort strategic decisions.

The Three Core Performance Indexes

Comp set data powers three indexes that translate raw performance numbers into competitive context. Each is calculated by dividing the hotel’s metric by the comp set average and multiplying by 100. A score above 100 means the hotel is outperforming its peers; below 100 means it’s losing market share.

Market Penetration Index (MPI): MPI = (Hotel Occupancy ÷ Comp Set Occupancy) × 100. Measures how the hotel captures occupancy relative to its comp set.
Average Rate Index (ARI): ARI = (Hotel ADR ÷ Comp Set ADR) × 100. Measures rate positioning against competitors.
Revenue Generation Index (RGI): RGI = (Hotel RevPAR ÷ Comp Set RevPAR) × 100. The combined revenue performance indicator — the metric most closely watched by ownership and investors.

For example, if a hotel posts a RevPAR of $110 and the comp set average is $100, the RGI is 110 — meaning the property is capturing more than its fair share of revenue. These indexes give revenue managers a way to separate internal execution issues from market-wide softness.

The STR STAR Report

The STR STAR Report (Smith Travel Accommodations Report), produced by STR (now part of CoStar Group), is the hospitality industry’s standard comp set benchmarking tool. Hotels submit rooms available, rooms sold, and room revenue data to STR in exchange for aggregated, anonymized reports comparing their performance to their self-selected comp set on occupancy, ADR, and RevPAR. Individual property data is kept confidential.

STR’s database directly sources data from approximately 94,000 hotels and 12 million rooms globally. Reports are published weekly or monthly. Participation requires a paid subscription and consistent data submission — properties that don’t submit data can’t receive benchmark reports.

Who Uses Comp Set Data and When

Revenue Management is the primary owner of comp set analysis, using it daily to make rate and inventory decisions. But the data flows across departments: Sales & Marketing uses it to shape pricing strategy and promotional positioning; Finance references it during budgeting and forecasting cycles; General Management uses it for strategic planning; and Ownership and investors use it in performance reporting to evaluate whether a property is holding or growing its market share.

Comp set analysis also informs upsell strategy — understanding where competitor rates sit helps revenue managers identify price gaps to capture incremental ADR. The daily performance data that feeds comp set reports originates in the property’s own Daily Sales Report, and deviations from expected index performance are often surfaced in the Variance Report.

Maintaining an Accurate Comp Set

A comp set is not static. Industry best practice calls for reviewing and updating it at least twice a year — and immediately following any significant market event such as a new hotel opening, a competitor renovation, a property repositioning, or a meaningful shift in local travel demand.

Many hotels maintain multiple comp sets for different strategic purposes: a primary set for daily benchmarking, a secondary set focused on group or corporate business, a seasonal set, and an aspirational set used for long-term positioning goals. Each serves a different analytical function and should be managed separately.

Expanding the Comp Set Beyond Traditional Hotels

The rise of OTAs, metasearch engines, and short-term rental platforms has broadened what counts as direct competition. In leisure and resort markets especially, modern comp set analysis increasingly accounts for Airbnb and similar supply that competes for the same guest demand — even when those properties don’t appear in STR data. Revenue managers working in these segments need to layer OTA ranking analysis and qualitative review data alongside STR benchmarks to get a complete competitive picture.

Sustainability positioning is also emerging as a comp set differentiator. Hotels with LEED, Green Key, or EarthCheck certifications may hold a competitive advantage in corporate travel segments operating under ESG mandates — making sustainable hospitality credentials an increasingly relevant factor when evaluating comp set parity. Learn more in our glossary entries for RevPASH and Reservation Management for adjacent revenue strategy concepts.

Common Uses

Department & Usage: Revenue Management is the primary owner of comp set data, using it daily to set rates, adjust inventory strategy, and track market share via MPI, ARI, and RGI indexes. Sales & Marketing references comp set positioning to develop pricing and promotional strategy. Finance uses it during budgeting and forecasting, and General Management relies on it for strategic planning. Ownership and investors monitor comp set index performance — particularly RGI — as a key indicator of whether a property is holding or growing its revenue market share. Comp set analysis is most formally conducted through the STR STAR Report, submitted and reviewed on a weekly or monthly cycle.

Frequently Asked Questions

A comp set (competitive set) is a curated group of 5–10 hotels that directly compete with a subject property for the same guests. It serves as the benchmark for comparing performance on key metrics like occupancy, ADR, and RevPAR. Hotels are grouped based on geographic proximity, star rating, price range, amenity parity, and target guest segment.

The three indexes are: Market Penetration Index (MPI) for occupancy (Hotel Occupancy ÷ Comp Set Occupancy × 100), Average Rate Index (ARI) for ADR (Hotel ADR ÷ Comp Set ADR × 100), and Revenue Generation Index (RGI) for RevPAR (Hotel RevPAR ÷ Comp Set RevPAR × 100). A score above 100 on any index means the hotel is outperforming its comp set.

The STR STAR Report (Smith Travel Accommodations Report) is the hospitality industry's standard benchmarking tool, produced by STR/CoStar. Hotels select their comp set and submit occupancy, room revenue, and rooms-sold data to STR. In return, they receive anonymized, aggregated reports comparing their performance against the comp set on occupancy, ADR, and RevPAR. Individual property data remains confidential.

Industry standard is 5–10 hotels. STR's framework works optimally with 3–5 closely matched competitors in the core comp set. Many properties maintain multiple comp sets — a primary set for daily benchmarking, and secondary or segment-specific sets for group business, corporate accounts, or seasonal analysis.

At least twice a year, or immediately after any significant market change — such as a new hotel opening, a competitor renovation or repositioning, or a notable shift in local traveler demographics. An outdated comp set produces misleading benchmarks that can lead to poor pricing and strategy decisions.

Revenue Management is the primary user, making rate and inventory decisions based on daily index performance. Sales & Marketing, Finance, General Management, and Ownership/Investors also use comp set data for pricing strategy, budgeting, strategic planning, and performance reporting respectively.

Increasingly, yes — particularly in leisure and resort markets. As OTAs and metasearch platforms expand booking comparisons beyond traditional hotels, modern comp set analysis may incorporate short-term rental supply that competes for the same guest demand, even when those properties fall outside STR's reporting database.

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