Ways of Guestimating Hotel Occupancy Rates?

Question

Hello BP, I have an opportunity to develop an extended stay hotel in a rural market. The market is small, so I don't think traditional data sources will have much info. The market has a few employers which draw in transient workers so the idea sounds great on paper, I just want to validate it. There are a number of existing hotels in the area, but no extended stay.

My question is does anyone know of creative ways of guestimating how other hotels in the area are doing? Besides sitting in the parking lots counting cars?

Jay K. · Answer

You would use STR Global for this data. Though there are not any extended stay properties in your comp, you would strategically identify 6-8 select service/limited service hotels which exist in the immediate market you are interested in. STR would then aggregate the reported occupancies of the sample pool which WILL give you much more stable feedback than driving lots or depending on opinionated responses from surrounding operators.

Justin Bauer · Answer

Walk into the other property's and start a conversation with them. I mean ask. Who no's maybe you will get all the market updates you need. Try and work with them.