This sheet allows you to identify all the available room nights in the subject market and the supply and demand. This will allow you to obtain your demand and occupancy projections.
This guide will cover using the Room Night Builder sheet in your Hospitality Workbook.
Prerequisites
- Subscription Tier:
-
Enterprise Only
- Please get in touch with your Client Success Manager if you wish to upgrade your subscription to access the Valcre Hospitality template.
-
Enterprise Only
- Downloaded Hospitality Template from Valcre Online
- Set up the Hospitality Valuation Workbook in the Home sheet
-
Obtain a STR report from either Smith Travel or the business operator.
- You will want to use the Monthly Report
Table of Contents
Video
How-to Guide
Step 1: Choose the appropriate dropdowns and edits in the Supply & Demand W/Segmentation section that best match your scenario.
- Is the Subject Included in the Report - This question refers to whether the subject's information has been included in the Smith Travel Report you will be relying on. Choose whether or not it is included in the STR data to be imported.
-
How Many Years of History to Report - Select the number of historical years you want to highlight.
- Note: The default is three years, but you can choose a maximum of five years.
- Current Year - This is the year indicated in the STR report and will populate automatically after importing. If the date was not included or did not fill in automatically, you can manually add the date here.
-
Number of Segments to Report - Select the number of segments you want to report. The default is three segments, but you can utilize a maximum of eight segments.
- When you select Click Here to Show All Rows, you will see the Allocation for Subject’s Segments table update to the number selected in this field.
-
Segment Allocation Method:
There are two methods for allocation for the segment:- General Estimate for all Periods - The standard method used most commonly
-
Use % estimates for each Period - This method allows you to allocate separately for each period's segments.
- Example of using the % estimates for each Period: During reporting years where demand waivered significantly, you may need to make edits to the default settings. You can adjust your edits over time to resemble a more traditional allocation for the respective segment.
- Include Submarket - If you select Yes, the information in the Market Profile sheet will pull in the information provided there.
Step 2: Identify which type of STR report you will use in this analysis.
-
Trend Report: This is ordered from Smith Travel
- If using this type of report, see the Trend Report section of this guide
-
Operator Report: This is provided by the business operator, manager, or owner
- If using this type of report, see the Operator Report section of this guide.
Import the Trend Report
Step 1: Select Trend from the top of the Room Night Builder sheet.
Step 2: This will open your file finder on your computer. Select the appropriate report file to import into the Room Night Builder sheet.
You will notice it has set up the years and pulled in the information provided in the Smith Travel Report.
Additionally, when you navigate to the Datasets sheet, you will see that your report has also brought in all the fields in the Subjects Primary Data Set and set up the Primary Set table as well as some of the data for the Current Market Statistics table which are both within the Current Market Statistics section.
You will notice that the tables on the Set Trends sheet are also getting filled out.
Import the Operator Report
Step 1: Select Operator from the top of the Room Night Builder sheet.
Step 2: This will open your file finder on your computer. Select the appropriate report file to import into the Room Night Builder sheet.
You will notice it has set up the years and pulled in the information provided in the Smith Travel Report.
When you navigate to the Datasets sheet, you will see that this report has also brought in all the fields in the Subject Primary Data Set and set up the Primary Set table as well as some of the data for the Current Market Statistics table which are both within the Current Market Statistics section.
This also affects the Set Trends sheet, where the tables are beginning to set up.
Step 3: Review the table and make any changes you require
After you have imported your data, you will see that the Units and Days of the Year Open are all pre-populated based on the information from the report imported.
- Days of the Year Open - This field defaults to 365 days. This can be changed as needed by clicking into the cell and making the update.
- Annual Supply - This will automatically update to the correct number based on the Unit Count and Days of the Year Open input prior.
- Annual Demand - This section is for reporting historical occupancy, which, by default, is set to 80%, but you can change this by clicking into the field and changing the formula as required.
Step 4: Add Additional Assets or Sets (if needed).
- Step 4.1: Select Show All Rows
-
Step 4.2: Navigate to Subject2 Room Annual Supply to add an additional asset or navigate to Allocation for Set2 to add an additional set.
- Subject2 Room Annual Supply - This section is beneficial if you are doing a dual-branded asset; you can use this section to add information for the second brand.
- Allocation for Set2 - This section is beneficial if you need to do a second set to identify additional trends because you are appraising a hospitality building in an area with a highly dense hotel development.
Once you have completed all necessary information in the Room Night Builder sheet, you can move on to the Datasets sheet in the Hospitality Workbook.
For additional questions about setting up the Hospitality Workbook and using the Room Night Builder sheet in the Hospitality Valuation Workbook, please get in touch with Valcre Support using the Online Chat using Valcre Online or Valcre Mobile.