Smith Travel Research

Smith Travel Research
Name	Smith Travel Research
Trade name	STR
Type	Private
Industry	Hospitality analytics
Founded	1985
Founder	Randy R. Smith
Headquarters	Nashville, Tennessee
Products	Hotel performance data, benchmarking, analytics
Parent	CoStar Group

Smith Travel Research is a hospitality analytics firm that provides performance benchmarking, market intelligence, and data services for the lodging industry. Founded in the mid-1980s, the company compiles occupancy, average daily rate, and revenue per available room metrics used by hotel chains, owners, investors, and government agencies. STR's datasets and reports are widely cited across trade publications, investment research, real estate firms, and industry associations.

History

Founded in 1985 by Randy R. Smith, the company emerged amid consolidation in the Hilton Hotels-era lodging sector and the expansion of institutional real estate investment trusts such as Host Marriott Corporation and Equity Inns. Early clients included regional operators and franchisors like Marriott International, Choice Hotels International, and InterContinental Hotels Group. During the 1990s STR expanded internationally, opening offices to serve markets influenced by firms such as Accor, Hyatt Hotels Corporation, and Wyndham Hotels and Resorts. The company navigated economic events including the 1997 Asian financial crisis, the Global Financial Crisis of 2007–2008, and demand shocks following the September 11 attacks. In the 2010s STR developed partnerships with data platforms and listings portals including Expedia Group, Booking Holdings, and institutional investors like Blackstone Group. In 2019 STR became part of a larger public consolidation when acquired by CoStar Group, joining other firms serving commercial real estate and hospitality markets such as LoopNet and Apartment List.

Products and Services

STR offers a suite of products used by hotel operators like Hilton Worldwide Holdings, asset managers such as Goldman Sachs, and research publishers including PwC and Deloitte. Core offerings include the STAR Report, which benchmarks property performance against competitive sets used by brands like Sheraton, Holiday Inn, and Four Seasons Hotels and Resorts. Additional services include market-level reports, pipeline tracking leveraged by developers associated with Hines Interests Limited Partnership and Tishman Speyer, and data feeds integrated into property management systems from vendors like Oracle Corporation and Sabre Corporation. STR provides custom consulting for owners represented by firms such as CBRE Group and JLL, and delivers trend analytics consumed by trade media including Hotel News Now and financial outlets like The Wall Street Journal.

Methodology and Data Collection

STR aggregates room-level and property-level data submitted by hotels, franchisors, and management companies including IHG, Radisson Hotel Group, and independent owners. Methodological practices draw on standardized performance metrics—occupancy, Average Daily Rate (ADR), and Revenue per Available Room (RevPAR)—used in investor reports by entities such as Morgan Stanley and UBS. Data validation and quality assurance processes reference inventory controls familiar to companies like Sabre Hospitality Solutions and employ geographic definitions similar to market delineations used by U.S. Census Bureau statistical areas and tourism agencies like VisitBritain and Tourism Australia. STR also integrates transactional and distribution insights from channels operated by Airbnb, Inc. and metasearch aggregators such as Trivago to adjust for channel mix effects. Privacy and confidentiality standards align with corporate policies adopted by peers including Visa Inc. and Mastercard Incorporated when handling proprietary property-level submissions.

Market Impact and Industry Use

STR's benchmark data underpin performance evaluations used by franchisors including Best Western Hotels & Resorts and luxury groups like Mandarin Oriental. Investment decisions by real estate investors—such as The Blackstone Group and sovereign wealth funds like Government of Singapore Investment Corporation—often cite STR metrics in valuation models. STR reports inform strategic planning for destination marketing organizations exemplified by NYC & Company and Tourism Ireland, and are referenced in regulatory filings with agencies like the Securities and Exchange Commission. Academic research in hospitality management at institutions such as Cornell University and University of Nevada, Las Vegas frequently employs STR datasets for empirical studies. Major conferences including INTERVAL International and the International Hotel Investment Forum feature STR analyses in panels addressing revenue management, distribution strategy, and development pipelines.

Corporate Structure and Ownership

Originally privately held, the company grew through regional offices in Europe, Asia, and the Americas, working with national tourism boards like Visit California and corporate clients such as AccorHotels. In 2019 ownership transferred when acquired by CoStar Group, integrating STR into a portfolio that includes commercial real estate information services such as LoopNet and Apartments.com. STR operates as a subsidiary with executive ties to hospitality veterans who have backgrounds at firms like Marriott Vacations Worldwide and Host Hotels & Resorts. Its corporate governance interfaces with investment banks and auditors such as Ernst & Young and KPMG during financial reporting and compliance routines.

Criticisms and Controversies

Critiques of STR have focused on representativeness and potential sampling bias when competitive sets are self-selected by property managers, a concern echoed in debates involving channel data from Expedia Group and Airbnb, Inc.. Analysts at firms like Moody's Investors Service and S&P Global Ratings have queried reliance on ADR and RevPAR without adjustments for ancillary revenue streams prioritized by brands such as Hilton and Accor. Privacy advocates and independent operators, some aligned with trade groups like the American Hotel & Lodging Association and regional associations, have raised questions about confidentiality and data aggregation practices. Additionally, market commentators and journalists from outlets including Bloomberg L.P. and Forbes have scrutinized consolidation in commercial real estate information markets following the CoStar Group acquisition, debating competitive effects and platform integration.

Category:Hospitality companies