RevPAR Index Calculator
RevPAR Index (RGI) benchmarks your performance against competitors. A score of 100 means you're getting your fair share of the market. Above 100? You're winning. Below? There's work to do.
RevPAR Index Calculator
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Formula
RevPAR Index = (Your RevPAR ÷ Comp Set RevPAR) × 100How to Improve
- Track RGI trends over months, not individual days—single-day fluctuations are noise
- Analyze which specific competitors you're losing to and study their strategies
- Separate your RGI into ARI (ADR Index) and MPI (Occupancy Index) to diagnose whether you're losing on rate or demand
- Review your comp set annually—make sure it still represents your true competition
- Focus on high-index-potential periods (weekends, events) where you have the best chance to outperform
Industry Benchmarks
| Hotel Type | Low | Average | High |
|---|---|---|---|
| Underperforming | 70 | 85 | 95 |
| Fair Share | 95 | 100 | 105 |
| Outperforming | 105 | 115 | 130 |
| Market Leader | 130 | 145 | 170 |
What is RevPAR Index (RGI)?
RevPAR Index—also called RGI (Revenue Generation Index)—measures how your hotel's RevPAR compares to a competitive set of similar hotels. It's expressed as an index where 100 represents your 'fair share' of the market.
If your RGI is 100, you're performing exactly at market average. An RGI of 110 means you're generating 10% more revenue per available room than your competitive set. An RGI of 90 means you're underperforming by 10%.
RGI is the hotel industry's standard for competitive benchmarking. STR (Smith Travel Research) provides comp set reports that most hotels use. Your RGI tells you whether your revenue management strategies are working better or worse than your competitors'.
How to Calculate RevPAR Index
Divide your RevPAR by your competitive set's average RevPAR, then multiply by 100. The competitive set should include 5-10 hotels that genuinely compete for the same guests—similar star rating, location, and positioning.
Most hotels get comp set data from STR reports, which anonymously aggregate competitor performance. Without STR, you can estimate using published rates and estimated occupancy, but accuracy suffers.
Worked Example
- 1.Your hotel's RevPAR last month: $92
- 2.Your comp set's average RevPAR: $85
- 3.RevPAR Index = ($92 ÷ $85) × 100
Your RGI is 108.2 — you're outperforming competitors by 8.2%
Why RGI is the Ultimate Competitive Benchmark
RGI answers the critical question: 'Are we winning or losing in our market?' Your absolute RevPAR might be up 5%, but if competitors are up 10%, you're actually falling behind. RGI reveals this competitive reality.
RGI is also valuable because it normalizes for market conditions. In a recession, everyone's RevPAR falls. But your RGI reveals whether you're weathering the storm better or worse than competitors. Similarly, during boom times, it shows if you're capturing your share of growth.
Investors and management companies care deeply about RGI. A hotel consistently below 100 has a problem—either operational, positioning, or competitive. Sustained RGI above 100 indicates a well-managed property that's winning its market.
Limitations of RGI
- •Comp set selection is crucial—the wrong competitors make RGI meaningless
- •RGI doesn't explain WHY you're outperforming or underperforming
- •Small markets with few competitors produce volatile, less reliable indexes
- •New hotels or recent renovations may skew comp set averages
- •RGI ignores profitability—you might outperform on revenue but underperform on profit
Related Hotel Metrics
ARI (ADR Index)
Compares your ADR to comp set. Shows if you're winning on rate. RGI = ARI × MPI ÷ 100.
MPI (Market Penetration Index)
Compares your occupancy to comp set. Shows if you're winning on demand capture.
RevPAR
Your absolute Revenue Per Available Room—the numerator in the RGI calculation.
Fair Share
Your proportional share of comp set rooms. 100 rooms in a 1,000-room comp set = 10% fair share.
Frequently Asked Questions
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