Category: Metrics

RGI (Revenue Generation Index)

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In short

RGI (Revenue Generation Index), also called RevPAR Index, compares your hotel's RevPAR to your competitive set's RevPAR. An RGI above 100 means you outperform the comp set; below 100 means you underperform.

Formula

RGI = (Your RevPAR / Comp Set RevPAR) × 100

Worked example

Your hotel: RevPAR €110. Your comp set's average RevPAR: €100. RGI = (110 / 100) × 100 = 110. You're capturing 110% of fair share — outperforming by 10%.

RGI (Revenue Generation Index)

RGI is the standard fair-share metric. It removes market effects (a city-wide event lifts everyone) and isolates whether your property is winning or losing share. STR-style benchmarking reports it weekly. Two ways to lift RGI: lift your own RevPAR through pricing and distribution, or shift to a stronger comp set. The first is real progress; the second is gaming the metric. RGI is most useful for properties in dense urban markets where comp sets are well-defined; rural and resort markets can have small or unstable comp sets that distort the index.

Why it matters

Absolute RevPAR is misleading without context — a 5% RevPAR drop in a market that dropped 10% means you gained share. RGI cuts through the noise.

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Frequently asked questions

Anything above 100 means you're outperforming. Sustained 110+ is excellent. Below 90 is a problem.

By the hotel itself, usually via STR Global or a similar provider. The comp set should be hotels guests genuinely consider as alternatives — same location, similar segment, similar price tier.

MPI (Market Penetration Index) compares your occupancy to the comp set. ARI (Average Rate Index) compares your ADR. RGI combines both — it's RevPAR vs comp set RevPAR.

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Written by

Maciej Dudziak

Maciej Dudziak

Co-founder

.NET developer with 10+ years of experience building scalable back-end systems. Specializes in .NET, Azure, and modern databases.

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Published: May 15, 2026