notitur.com August 24, 2026

Revenue

RevPAR index

The RevPAR index shows how a hotel performs against its competitive set. It is your RevPAR divided by the compset RevPAR, times 100. Above 100 means the hotel captures more than its fair share of the market.

Example An index of 110 means the hotel earns 10 percent more RevPAR than its rivals on average.

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FAQ

What is RevPAR index?
RevPAR index (RGI) is a metric that compares a hotel's performance against its direct competition. A value above 100 means the hotel captures more revenue per available room than its fair market share, for example an RGI of 120 indicates 20% above the competitive set average.
How is RevPAR index calculated?
It is calculated by dividing the hotel's RevPAR by the average RevPAR of the competitive set, then multiplying by 100. For instance, if your hotel RevPAR is $150 and the market average is $125, your RGI would be 120, showing a strong outperformance.
What is the purpose of RevPAR index and how is it different from simple RevPAR?
RevPAR index measures relative market share performance, while simple RevPAR only shows absolute revenue efficiency. It helps identify if a hotel is gaining or losing ground: an RGI below 100 signals that the hotel trails its direct competitors in revenue generation.

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