Measures a hotel’s RevPAR performance relative to an aggregated grouping of hotels (i.e., competitive set, market or submarket, etc.). If all things are equal, a property’s RevPAR Index, or RGI, is 100, compared to the aggregated group of hotels. Historically, this also is described as “fair share.”
A RGI greater than 100 represents more than the expected share of the aggregated group’s RevPAR performance. Conversely, a RGI below 100 reflects less than the expected share of the aggregated group’s RevPAR performance.
To calculate RGI: (Subject hotel RevPAR / Aggregated group of hotels’ RevPAR) x 100 = RevPAR Index
For example, if the subject hotel’s RevPAR is $50, and the RevPAR of its competitive set is $50, the subject hotel’s RGI is a total of 100. If the subject hotel’s RevPAR totals $60, its index is 120, indicating the hotel has captured more than its expected share. If the subject hotel’s RevPAR totals $40, its RGI is 80, indicating the hotel has captured less than its expected share.
