Hotel RevPAR Index (RGI) Calculator

Hotel Asset Management & Benchmarking

Understanding STR Performance Indices

Key revenue management principles governing competitive performance:

• The 100-Point Index Parity Benchmark: An index of 100.0 represents perfect fair share. An RGI of 115 means the hotel captures 15% more RevPAR than its competitive fair share; an RGI of 85 indicates a 15% revenue deficit.
• The RGI Triad Equation: $RGI = rac{MPI imes ARI}{100}$. High RGI can be achieved via Rate Leadership ($ARI > 100, MPI approx 100$) or Volume Penetration ($MPI > 100, ARI approx 100$). Rate-driven RGI typically yields superior GOPPAR flow-through due to lower marginal operating wear.
• Fair Share vs Revenue Share: If a hotel represents 16.7% of competitive rooms but captures 21.0% of total compset revenue, it enjoys a powerful brand pricing premium and superior market distribution.
• OTA Commission & Channel Yield: True net profit also depends on distribution cost. Compare direct bookings vs intermediaries in the Hotel OTA Commission Lab.

Explore bottom-line hotel operating profit in the Hotel GOPPAR & TrevPAR Lab.

Mathematical Formulation

Hotel index & yield equations

ext{RevPAR} = ext{Occupancy %} imes ext{ADR} = rac{ ext{Room Revenue}}{ ext{Available Room Nights}}

ext{MPI (Market Penetration Index)} = rac{ ext{Subject Occupancy %}}{ ext{CompSet Occupancy %}} imes 100

ext{ARI (Average Rate Index)} = rac{ ext{Subject ADR}}{ ext{CompSet ADR}} imes 100

ext{RGI (Revenue Generation Index)} = rac{ ext{Subject RevPAR}}{ ext{CompSet RevPAR}} imes 100 = rac{ ext{MPI} imes ext{ARI}}{100}

ext{Capacity Fair Share %} = rac{ ext{Subject Available Rooms}}{ ext{Total CompSet + Subject Rooms}} imes 100

ext{Revenue Premium} = ext{Subject Actual Revenue} - ( ext{Total Market Revenue} imes ext{Fair Share %})

Model hotel room pricing dynamics in the Hotel Revenue Management & RevPAR Lab.