RevPAR Index (Market Penetration) Calculator
RevPAR index = your RevPAR ÷ comp set RevPAR × 100
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TL;DR RevPAR index = your RevPAR ÷ competitive set RevPAR × 100. An index of 100 means you capture exactly your fair share of market revenue; above 100 means you outperform your comp set. At 72% occupancy and a $145 ADR against a $98 comp set, the index is 106.5.
Your RevPAR
$104.40
RevPAR index
106.5
The formula
Your RevPAR = ADR × occupancy ÷ 100 · RevPAR index = your RevPAR ÷ comp set RevPAR × 100
Worked example
A hotel runs 72% occupancy at a $145 ADR. Your RevPAR = $145 × 0.72 = $104.40. The competitive set's RevPAR is $98, so the RevPAR index = $104.40 ÷ $98 × 100 = 106.5. The hotel captures about 6.5% more than its fair share of market revenue.
How to read the index (indicative bands)
| RevPAR index | Interpretation |
|---|---|
| Below 85 | Significant underperformance |
| 85 – 95 | Below fair share |
| 95 – 105 | At fair share |
| 105 – 115 | Outperforming |
| Above 115 | Market leader |
Bands are indicative and depend on how the competitive set is drawn. For preliminary planning only; not an offer of credit.
Frequently asked questions
What is a RevPAR index?
A RevPAR index (also called market penetration index or RGI) compares your revenue per available room to your competitive set's. It is your RevPAR divided by the comp set RevPAR, times 100. It comes straight from your STR or CoStar report and tells you whether you are winning or losing share.
What is fair share?
Fair share means capturing exactly the revenue your room count entitles you to relative to the comp set. A RevPAR index of 100 is fair share. Above 100 you take more than your share of market revenue; below 100 the comp set is taking yours.
What RevPAR index do lenders and brands want to see?
Generally 100 or better for a stabilized asset. Lenders read a sustained index below fair share as an operational or product problem. The exception is a value-add story: PIP or repositioning deals often start well below 100, and the underwriting case is the projected climb after renovation.
How do you improve a RevPAR index?
Diagnose whether the gap is occupancy or rate by comparing your occupancy and ADR indexes separately. Then work the weak lever: better revenue management and channel mix for rate, group and negotiated business for occupancy, and product fixes (renovation, brand change, service scores) when guests are choosing competitors outright.