Hotel Revenue Glossary · Benchmarking

Comp Set (Competitive Set)

A defined group of hotels that are considered direct competitors for the same guests. Typically 4-6 properties selected based on proximity, product quality, price range, and target market similarity.

Why it matters: Your comp set is who you measure yourself against. Performance indexes (MPI, ARI, RGI) are only meaningful when measured against the right competitors. Choosing the wrong comp set can lead to misleading conclusions about market position.

Worked example: Your five-hotel comp set runs A$196 ADR at 78% - RevPAR A$152.88. You run A$212 at 71%, RevPAR A$150.52, so RGI is 150.52 / 152.88 x 100 = 98.5. Now swap one competitor charging A$226 for a new opening at A$150: the set ADR falls by 76 / 5 = A$15.20 to A$180.80, and your ARI moves from 108 to 117 with nothing at your hotel having changed.

Common mistake: Building the comp set from hotels you admire rather than hotels you lose bookings to. If the five-star up the road never appears in your lost-business reasons and never turns up in the same rate-shop searches, it is not a competitor - it is a benchmark that makes every index look bad and teaches you nothing.

All glossary terms MPI (Market Penetration Index) ARI (Average Rate Index) RGI (Revenue Generation Index)