Hotel Revenue Glossary · Benchmarking

RGI (Revenue Generation Index)

Your hotel's RevPAR divided by the comp set's average RevPAR, times 100. RGI is the ultimate competitive metric — it captures both volume and rate performance in a single index.

Why it matters: RGI is the bottom-line competitive metric. Above 100 means you're generating more revenue per available room than your competitors. It's the number owners, asset managers, and management companies focus on most.

Worked example: Comp set: A$200 ADR at 75% - RevPAR A$150. You: A$216 at 72% - RevPAR A$155.52. RGI is 155.52 / 150 x 100 = 103.7. Check it against the parts: ARI is 216 / 200 x 100 = 108, MPI is 72 / 75 x 100 = 96, and 108 x 96 / 100 returns 103.7 again. Rate is carrying you while volume drags; on 130 rooms those 3.7 points are 130 x A$5.52 = A$717.60 a night.

Common mistake: Setting an RGI target without saying how it is to be earned. A move to 105 can come from discounting into volume or from holding rate and losing share, and those two point every nightly decision in opposite directions. Name the MPI and the ARI you want; RGI is the result, not the instruction.

All glossary terms MPI (Market Penetration Index) ARI (Average Rate Index) RevPAR (Revenue Per Available Room)