Hotel Revenue Glossary · Benchmarking

RevPAR Index (RPI)

Another name for RGI (Revenue Generation Index). Your hotel's RevPAR divided by the competitive set's average RevPAR, multiplied by 100. An RPI above 100 means you are outperforming your comp set on a per-available-room basis.

Why it matters: RPI is the single most-watched competitive benchmark in the industry. Owners and asset managers evaluate management performance primarily through RPI trends because it captures both volume and rate competitiveness in a single number.

Worked example: July RevPAR is A$168 and the five-hotel competitive set averages A$152, so the index is 168 / 152 x 100 = 111. Break it apart: occupancy 79% against the set's 84% gives an occupancy index of 94, while ADR A$213 against A$181 gives a rate index of 118. You are winning decisively on rate and handing back volume. Match the set on occupancy at that same A$213 and RevPAR reaches A$179, an index of 118.

Common mistake: Chasing the index up by discounting. Cutting rate lifts the occupancy component fast, so the headline improves for a month while the rate component sinks and the comp set, watching your rates, follows you down. Read occupancy and rate separately every time; one number cannot tell you which lever moved.

All glossary terms RGI (Revenue Generation Index) RevPAR (Revenue Per Available Room) Comp Set (Competitive Set)