An index designed to measure a hotel’s share of the segment’s (comp set, market, tract, etc.) demand (demand = rooms sold).
(Hotel Occupancy / Segment Occupancy) x 100 = Occupancy Index
Fair share can be thought of as the subject hotel’s “piece of the pie” in the market. For example, if there are 1,000 rooms in the competitive set and the subject hotel has 100 rooms, the subject hotel’s fair share is 10.00%. If the subject hotel accounts for 10.00% of the room nights generated within the competitive set in a given time period, the subject hotel’s actual share equals its fair share, giving it an occupancy index of 100%.