A RevPAR (yield) measures a ’s of their segment’s (competitive set, market, submarket, etc.) revenue per available room. If a hotel is capturing its fair market share, the will be 100; if capturing less than its fair market share, a hotel’s index will be less than 100; and if capturing more than its fair market share, a hotel’s index will be greater than 100.

RevPAR is calculated:
( RevPAR / Segment RevPAR) x 100 = RevPAR

Fair share can be thought of as the subject ’s “piece of the pie” in the market. For example, if the subject hotel’s RevPAR is $50 and the RevPAR of its is $50, the subject hotel’s would total 100. If the subject hotel’s RevPAR totaled $60, its index would be 120, which indicates that the subject hotel has captured more than its fair share. If the subject hotel’s RevPAR totaled $40, its index would be 80, which indicates that the subject hotel has captured less than its fair share.

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