The short answer: RevPAR tells you how your property performed in isolation. RevPAR Index tells you how your property performed against the market it actually competes in — which is the only comparison that explains whether your strategy worked.
The two numbers, in one paragraph each
RevPAR — revenue per available room — is calculated by dividing your total room revenue by your total available room nights for a period. It is your absolute performance number.
RevPAR Index (RGI) — RevPAR Generation Index — is calculated by dividing your RevPAR by the average RevPAR of your STR competitive set, then multiplying by 100. A RevPAR Index of 112 means your property earned 12% more RevPAR than your comp set on average for the period.
Why Index is the more useful number
Your absolute RevPAR can go up because the market went up. It can go down because the market went down. Neither movement tells you anything about whether your strategy worked. Index normalizes the demand environment out of the picture.
Three traps to avoid when reading the Index
1. The comp set must be honest
STR will accept whatever five properties you submit. We routinely recommend a comp-set revision during onboarding.
2. Index needs a trailing window
A single month’s Index can move 5–10 points on noise. Read the rolling three-month and rolling twelve-month Index alongside.
3. The ADR Index and Occupancy Index together matter
ADR Index up means your strategy is monetizing demand. Occupancy Index up means your strategy is capturing demand. Both is the goal.
What ‘good’ looks like
- Below 95 — underperforming the market materially
- 95–100 — in line with the market
- 100–110 — winning share against the market
- 110+ — dominating, or the comp set is wrong
The Barnhill standard
Every Barnhill engagement reports monthly against the STR comp set selected with ownership during onboarding. If the Index is not moving in the direction we said it would, we say so first.
Want this format applied to your property? Schedule a 30-minute discovery call.