Fair share describes how a hotel is performing compared with its competitive set. It can be assessed using Occupancy, Average Daily Rate (ADR) and Revenue per Available Room (RevPAR).
An index of 100 means the hotel is performing at the same level as its competitive set for that measure. An index above 100 indicates the hotel is capturing more than its fair share, while an index below 100 indicates it is capturing less than its fair share.
For example, if the subject hotel’s ADR is $50 and the ADR of its competitive set is also $50, the hotel’s ADR index is 100. If the hotel’s ADR is $60 compared with the competitive set’s $50, the index is 120, indicating performance above fair share. If its ADR is $40, the index is 80, indicating performance below fair share.
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