Market Penetration Index

Market Penetration Index or Occupancy Index: measure’s a hotel’s performance relative to an aggregated grouping of hotels (e.g., competitive set, market, submarket); if all things are equal, a property’s MPI or Occ Index is 100 compared to the aggregated group of hotels (historically described as “fair share”); an MPI greater than 100 represents more than the expected share of the aggregated group’s occupancy performance; an MPI below 100 reflects less than the expected share of the aggregated group’s occupancy performance The calculation is (Hotel Occupancy / Comp Set Occupancy) x 100