RGI (Revenue Generation Index)

RGI (Revenue Generation Index), sometimes called RevPAR Index, measures a hotel's RevPAR performance against its competitive set. It's the most holistic of the STR indexes because it captures both rate and occupancy performance in a single number.

Formula

RGI = (Hotel RevPAR / Comp Set RevPAR) × 100

Interpretation

• RGI = 100 — The hotel is getting its fair share of market RevPAR.
• RGI > 100 — Outperforming the comp set on RevPAR.
• RGI < 100 — Underperforming the comp set on RevPAR.

Why it matters

RGI ties together MPI (occupancy index) and ARI (rate index). If MPI is high but ARI is low, RGI tells you whether the trade-off is actually paying off. Many hotel management contracts and incentive fees are tied directly to RGI performance over time.