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Market Penetration Index Calculator

Compare your occupancy and RevPAR performance against your STR comp set.

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Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.

Try a scenario

Click to load — tweak from there.

Inputs

Result

Revenue Generation Index (RGI)

99.0

Market Penetration Index (MPI)

107.6

Average Rate Index (ARI)

92.0

Your RevPAR

$97.98

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How to use this

  1. 1Enter your occupancy (%).
  2. 2Enter comp set occupancy (%).
  3. 3Enter your adr ($).
  4. 4Enter comp set adr ($).
  5. 5Read your revenue generation index (rgi) on the right — it updates as you type.
  6. 6Hit Share to keep the scenario or send it to someone.

About this calculator

Penetration indices from STR (now CoStar) reports tell you whether a hotel is over- or under-performing its fair share of the competitive market, independent of whether the whole market is up or down. MPI (market penetration index) compares your occupancy to the comp set's occupancy; ARI (average rate index) compares ADR; RGI (revenue generation index) compares RevPAR. An index of 100 means you're performing exactly at your fair share; above 100 means you're outperforming. This calculator computes all three from your property's and the comp set's occupancy and ADR figures.

FormulaMPI = (Your Occupancy ÷ Comp Set Occupancy) × 100. ARI = (Your ADR ÷ Comp Set ADR) × 100. RGI = (Your RevPAR ÷ Comp Set RevPAR) × 100.

Worked example

Using the values the calculator loads with:

Inputs

  • Your occupancy: 71 %
  • Comp set occupancy: 66 %
  • Your ADR: 138 $
  • Comp set ADR: 150 $

Results

  • Revenue Generation Index (RGI): 99
  • Market Penetration Index (MPI): 107.6
  • Average Rate Index (ARI): 92
  • Your RevPAR: $97.98

What each field means

Inputs

Your occupancy (%)
The your occupancy used in the calculation, measured in %. Starts at 71 % so you have a working example on load. Accepted range: 0–100 %.
Comp set occupancy (%)
The comp set occupancy used in the calculation, measured in %. Starts at 66 % so you have a working example on load. Accepted range: 0–100 %.
Your ADR ($)
The your adr used in the calculation, measured in $. Starts at 138 $ so you have a working example on load.
Comp set ADR ($)
The comp set adr used in the calculation, measured in $. Starts at 150 $ so you have a working example on load.

Results

Revenue Generation Index (RGI)
Returned as a decimal number and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Market Penetration Index (MPI)
Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Average Rate Index (ARI)
Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Your RevPAR
Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.

FAQ

What does an RGI of 95 actually mean?

It means your property generated 95% of the RevPAR its fair market share would predict — you're underperforming the comp set by 5%. Fair share is defined by your proportion of total comp-set room inventory, so RGI isolates performance from raw size.

Should I focus on MPI or ARI if RGI is low?

Decompose it: if MPI is strong (100+) but ARI is weak, you're winning occupancy by underpricing — you likely have room to raise rate. If ARI is strong but MPI is weak, you're pricing at or above market but losing bookings, which usually points to distribution, reviews, or product issues.

Where do I get comp set occupancy and ADR numbers?

Subscribe to an STR/CoStar comp-set report, which benchmarks your property against 4-8 competitors you select and STR approves. Independent hotels without an STR subscription can approximate using visible OTA pricing and local tourism board occupancy data, though it's far less precise.

How often should penetration indices be reviewed?

Monthly at minimum, tied to your STR report cycle, with a rolling 12-month trailing view to smooth out one-off events like a competitor's renovation closure or a local convention that temporarily skews the comp set.

Accuracy and limitations

  • Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
  • Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
  • This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.

Related tools

Hotel RevPAR Calculator

Revenue per available room from occupancy and ADR, or from room revenue directly.

Hotel ADR & Occupancy Calculator

Back into average daily rate and occupancy from rooms sold and revenue.

Hotel GOPPAR Calculator

Gross operating profit per available room — the profitability answer RevPAR can't give.

Cite this calculator

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APA
RevenueLab. (2026). Hotel Market Penetration Index Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/hotel-star-report-penetration-index
HTML
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/hotel-star-report-penetration-index" target="_blank" rel="noopener">Hotel Market Penetration Index Calculator — RevenueLab</a> (2026).</p>
Markdown
Source: [Hotel Market Penetration Index Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/hotel-star-report-penetration-index) (2026).
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