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Investors consider operational aspects of a hotel

Hotelier Magazine

Financial Benchmarks The hotel industry uses many financial benchmarks to measure success, including Average Daily Rate (ADR), RevPAR, occupancy and Market Penetration Index (MPI). Investing in a hotel means you’re investing in an ongoing operating business, so understanding how to efficiently and profitability manage it is critical.

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Hotel RevPAR Formula: Measure Performance in 2025

Hotelogix

For example, a hotel with 100 operational rooms in a 30-day month has 3,000 available room nights. Market Penetration Index (MPI) MPI compares your property’s occupancy to your competitive set. It reveals how well you are performing in terms of capturing demand in your market segment.