Market Pricing Index / Occupancy Index

Measures a hotel’s Occupancy (OCC) performance relative to an collective alliance of hotels (i.e., competitive set, market, submarket). If all stuff are equal, a property’s OCC Index or MPI is 100 compared to the aggregated group of hotels (historically explained as “fair share”). A MPI bigger than 100 represents more than the anticipated share of the aggregated group’s Occupancy presentation. On the contrary, a MPI less than 100 reflects less than the predictable share of the aggregated group’s Occupancy performance.

To compute MPI: (Subject hotel OCC / Aggregated group of hotels’ OCC) x 100 = OCC Index/MPI

For instance, if the subject hotel’s OCC is 80%, and the OCC of its competitive set is 80%, the subject hotel’s MPI is 100. If the subject hotel’s OCC totals 96%, its MPI is 120, representing the hotel has confined more than its probable share. If the subject hotel’s OCC totals 64%, its index is 80, indicating the hotel has captured less than its expected share.