How is the RevPAR Index calculated for Embassy Suites By Hilton hotels?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
RevPAR Index - The RevPAR Index measures a hotel's RevPAR (revenue per available room) relative to an aggregated grouping of hotels (competitive set, market, tract, etc.). An index of 100 represents a fair share compared to the aggregated group of hotels. An index greater than 100 represents more than fair share of the aggregated group's performance. RevPAR Index is calculated as follows:
(Hotel RevPAR / Comp Set RevPAR) x 100 = RevPAR Index.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 87–91)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the RevPAR Index is a metric used to evaluate a hotel's revenue per available room (RevPAR) in comparison to a group of similar hotels, such as its competitive set, the market it's in, or a specific tract. The index provides a benchmark to understand how well a hotel is performing relative to its peers. A score of 100 indicates that the hotel is capturing a fair share of revenue compared to the aggregated group. An index above 100 suggests the hotel is outperforming its competitive set, capturing more than its fair share.
The RevPAR Index is calculated using a specific formula: (Hotel RevPAR / Comp Set RevPAR) x 100 = RevPAR Index. This calculation divides the RevPAR of the specific Embassy Suites By Hilton hotel by the RevPAR of its competitive set and then multiplies the result by 100 to create the index. The competitive set data is provided by STR, LLC, an independent research firm that gathers information directly from hotel chains and individual properties. Embassy Suites By Hilton does not audit or independently verify this information.
It's important to note that the competitive set is identified by each Embassy Suites By Hilton hotel, and generally includes at least three competitive hotels. The data from STR is also subject to a weighting process called "portfolio weighting," where the available rooms (supply) of the competitive set are adjusted to match the room count of the subject property. This weighting ensures a more accurate comparison when calculating the brand performance aggregates. The FDD provides RevPAR Index data for comparable hotels, including both company-managed and franchisee-managed locations, allowing prospective franchisees to benchmark potential performance.