Performance & revenue
Comp set
Also written: competitive set, compset
What Comp set means
A comp set is a selected group of four to six peer hotels that a property directly competes with for guests based on location, price, amenities, and market positioning. It serves as the primary benchmark for assessing relative market share, pricing effectiveness, and overall performance.
Formula
RevPAR Index (RGI) = (Subject Hotel RevPAR / Comp Set Average RevPAR) × 100
How it is used
Revenue managers and asset managers evaluate their hotel's performance against the comp set using STR reports to track metrics like RevPAR Index (RGI), Occupancy Index (MPI), and ADR Index (ARI). If RGI falls below 100, the hotel is underperforming its peers, triggering tactical adjustments in pricing, distribution channels, or marketing spend. Owners and lenders also use comp set data to evaluate management performance, validate underwriting assumptions for acquisitions, and set executive incentive targets. Selecting the right comp set ensures operational benchmarks reflect true market competition rather than aspirational or underclass peers.
Worked example
A hotel achieves a RevPAR of $120, while its five-property comp set averages a RevPAR of $100 for the same period. The hotel's RGI is calculated as ($120 / $100) × 100 = 120. This indicates the property is capturing 20% more than its fair share of market revenue relative to its peer group.
Common mistake
Including properties that are out of your hotel's class, or changing the group frequently to artificially inflate performance indices, distorts commercial decision-making.
Related terms
Frequently asked
+What does Comp set mean in a hotel?
A comp set is a selected group of four to six peer hotels that a property directly competes with for guests based on location, price, amenities, and market positioning. It serves as the primary benchmark for assessing relative market share, pricing effectiveness, and overall performance.
+How is Comp set calculated?
RevPAR Index (RGI) = (Subject Hotel RevPAR / Comp Set Average RevPAR) × 100
+What is an example of Comp set?
A hotel achieves a RevPAR of $120, while its five-property comp set averages a RevPAR of $100 for the same period. The hotel's RGI is calculated as ($120 / $100) × 100 = 120. This indicates the property is capturing 20% more than its fair share of market revenue relative to its peer group.
+What is the most common mistake with Comp set?
Including properties that are out of your hotel's class, or changing the group frequently to artificially inflate performance indices, distorts commercial decision-making.