How to Achieve a Revpar 10% Higher than Your Comp Set
This is an easy one but worth mentioning:
Research has shown that hotels with an ADR significantly lower than that of their competitive set have an inferior Rev-PAR performance (Canina and Enz 2008; Enz and Canina 2004).
This relationship has been shown to hold true across all hotel market levels. For example, in the luxury market, hotels that have an ADR that is higher than their competitive set have the same or slightly lower occupancies, but have a 8- to 14-percent higher RevPAR than their competitive set.
Conversely, hotels that have a lower ADR than their competitive set have about the same to slightly higher occupancy levels, but report a RevPARS of 3- to 9-percent lower than their competitive set (Canina and Enz 2008).
Take-away: Figure out who your real comp set is and then actively manage your ADR to be above them. Measure, rinse, repeat until you get it right.