Fair Share

Definition

Fair share is the slice of market demand a hotel “should” capture based on capacity alone — its rooms as a percentage of total compset rooms. A 100-room hotel in a 500-room compset has a 20% fair share.

What it tells you

Fair share is the neutral baseline behind benchmarking indexes: MPI is your actual share of occupied rooms divided by your fair share. Capturing 23% of the set’s room nights on a 20% fair share is an MPI of 115 — you’re winning volume; exactly fair share is MPI 100.

How to track it

Capacity share comes from compset room counts; actual share requires a benchmarking exchange (STR or equivalent), since competitor occupancy isn’t public. Most reports skip the raw shares and give you the ratio directly as MPI and RGI.

Where it fits

The conceptual foundation of index benchmarking — MPI, ARI, and RGI all answer “are we getting more or less than our fair share?” rather than “did we beat our own budget?” Fair share is the fourth layer of hotel market intelligence — the one that grades you rather than the competitors.