Which of the following metrics helps assess a hotel's performance in relation to competitors?

The RevPAR index is a critical metric used to assess a hotel's performance relative to its competitors. It combines the average daily rate (ADR) and the occupancy rate into one figure, allowing hotels to evaluate how well they are performing in generating revenue compared to similar properties in the market. By comparing a hotel's RevPAR index against the indexes of competing hotels, operators can identify their market position, track performance trends, and make informed pricing and operational decisions.

While occupancy rate and average daily rate are important metrics, they do not inherently account for competitive positioning. The occupancy rate measures the proportion of available rooms that are sold, and ADR reflects the average revenue earned per room sold. However, neither metric on its own offers insights into how a hotel is performing relative to its competitors.

Customer satisfaction scores are important for understanding guest experiences and loyalty, but they do not provide direct comparisons of financial performance among competitors. Therefore, using the RevPAR index allows hotel managers and owners to gauge their effectiveness in the broader market context.