This article is the second of a three-part series that explores the rationale, methodology and results related to RevPAR-adjusted budgets. Adjusting budgets for a market's RevPAR performance is proposed as a far superior tool to measure management's performance, compared with unadjusted budgets. This second article introduces an example to illustrate how to perform the necessary RevPAR adjustments. To do so, four steps are identified. The first one is covered in this piece, while the remaining three will be the subject of the third and final part of this series.

About HVS

HVS is the world's leading consulting and valuation services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980, the company performs more than 4,500 assignments per year for virtually every major industry participant. HVS principals are regarded as the leading professionals in their respective regions of the globe. Through a worldwide network of over 50 offices staffed by 300 experienced industry professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. For further information regarding our expertise and specifics about our services, please visit www.hvs.com.