More information on how HAIRI is constructed


The HAIRI index is a measure of average annual returns on investment in hosted accommodation. Its objective is to be a benchmark of performance. The initial sample set comprises hotels across a number of leading European cities.

HAIRI can be used by:

  • Investors exposed to multiple markets and asset classes who need to monitor the performance of their portfolios and assess their asset-allocation decisions.
  • Investors who need to benchmark the financial performance of specific assets.
  • Asset managers who need to benchmark the performance of their operating decisions against the rest of the market.

In other words: it is an indicator of “what the market is”.

The index covers market-level returns by combining average incomes generated by accommodation property with changes in capital values of assets. It aggregates data from all rooms advertised on leading online travel agent platforms and all hotel asset transactions that occur in a given period to achieve the best possible coverage and accuracy for all markets. It is adjusted for differences between individual hotels and their locations. By combining asset-focused operating measures with location-based value calculations the index can capture the influence of the real estate market, operating performance and hotel market trends.

The main advantage of the index is the quantity of data that is analysed for each market. The traditional three issues of investing in real estate markets (liquidity, heterogeneity and lot size) are addressed by examining tens of millions of room rates but a relatively small number of asset-level transactions.

The reported return in HAIRI is a hypothetical concept and reports the total return on investment that would be achieved by an investor who purchased a diversified portfolio of hotels at the beginning of the year and sold it at its end.

The income return is the net income generated by the asset as a percentage of the purchase price.

Capital value return is the percentage growth in asset value over the reported period.

The index does not account for transaction costs or corporate taxes, and all figures are based on domestic currencies.

Although the overall index it does not allow somebody to identify the performance of individual assets or portfolios that are not fully diversified, this information can be obtained from our database.