Average room rate
Fundamental analysisAlso called: ARR, ADR, Average daily rate
Room revenue divided by the number of room nights sold.
In plain terms
A hotel’s pricing power. Rate increases fall almost entirely to profit.
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RevPAR
Fundamental analysisAlso called: Revenue per available room
Revenue per available room: occupancy multiplied by the average room rate.
In plain terms
The headline hotel measure, combining how full a hotel is with what each occupied room pays.