1.) What is ADR? How is ADR calculated? Why is ADR important in the hospitality industry? Please explain answer.© BrainMass Inc. brainmass.com June 4, 2020, 2:19 am ad1c9bdddf
1.) What is ADR? How is ADR calculated? Why is ADR important in the hospitality industry? Please explain answer.
ADR is the measure of the 'average daily rate' paid for hotel rooms - calculated by dividing the revenue gained by the paid room which is calculated by the following formula: ADR - room revenue/ rooms paid).
ADR is important in the hospitality industry because it measures performance and profitability. It can be calculated by groups of rooms or groups of hotels. An ADR index is the measurement of the hotel's ADR performance. The performance is measured against market, submarket divided by tract, and competition. An ADR Index greater than 100 means it is more than a fair share of the aggregated group's ADR performance (The HNN editorial staff, 2010). The ADR Index is calculated by the following formula: ADR Index = (ADR/Aggregated ...
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