Remove Average Daily Rate Remove Market Penetration Remove ROI
article thumbnail

Hotel RevPAR Formula: Measure Performance in 2025

Hotelogix

Average Daily Rate (ADR) ADR shows the average income earned from rooms sold, offering insight into pricing effectiveness. It helps hoteliers benchmark revenue performance and adjust room rates depending on seasonality and competition.   This KPI is essential for owners and investors tracking ROI.

article thumbnail

Investors consider operational aspects of a hotel

Hotelier Magazine

Financial Benchmarks The hotel industry uses many financial benchmarks to measure success, including Average Daily Rate (ADR), RevPAR, occupancy and Market Penetration Index (MPI). But how do you measure this, and minimize the risks associated with any real-estate investment? We’re listening to hotel comments.