Hotels/motels use a couple of comparative measures to judge performance. The basic KPI's (Key Performance Indicator) are known as ADR and RevPar. Let's take a look:

ADR - Average Daily Rate - is exactly what it says the avg revenue earned divided by the # of rooms sold. This can be viewed as a single night, an average of a specific day of the week and/or viewed over a long term:

Ex. Nightly revenue of $1500 for 10 rooms rented = ADR of $150
     or  yearly revenue of $520,000 for 4000 rooms = ADR of $130

REVPAR - Revenue Per Available Room - calculated either as Total Room Revenue divided by available rooms  or ADR X Occ Rate:

Ex. Nightly revenue divided by 15 rooms (even if only 10 rented) = $100
     or ADR of $150 X occ rate of 67% = $100

Both terms are useful but REVPAR presents a better comparative picture because it incorporates the occupancy rate of the motel.

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Lots of work in progress. Clients should have received and reviewed their small tract land studies by this week. Ag Mkt land studies are complete and Residential Depreciation is underway...  

Expect to receive forms and letters for gathering Cap Rate info in the next day or so!!
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