FYI - Key Terms - hotel/motel

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.