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The averagerate index (ARI) is a metric that allows hoteliers to evaluate the performance of their room rates relative to a group of competitors during a specific period. The other two indicators are MPI (marketpenetration index) and RGI (revenue generated index). How is ARI calculated?
AverageDailyRate or ADR The AverageDailyRate or ADR is a popular KPI for hotel industry. The ADR is the averagerate at which each room at the hotel was sold on a given day. It is calculated by taking the Average room revenue and dividing it by the total number of rooms sold.
Financial Benchmarks The hotel industry uses many financial benchmarks to measure success, including AverageDailyRate (ADR), RevPAR, occupancy and MarketPenetration Index (MPI). But how do you measure this, and minimize the risks associated with any real-estate investment?
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