Traditional Culture Encyclopedia - Hotel franchise - Are the changes of ADR and REVPAR related to the changes of income and net income?
Are the changes of ADR and REVPAR related to the changes of income and net income?
The changes of ADR and REVPAR are related to the changes of income and net income.
RevPAR is the only indicator to measure the operating income level of all hotels, and ADR is the average house price, which is the increase or decrease factor of income and net income.
RevPAR (revenue per saleable room) =Occ (occupancy rate) xADR (average house price). RevPAR is an indicator to measure income level. The higher the RevPAR, the higher the income and net income. The change of ADR is one of the factors of RevPAR change, which affects the income level.
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