The adr index measures a hotel's ADR performance relative to an aggregated grouping of hotels (e.g., competitive set, market, submarket/tract). An adr index of 100 equals fair share of ADR, compared to the aggregated group of hotels. An ADR Index greater than 100 represents more than a fair share of the aggregated group's ADR performance. Conversely, an ADR Index below 100 reflects less than a fair share of the aggregated group's ADR performance.
To calculate an ADR index: (Hotel ADR / Aggregated group of hotels' ADR) x 100 = ADR index
Fair share can be thought of as the subject hotel's “piece of the pie” in the market. For example, if the subject hotel's ADR is $50 and the ADR of its competitive set is $50, the subject hotel's index would total 100. If the subject hotel's ADR totaled $60, its index would be 120, indicating the hotel has captured more than its fair share. If the subject hotel's ADR totaled $40, its index would be 80, indicating the hotel has captured less than its fair share.
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