A privately-owned and operated hotel has proprietary ownership in the company’s name, though investors or others may have a financial interest in the hotel.
A leased hotel is owned by a third-party but has leased the physical building of the hotel to the company for a predetermined period.
A managed hotel is owned by a third-party but has signed an agreement with another hotel brand to manage the hotel operations.
A franchisee hotel is owned by a third-party, but to use the brand name, the owner pays an upfront fee and ongoing royalties.
A room is a part or division of a building enclosed by walls, floor, and ceiling, which is rented by hotel guests for accommodation or lodging on a short-term basis in exchange for money.
Room nights are the number of rooms available multiplied by the number of days in a given period.
Number of Days
The number of days in an analyzing period.
Average daily rate (ADR) is the average price or rate at which each hotel room was sold for a specific day. ADR is also a financial indicator to measure how successful the performance of a hotel is compared to other hotels with similar offerings, such as hotel size, amenities, services, location and the hotel’s historical trend.