ARR (Average Room Rate)

Definition

ARR is essentially synonymous with ADR (Average Daily Rate) — total room revenue divided by total room nights sold. The two terms are used interchangeably in different markets and industry sources.

What it tells you

Your average price per room. Like ADR, it’s an average that hides the distribution — the same ARR can be produced by selling all rooms at one rate or by selling a mix of high- and low-rate bookings.

How to track it

Same as ADR. Most PMS systems use “ADR” as the default term; some European markets prefer “ARR.”

Where it fits

When you encounter “ARR” in industry literature, treat it as ADR. The pricing-decision implications are identical.