What does ADR represent?

Average Daily Rate (ADR) is a key performance metric in the hospitality and real estate sectors. It represents the average price at which rooms are sold over a specific period. This metric is crucial for hotel operators and investors as it provides insight into pricing strategies and revenue management. By calculating ADR, stakeholders can assess the effectiveness of their pricing, understand market demand trends, and benchmark performance against competitors.

In the context of real estate finance, particularly in the hotel industry, knowing the ADR helps in evaluating the potential profitability of a property, making it an essential figure when analyzing and managing investment performance.

The other choices, while relevant to certain aspects of property management and financial analysis, do not correctly define ADR. Total revenue encompasses all income generated, which is broader than the average room price. Total operating expenses per room focuses on costs rather than revenue generation. The percentage of rooms booked pertains to occupancy rates, which, while important, does not relate to the average room price.