Calculate your ADR Index (ARI) by comparing your hotel's ADR against the competitive set average. Benchmark pricing performance instantly.
The ADR Index — also known as the Average Rate Index (ARI) — measures how your hotel's Average Daily Rate compares against the competitive set. It divides your ADR by the comp set's average ADR and multiplies by 100 to produce an index score. A score above 100 means you're commanding higher rates than competitors; below 100 means you're pricing lower.
ADR Index is one of three core performance indices used in STR (Smith Travel Research) benchmarking, alongside Occupancy Index (MPI) and RevPAR Index (RGI). Together, they paint a complete picture of how a hotel performs relative to its market.
This calculator computes your ADR Index and shows the dollar gap between your rate and the comp set average. Revenue managers use this metric to evaluate pricing strategy effectiveness and identify opportunities to either raise rates (if index is low with strong demand) or investigate why rates are disconnecting from the market.
Knowing your ADR in isolation is meaningless without market context. An ADR of $180 could be excellent in one market and poor in another. The ADR Index provides that context by benchmarking against competitors, telling you whether your pricing is above, at, or below market. Instant results let you test multiple scenarios so you can align pricing, staffing, and inventory decisions with current demand and cost pressures.
ADR Index (ARI) = (Hotel ADR ÷ Comp Set ADR) × 100 Rate Gap = Hotel ADR − Comp Set ADR
Result: ADR Index: 108.33
Hotel ADR $195 ÷ Comp Set ADR $180 × 100 = 108.33. The hotel is pricing 8.33% above the competitive set average, commanding a $15 rate premium per room night.
STR reports provide three key indices: MPI (Market Penetration Index for occupancy), ARI (Average Rate Index for ADR), and RGI (Revenue Generation Index for RevPAR). The mathematical relationship is RGI = MPI × ARI ÷ 100. A hotel can excel on rate but underperform on RevPAR if occupancy lags, and vice versa.
A rising ARI means your rates are increasing faster than the comp set (or declining slower). This could reflect successful repositioning, renovations, or improved revenue management. A falling ARI warrants investigation — are competitors raising rates while you stay flat, or are you discounting more aggressively than necessary?
Use ARI to set annual rate strategy. If your goal is market share growth, accept a lower ARI temporarily to drive occupancy. If profitability is the priority, push ARI higher and accept some occupancy trade-off. The right balance depends on ownership objectives and market conditions.
It depends on your strategy. A luxury hotel in its comp set should maintain an ARI of 105-120. A value-positioned hotel may intentionally maintain an ARI of 90-95 to drive higher occupancy.
STR (now part of CoStar) provides competitive set reports showing comp set ADR, occupancy, and RevPAR. Your brand's revenue management team may also provide market data through internal reporting tools.
A comp set typically consists of 5-7 hotels that compete directly for the same guests. They should be similar in class, location, and target market. STR helps hotels define appropriate comp sets.
Yes. An ARI significantly above 100 may indicate overpricing if it's accompanied by a low MPI (occupancy index). The goal is to maximize RGI (RevPAR index), which balances rate and occupancy.
RevPAR Index (RGI) = ADR Index (ARI) × Occupancy Index (MPI) ÷ 100. You can have a high ARI but low RGI if occupancy is significantly below the market.
Both. Monthly gives trend insights, while specific date analysis helps optimize pricing for events, holidays, and recurring demand patterns.