Average Room Rate (ARR)

ARR, or Average Room Rate, is the average rate charged for all rooms sold over a specific period, regardless of whether these rooms are occupied by guests paying different rates (e.g., discounted rates, corporate rates, etc.).

While ARR and ADR are closely related metrics used to gauge the average revenue per room, there is a slight difference. ARR can be calculated for any period, whereas ADR typically focuses on daily performance and may emphasize only certain types of room rates, for example, excluding rates from promotional offers or long-term stays. 

ARR is calculated by dividing the total room revenue by the number of rooms sold.