{"id":22453,"date":"2020-04-07T09:43:14","date_gmt":"2020-04-07T09:43:14","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/arr-average-room-rate\/"},"modified":"2024-12-23T09:22:12","modified_gmt":"2024-12-23T09:22:12","slug":"arr-average-room-rate","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/arr-average-room-rate","title":{"rendered":"ARR &#8211; Average Room Rate"},"content":{"rendered":"<p>What is the meaning \/ definition of ARR in the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hospitality-industry\">hospitality industry<\/a>?<\/p>\n<p>ARR stands for: Average Room Rate.<\/p>\n<p>It is a <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/kpi-key-performance-indicator\">hotel KPI<\/a> which measures the average rate per available room \u2013 similarly to <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/adr-average-daily-rate\">ADR<\/a>.<\/p>\n<p><img decoding=\"async\" class=\"entered lazyloaded\" src=\"\/wp-content\/images\/ARR_Formula_Xotels.jpg\" alt=\"\" width=\"900\" height=\"400\" data-lazy-src=\"\/wp-content\/images\/ARR_Formula_Xotels.jpg\" data-ll-status=\"loaded\" \/><noscript><img width=\"900\" height=\"400\" decoding=\"async\" src=\"\/wp-content\/images\/ARR_Formula_Xotels.jpg\" alt=\"\" \/><\/noscript><\/p>\n<p>Both of them can be used for the same purpose which is to calculate the average rate of the room. However, ARR can also be used to measure the average rate for a longer period of time (weekly, monthly) while ADR may only be used to measure the average rate of one day.<\/p>\n<p>How to calculate ARR?<\/p>\n<ul>\n<li><strong>ARR Formula<\/strong>= Total Room Revenue \/ Total Rooms Occupied<\/li>\n<\/ul>\n<p>This is necessary to measure the financial performance of the hotel.<\/p>\n<p><strong>See Also:<\/strong><\/p>\n<ul>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/revpar-revenue-per-available-room\">REVPAR<\/a><\/li>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/occupancy-rate\">Occupancy<\/a><\/li>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/ari-average-rate-index\">ARI<\/a><\/li>\n<\/ul>\n<p><strong>Synonyms:<\/strong><\/p>\n<ul>\n<li>Average Room Rate<\/li>\n<li>ARR<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is the meaning \/ definition of ARR in the  [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[32,9],"tags":[],"class_list":["post-22453","post","type-post","status-publish","format-standard","hentry","category-a","category-glossary"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>ARR - Average Room Room Rate Definition \/ Meaning - Xotels<\/title>\n<meta name=\"description\" content=\"Definition: ARR stands for Average Room Rate. 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