WORLD STR INDEX

At a market level, ADR represents the average rate at which rental units are rented per day across a specific market (such as a city, region, or country). It’s calculated by adding the rental rates of all units rented in that market during a specific period, then dividing by the total number of rented unit days in that period. This provides an understanding of the average pricing in the market for a single day.

In the context of a market, the occupancy rate refers to the proportion of all available rental units or properties in a specific area that are currently rented or occupied. It’s usually expressed as a percentage. This rate indicates the overall demand for rental properties within that market. A higher occupancy rate generally suggests a strong rental market with high demand, while a lower occupancy rate can signal an oversupply of properties or reduced demand.

On a market level, RevPAR signifies the average revenue generated per available rental unit per day in a specific market over a certain time period. This is calculated by multiplying the market’s ADR by its occupancy rate. RevPAR on a market level allows for an evaluation of the market’s overall efficiency in terms of pricing and occupancy. It gives an estimate of the earning potential of rental units considering the current market demand and pricing strategies.