Measures a hotel’s ADR performance relative to an aggregated grouping of hotels (i.e., competitive set, market or submarket). If all things are equal, a property's ARI is expected to be 100, compared to the aggregate group of hotels. Historically, this is described as "fair share."
An ARI greater than 100 represents more than the expected share of the aggregated group’s ADR performance. Conversely, an ARI below 100 reflects less than the expected share of the aggregated group’s ADR performance.
To calculate an ARI: (Subject hotel ADR/Aggregated group of hotels’ ADR) x 100 = ARI
For example, if the subject hotel’s ADR is $50, and the ADR of its competitive set is $50, the subject hotel’s ARI totals 100. If the subject hotel’s ADR totals $60, its ARI would be 120, indicating that the hotel captured more than its expected share. If the subject hotel’s ADR totals $40, its ARI would be 80, indicating that the hotel has captured less than its expected share.
