Average Rate Index (ARI) Assesses Hotel Pricing Against Competitors; Combine with MPI and RGI for Effective Strategy
🏨 ARI measures hotel pricing against a competitive set, with 100 indicating market parity. A $60 ADR versus $50 yields an ARI of 120. In Lisbon's Chiado, a 90-room hotel achieved a March ADR of 178 euros against a 165-euro benchmark, resulting in an ARI of 107.9. U.S. ADR hit $171.74 in July 2026, up 5.7% year-over-year. CoStar's guidelines ensure benchmarking integrity, but ARI depends on competitor selection. Independent hotels should use ARI to refine pricing strategies.
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