In the Camp Margaritaville franchise agreement, what is the formula for calculating ADR?

According to Camp Margaritaville's 2025 Franchise Agreement, ADR, or Average Daily Rate, is a key performance indicator. The agreement defines ADR as "a measure of the average daily rate paid for rooms sold, calculated by dividing room revenue by rooms sold".

For a Camp Margaritaville franchisee, understanding ADR is crucial because it directly reflects the revenue generated per rented room or accommodation. By calculating total room revenue and dividing it by the number of rooms sold, franchisees can gauge their pricing strategy's effectiveness and overall demand for their accommodations.

This metric helps Camp Margaritaville franchisees in several ways. It allows them to compare their performance against other similar resorts, assess the impact of pricing changes, and optimize revenue management strategies. Monitoring ADR trends over time can also provide insights into seasonal demand fluctuations and the effectiveness of marketing campaigns. Ultimately, a higher ADR, achieved through effective pricing and occupancy strategies, contributes to increased profitability for the franchisee.