What does 'ADR' stand for in the context of Even Hotels' financial performance?

According to Even Hotels' 2025 Franchise Disclosure Document, "ADR" means "Average Daily Room Rate". This is a key performance indicator (KPI) in the hotel industry, representing the average revenue earned from occupied rooms in a day. Even Hotels uses ADR to assess the financial performance of its "Mature Hotels," defined as those open for at least two full years as of December 31, 2024, without significant room closures, and in good standing with their franchise agreements. The FDD includes historic ADR data for these Mature Hotels. For example, the average ADR for Mature Hotels was $166.02. However, the document cautions franchisees not to rely on these figures to project future performance.

The FDD also mentions "Average IHG One Rewards Contribution ADR," which refers to the average daily room rate specifically for reservations made by members of the IHG One Rewards loyalty program. For the Mature Hotels, some achieved an Average IHG One Rewards Contribution ADR exceeding $174.52. This metric helps Even Hotels understand the revenue generated through its loyalty program and the potential impact of loyalty members on overall ADR. The median IHG One Rewards Contribution ADR was $148.26.

Understanding ADR and its variations is crucial for prospective Even Hotels franchisees. It provides insights into the revenue-generating potential of the hotel and the impact of factors like loyalty programs. However, the FDD emphasizes that past performance is not indicative of future results, and a new franchisee's financial outcomes may differ significantly due to various factors, including competition, location, and economic conditions. Therefore, while the ADR data provides a benchmark, franchisees should conduct their own market research and financial analysis to assess the potential of their specific location.