What is the definition of 'ADR' (Average Daily Room Rate) in the Even Hotels FDD?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Average Occupancy Rate1 | 72.9% |
|---|---|
| Average Daily Room Rate (“ADR”)2 | $166.02 |
| Average RevPAR3 | $121.09 |
Table Notes:
- 1 "Average Occupancy Rate" means the total rooms sold divided by the total available rooms.
- 2 "ADR" means "Average Daily Room Rate".
- 3 "RevPAR" means "Revenue Per Available Room".
Source: Item 19 — Financial Performance Representations (FDD pages 90–94)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, ADR stands for "Average Daily Room Rate." This is a key performance indicator for hotels, representing the average rental income earned for an occupied room in a given time period. It is calculated by dividing total room revenue by the number of rooms sold.
For a prospective Even Hotels franchisee, understanding ADR is crucial for assessing the potential revenue generation of their hotel. The FDD provides historical ADR data for "Mature Hotels" (those open for at least two years) to give franchisees an idea of what might be achievable. However, the FDD explicitly cautions against relying too heavily on this data for projecting future performance, as various factors can influence a hotel's actual ADR.
The 2025 Even Hotels FDD indicates that for the year ended December 31, 2024, the average ADR for Mature Hotels was $166.02. However, the FDD also notes that individual hotel performance varied, with some Mature Hotels achieving higher or lower ADRs. Specifically, 31.3% of Mature Hotels had an Average ADR greater than $166.02, with the ADR for Mature Hotels ranging from $266.19 to $102.92, and a median ADR of $135.60. These figures highlight the range of performance within the Even Hotels system and the importance of conducting thorough market research to understand the potential ADR for a specific location.
It is important to note that Even Hotels emphasizes that franchisees set their own room rates, which directly impacts ADR. The FDD also clarifies that the historic performance data is based on unaudited information submitted by licensed and managed hotels. While Even Hotels will provide the methodologies, databases, and assumptions used to arrive at the information, they do not independently verify the data. Therefore, prospective franchisees should carefully consider these limitations and conduct their own due diligence to assess the potential financial performance of an Even Hotels franchise.