Research on ADR (Research Paper Sample)

Research Lead- Glenn Trevor QUESTION What is the average rate of hotel rooms per night in the largest cities in the U.S.A INSIGHTS * Below is a summary of the top ten most populated cities in U.S. by the year 2017. CITY 2017 ESTIMATED PUPULATION New York 8,622,698 Los Angeles 3,792,621 Chicago 2,716,450 Houston 2,312,717 Phoenix 1,626,078 Philadelphia 1,580,863 San Antonio 1,511,946 San Diego 1,419,516 Dallas 1,341,075 San Jose 1,035,317 * On average, you would spend USD 260.27 for a night in most of the most popular hotels in these cities. OVERVIEW Hello and thank you for the request to determine the average rate of hotel rooms per night in the U.S. Basically, hotel performance is measured by the average daily rate (ADR), the revenue per available room (RevPAR), and the occupancy rate of a hotel. Despite America having one of the lowest occupancy rate at 54.1%, hotel industry in United States has grown annually over previous years. The most expensive city for hotel rates in the United States was Boston in 2016 followed by New York, San Francisco, Washington and Los Angeles. FINDINGS * Some of the most popular hotels in the above mentioned cities are; Saratoga Springs(NY), Hotel Emma(San Antonio), Hotel Giraffe(NY), The Langham(Chicago), Casablanca Hotel(NY) and The Lodge at Woodloch(Philadelphia). * The average 2017 cost of a hotel room including all taxes and surcharges was $260.27, New York being the most expensive at $385.08. * San Antonio and San Diego are some of the cities whose hotel rates dropped due to market rationalization. New York New York’s ADR is summarized as follows; Year(JAN-NOV) 2015 2017 Average Daily Rate booked upper-upscale $283.44 $326.94 Average Daily Rate booked upscale $256.09 $332.14 Average Daily Rate booked midscale $212.25 $294.97 Average Daily Rate booked in Total $327.63 $385.08 Los Angeles The following is the ADR for Los Angeles. Year(JAN-NOV) 2015 2017 Average Daily Rate booked upper-upscale $194.21 $204.87 Average Daily Rate booked upscale $232.96 $247.23 Average Daily Rate booked midscale $178.31 $184.99 Average Daily Rate booked in Total $245.46 $256.63 Chicago Chicago hotel rates are summarized below. Year(JAN-NOV) 2015 2017 Average Daily Rate booked upper-upscale $194.10 $238.63 Average Daily Rate booked upscale $157.24 $220.19 Average Daily Rate booked midscale $139.83 $195.16 Average Daily Rate booked in Total $217.76 $275.38 Houston Houston’s ADR rates. Year(JAN-NOV) 2015 2017 Average Daily Rate booked upper-upscale $184.02 $179.00 Average Daily Rate booked upscale $157.04 $145.33 Average Daily Rate booked midscale $134.68 $126.45 Average Daily Rate booked in Total $200.12 $192.68 Phoenix ADR rates for Phoenix were as shown. Year(JAN-NOV) 2015 2017 Average Daily Rate booked upper-upscale $145.45 $158.30 Average Daily Rate booked upscale $122.11 $135.26 Average Daily Rate booked midscale $114.89 $120.10 Average Daily Rate booked in Total $156.47 $168.24 Philadelphia Hotel rates in Philadelphia faired as follows. Year(JAN-NOV) 2015 2017 Average Daily Rate booked upper-upscale $191.71 $197.23 Average Daily Rate booked upscale $196.56 $190.75 Average Daily Rate booked midscale $159.37 $171.68 Average Daily Rate booked in Total $220.47 $225.59 San Antonio The ADR for San Antonio is summarized below. Year(JAN-NOV) 2015 2017 Average Daily Rate booked upper-upscale $147.52 $145.85 Average Daily Rate booked upscale $123.51 $122.18 Average Daily Rate booked midscale $111.36 $109.00 Average Daily Rate booked in Total $156.65 $154.60 San Diego The ADR for San Diego is presented below. Yea...