The Merchant Model Effect on ADR, RevPAR & Profitability | By Richard B. Evans

Apr 4, 2017 | Bad Credit Loans, Bank Lending, Business Lending, Business Loans, Finance

Is stating that the industry standard of ADR and RevPAR “is an imperfect science” a provocative statement? Two ocean front hotels (Exhibit “A”) sit side by side; each has the exact same ADR, Occupancy, Number of Units and RevPAR. Yet “Your Hotel” deposits and shows a net profit of $700,000 more than ‘Your Neighbors Hotel” because of “channel mix” and the “merchant model effect”.