Arr Average Room Rate Formula

A more recent corollary to the adr rule of thumb has been a room rate multiplier technique for valuing hotels 11 in this reverse calculation a hotel may be valued at 1 000 times its average daily rate on a per room basis. Accounting rate of return arr is the average net income net income net income is a key line item not only in the income statement but in all three core financial statements. Average investment may be calculated as the sum of the beginning and ending book value of the project divided by 2.

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