What is ARI and how is it calculated?

What is ARI and how is it calculated?
February 3, 2025 Catherine Smagala

ARI stands for Average Rate Index and measures a hotel’s performance relative to its competitive set. If all things are equal, the ARI would be 100. If your property is performing better than the compset, you will have an ARI higher than 100, and vice versa if your property is doing poorer than the compset.

To calculate your ARI, simply divide your property’s ADR by the aggregated group of the compset’s ADR, then multiply by 100.

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