Total room revenue divided by the number of rooms sold results in which metric?

The metric derived from total room revenue divided by the number of rooms sold is known as Average Daily Rate (ADR). This financial metric is significant in the hospitality industry as it measures the average revenue generated per sold room over a specific period.

To understand this further, total room revenue is the income generated from renting out rooms, while the number of rooms sold accounts for only the rooms that have been sold—not the total number of available rooms. By calculating ADR, hotels are better able to gauge the effectiveness of their pricing strategies. A higher ADR indicates that the hotel is successfully charging higher rates for its rooms.

Other metrics, such as RevPAR (Revenue per Available Room) and occupancy rate, are related but do not derive from the same formula as ADR. RevPAR combines room revenue and room availability to assess overall performance, while the occupancy rate pertains to the percentage of available rooms that are actually sold. Gross Operating Profit (GOP) is a broader measure of operational efficiency and does not directly relate to room revenue per sold room. Thus, ADR accurately reflects the average price of rooms sold, making it the correct answer.