Which of the following accurately defines ADR growth in the context of real estate?

Average Daily Rate growth, often abbreviated as ADR growth, is a crucial metric in the context of real estate, particularly in the hospitality and rental sectors. This term refers to the increase in the average revenue earned per occupied unit (such as hotel rooms or rental properties) over time.

Monitoring ADR growth helps investors and property managers assess how well they are capitalizing on market demand relative to their pricing strategy. A rising ADR generally indicates that a property can command higher rents, reflecting stronger demand or improved property performance. This metric is vital for making strategic decisions about pricing, marketing, and property management.

The other choices do not accurately capture the meaning of ADR in the real estate context. Average Development Rate pertains to new construction projects, Annual Dividend Rate relates to investor earnings from stocks or shares, and Area Development Resources focuses on resources required for real estate development rather than income generation metrics. Thus, the correct understanding of ADR is inherently tied to how well a property is generating income through occupancy, validating the choice centered on rental income growth.