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ADR & occupancy — what it means

ADR (Average Daily Rate) is the average nightly price; occupancy is the share of nights sold. ADR × occupancy defines a unit’s gross rental income — projects can only be compared fairly on both together.

What ADR and occupancy show

ADR is the average price of a sold night; occupancy is the share of nights occupied over a period. A unit’s gross income is their product: a high ADR with an empty calendar and full occupancy at low rates produce equally weak results. So projects can only be compared fairly on both figures at once — or on the derived RevPAR.

Seasonality and checking the numbers

Phuket’s high and low seasons differ sharply in nightly rate and occupancy, so only annual averages are meaningful. Presentation figures are checked against the operating manager’s reports, the booking calendars of comparable units and open short-term rental platform data for the specific location.

How this works with us

In yield calculations we rely on the actual ADR and occupancy of operating complexes, not just the developer’s plan: we request operator reports and benchmark the unit against comparables by location, class and distance to the beach. The client sees which numbers build the forecast before paying a deposit.

Frequently asked questions

What is RevPAR and why does it matter?

RevPAR is revenue per available night: ADR multiplied by occupancy. One figure instead of two — handy for comparing units and projects with each other.

What occupancy counts as good in Phuket?

It depends on location, class and season: look at the annual average of the specific complex and nearby comparables, not the peak months from a presentation.

Phuket rental seasons and occupancy →

See it on a real property

Terms matter when there is an actual deal behind them. We will show how this one works on a project from the catalogue — documents and numbers included.

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Other terms

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