How is estimated income calculated?

The calculation of estimated income is best represented by the formula that includes the Average Daily Rate (ADR), the number of days in the month, the occupancy rate represented as "days earned percentage," and any additional income sources referred to as "Net Other." This approach accurately reflects the potential revenue generated by a rental property based on both occupancy and pricing.

In this formula, ADR represents the expected revenue per rental unit per day. Multiplying it by the number of days in the month accounts for the overall potential revenue within that timeframe. The days earned percentage indicates how many of those available days are expected to result in bookings, allowing for a more realistic estimate of actual income. Finally, adding "Net Other" captures additional income that may not be tied directly to room rentals, such as fees for services, catering, or other amenities. This comprehensive manner of calculating income gives a clearer picture of expected earnings.

Other options do not encompass all relevant factors for estimating income. For instance, merely multiplying ADR by the number of rentals and days in the month overlooks the nuances of occupancy rates and supplemental income. Additionally, combining ADR with just total sales or other limited parameters may not yield a complete or accurate estimate of income for a rental-focused scenario.