Step 1: Focus on the growth that you are going to project.

The default entries in this section are set at 3%, but you can edit these as you see fit on a per-segment basis. 

Step 2: Ensure you are satisfied with the historical ADR information input for the set.

The ADR (set) will adjust based on the rate of growth you have input. The overall growth rate will be a blend of the numbers input above. 

Step 3: Ensure you are satisfied with the Subject ADR that has been input, as well as the Subject Index or penetration factor for the ADR

Subject Index / Forecast- This helps you see how the subject will perform in relation to the set. 

• Will your subject achieve a proportionate share of the rate, or will it outperform the set and achieve a higher ADR? 
• If you perceive that the subject will outperform the competitive set due to specific growth factors, better amenities, recent renovations, or an aggressive property improvement plan, then here is where you need to make adjustments.  Will you get your fair share of the rate or overperform the set? 

Pro tip - Be sure to focus on the subject's historical ability to achieve a rate in light of the competition. The figures in historical years will show you this, so you can forecast more intelligently by relying on past-period growth.